By Lee Min-hyung
LG Electronics has entered the medical monitor business, as part of a bid to find new revenue sources, expanding its presence into the lucrative business-to-business (B2B) medical-grade display market.
The move is part of LG Group's strategy to strengthen its B2B distribution channels in compensation for the overall slow growth in the business-to-consumer (B2C) sectors.
The company's home entertainment (HE) division, which produces TVs and displays, is in the initial stages of forming the new business, according to the company, Monday.
"We have recently decided to diversify our display lineup into the medical sector, as part of our bid to search for a new growth area," an LG Electronics spokesman said.
But the company declined to comment on its exact plans, citing its infancy.
"Nothing specific has yet to be confirmed over the business, including our sales goals and marketing strategy, as we are still in the R&D phase over developing medical monitors," said the company official.
LG Electronics is now hiring new R&D-focused salespeople and look for partnering companies to produce the medical equipment
This can be interpreted as a move to tackle slow growth in the global display market, partly due to falling demand for personal computers (PCs) and the rise of smartphones.
Global display shipments dropped 10 percent to 59.59 million last year compared to the previous year, according to market researcher IDC. This was the first time that the number fell below 60 million since 2000 when the display business entered a golden age with the rise of PCs.
Local technology giants, including Samsung and LG, have relatively weak profiles in the global medical equipment market dominated by only a few strong healthcare-related IT players such as Siemens, Olympus and Sony.
"The medical equipment industry is very conservative in terms of entry barriers, as each country has different sets of certification procedures that any new medical business entrants should pass before becoming licensed," an industry source said.
"It may take a lot of time for LG to receive licenses from major markets, but it remains to be seen as the firm has yet to unveil specific business blueprints."
The nation's leading electronics companies are shifting their focus onto premium displays which are gaining a slow yet steady growth momentum in recent years.
LG Electronics also continues to diversify its high-end display lineup ― including ultra-high-definition (UHD) displays ― in its bid to meet growing demand for quality content.
Critics say LG's penetration into the medical equipment market may be aimed at offsetting weak demand for LCDs.
In recent years, LG Electronics has been moving to forge competitiveness in profitable, premium products ― including organic light-emitting-diode (OLED) TVs and high-end LG Signature home appliances. Expectations are that its recent decision may have come from a similar corporate initiative.
LG Electronics has entered the medical monitor business, as part of a bid to find new revenue sources, expanding its presence into the lucrative business-to-business (B2B) medical-grade display market.
The move is part of LG Group's strategy to strengthen its B2B distribution channels in compensation for the overall slow growth in the business-to-consumer (B2C) sectors.
The company's home entertainment (HE) division, which produces TVs and displays, is in the initial stages of forming the new business, according to the company, Monday.
"We have recently decided to diversify our display lineup into the medical sector, as part of our bid to search for a new growth area," an LG Electronics spokesman said.
But the company declined to comment on its exact plans, citing its infancy.
"Nothing specific has yet to be confirmed over the business, including our sales goals and marketing strategy, as we are still in the R&D phase over developing medical monitors," said the company official.
LG Electronics is now hiring new R&D-focused salespeople and look for partnering companies to produce the medical equipment
This can be interpreted as a move to tackle slow growth in the global display market, partly due to falling demand for personal computers (PCs) and the rise of smartphones.
Global display shipments dropped 10 percent to 59.59 million last year compared to the previous year, according to market researcher IDC. This was the first time that the number fell below 60 million since 2000 when the display business entered a golden age with the rise of PCs.
Local technology giants, including Samsung and LG, have relatively weak profiles in the global medical equipment market dominated by only a few strong healthcare-related IT players such as Siemens, Olympus and Sony.
"The medical equipment industry is very conservative in terms of entry barriers, as each country has different sets of certification procedures that any new medical business entrants should pass before becoming licensed," an industry source said.
"It may take a lot of time for LG to receive licenses from major markets, but it remains to be seen as the firm has yet to unveil specific business blueprints."
The nation's leading electronics companies are shifting their focus onto premium displays which are gaining a slow yet steady growth momentum in recent years.
LG Electronics also continues to diversify its high-end display lineup ― including ultra-high-definition (UHD) displays ― in its bid to meet growing demand for quality content.
Critics say LG's penetration into the medical equipment market may be aimed at offsetting weak demand for LCDs.
In recent years, LG Electronics has been moving to forge competitiveness in profitable, premium products ― including organic light-emitting-diode (OLED) TVs and high-end LG Signature home appliances. Expectations are that its recent decision may have come from a similar corporate initiative.
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