LG in notebook play

Korean manufacturer LG has enticed resellers to sell its range of Sonoma-based notebooks with an incentive program as it steps up its presence in this growing but crowded market.

The company released 12 new models priced at between $1999 (retail) for the entry level model to around $4999 (retail) at the top end. Under the reseller incentive program, channel partners (not retailers) redeem points for selling LG notebooks and monitors, said Rodney Rodrigues, IT category manager at LG Electronics.

Accumulated points could be redeemed for LG products which the reseller would sell at 100 percent margin. Movie tickets and petrol vouchers are also being offered, he said.

"If they [resellers] buy 100 notebooks and 200 monitors a year, they could end up with a Plasma screen," he said.

The retail aimed "Express" notebook models are being sold through Harvey Norman and David Jones with LG looking to strike deals with other retailers, he said.

LG has produced 100,000 notebooks globally since its decision in late 2003 to stop OEM contracts and step up the marketing of its own brand. LG had been the number one OEM manufacturer for some major brands including IBM.

In Australia, the company has targeted to ship between 70,000 and 80,000 notebooks this calendar year with 70 to 80 percent of these sales driven through channels and the remainder through retailers, Rodrigues said.

Rodrigues touted LG’s build-to-order (BTO) capability in Korea. Australian distributors and resellers can place orders of at least 50 units with LG Australia and BTO machines would arrive at the customer’s door within three weeks, he said.

LG sells to the channel through 12 distributors which include the likes of Altech, Bluechip IT, BCN, TodayTech, Synnex, Omega, Leader and Galas.