IR
Although outcome of such merger is yet to be clearly determined, we are expecting a positive effect on LGE for the following reasons;
1, the first quarter market shares in the PC market according to IDC are
- Desktop : Compaq 11.8%, HP 8.5%
- Notebook : Compaq 10.3%, HP 4.2%
Hence, it is likely for Compaq to lead the notebook business of the new entity since Compaq had a higher dominance in the notebook market - as a evidence, they named the merged entity's note book business unit as an "Access Device", formerly Compaq's notebook division name before the merger. We carefully anticipate such an arrangement would bring a portion of the HP market to us as well.
2. And also not like low-end products, our high-end notebooks are not the products that can be easily replaced. The quality and the price of our products certainly insures such ramification.
3. As we have already experienced higher orders upon the merger of Digital and Compaq, we are confident that the merger between Compaq and HP would bring the similar results for LGE this time as well.