ME electronics business 'favorable'
Following the announcement of Panasonic’s less than stellar third quarter results, the head of the company’s Middle East operations has spoken out about the local effects of these results and how the company intends to address the issues they have raised. The Japanese electronics giant, which reported a massive loss of 63.12 billion yen (about $700 million) for the third quarter of fiscal 2009, will slash 15,000 jobs to reduce costs.
“Although the results are not what we have become known for, we still view them as encouraging,” said Seiji Koyanagi, managing director, Panasonic Marketing Middle East (PMM). Koyanagi indicated that overall, Panasonic’s business in the Middle East has been favorable and it will continue on its growth strategy from a financially sound platform.
“The past quarter’s financials mirror the overall trend for most multinationals – not only in the electronics industry. The company as a whole had anticipated the impact of the downturn in global markets, and we had already begun positioning ourselves early on by implementing corrective measures via bold structural reforms and strengthening the company’s management structure,” Koyanagi added. “The consolidated net loss should be viewed not only against the backdrop of the global financial crisis, but also against an all-time high yen and continued restructuring initiatives within the company.”
Koyanagi believes one has to take a long-term view on the business, without dwelling on current negatives. He remarked that while Panasonic in the Middle East is not immune from world events, markets in this region had contributed positively to meeting sales targets. He explained that the strong support for the Panasonic brand by consumers in the region contributed greatly towards Panasonic Marketing Middle East’s bottom-line, which was ultimately consolidated in the company’s overall results. The company is under no illusion that 2009 will see further “challenging economic times,” but Panasonic’s Middle East boss believes that the markets in which his team operates are more stable than other international markets. Therefore, PMM is well-placed to take advantage of potential growth opportunities.
The number one plasma manufacturer in the world and a leading player in the LCD TV market, Panasonic has a global flat-panel TV sales target of 15.5-million units for the 2009 fiscal year, an increase of 50 percent from the past year. The company will focus on improving the basic performance of flat-panel televisions such as energy-saving and faster response time for moving pictures using the Neo Plasma Display Panels (PDPs) and IPS Alpha LCD panels. Market penetration of flat-panel TVs in the Middle East is relatively low compared to, for example, European markets. The majority of consumers in the Middle East still own CRT TVs, which by implication present growth opportunities as these consumers begin to upgrade to flat-panels.
Saudi Xerox reports high growth
Xerox Corporation’s VP Middle East and Africa, Marcus Childs, traveled to Riyadh to congratulate the Saudi Xerox team on its achievements. With growth across Xerox’s entire solutions portfolio, which includes printers, services and work flow management systems, Saudi Xerox Limited (SXL) has become the company’s largest sales organization in the Middle East. The growth marks another success for The Olayan Group, which operates and manages Saudi Xerox. While in Riyadh, Childs held a team meeting at Saudi Xerox’s headquarters attended by The Olayan Financing Company’s President Peter Dadzis and Ehab Guindi, Gener
“2008 has been a fantastic year for Saudi Xerox Limited, and I thank each one of you for the tremendous contribution you have made to Xerox both locally and abroad. One of the major factors of this success is the Olayan–Xerox relationship, which has never been stronger,” said Childs.
Xerox believes that a commitment to research and development is one way to help survive tough economic times. Just last year, Xerox and its inventors earned 609 US utility patents, exceeding a commitment to increase the company’s annual number of awarded patents by one-third.
Xerox Chief Technology Officer and president of the Xerox Innovation Group, Sophie Vandebroek said companies must keep the innovation pipeline flowing even in a lean economic climate or they will face huge product gaps in future years.
“You cannot sacrifice tomorrow to save today. Our investment in innovation guarantees Xerox leadership in our core business and creates opportunity to grow in new markets,” said Vandebroek. “It’s also a source of pride for us. More than 2,300 employees, past and present, have been granted five or more patents — an extraordinary accomplishment.”
KSA Millionaire promo winner
Toshiba Gulf announced that the grand prize winner of its Toshiba Millionaire promotion is 29-year old Khalil Mohammed Khalil who bagged SR1 million worth of gold in a raffle draw held in Riyadh recently. Abdallah Al-Naem, representative of the Commercial Permits Centre of Riyadh Chamber of Commerce selected the winner from the draw. Also present during the draw were representatives from Toshiba.
The Toshiba Millionaire promo allowed shoppers to select prizes of their choice that amounted to SR1 million when they registered online for the draw. Santosh Varghese, regional general manager for Toshiba Gulf Computer Systems Division said the Toshiba Millionaire promo provided an unparalleled value to Toshiba’s customers.
The winner, who is based in Dammam, was shocked to be chosen. Khalil’s Toshiba Satellite laptop was his first notebook and provided suitable features. “This is my first laptop. It is a wonderful device; user-friendly and stylish also.” Khalil plans to further his studies and buy a home with his winnings.
Workshop on Internet standards
Tech consultancy Devoteam shared its insights into the future of the Internet both globally as well as regionally at an event organized by the Communications and Information Technology Commission (CITC) in Riyadh.
Focusing on IPv6, the next-generation standard for the Internet, experts from Devoteam discussed their experiences in Europe with an audience that included executives from Saudi Telecom, Mobily, Zain, ITC, and Atheeb. As lead consultant for the Saudi IPv6 Focus Group, Devoteam also updated the Kingdom’s Internet service providers with news and information about the status of the national project to upgrade Saudi Internet standards from IPv4, the main standard used by the Internet today, to IPv6. IPv4 refers to Internet Protocol version 4 (IPv4), which is the fourth revision in the development of the Internet Protocol (IP) and it is the first version of the protocol to be widely deployed on a global basis. Together with IPv6, it is at the core of standards-based internetworking methods of the Internet, and is still by far the most widely deployed Internet Layer protocol.
Osama Ghoul, managing partner, Devoteam Middle East addressed the conference on technical developments for both IPv4 and IPv6. “Most of the Net still uses IPv4, which is nearly twenty years old. We’re now seeing issues in this standard, namely that there’s a growing shortage of IPv4 addresses. IPv6 fixes a number of problems in IPv4, such as the limited number of available IPv4 addresses, as well as adding improvements in terms of security. It’s vital that both national bodies as well as data providers are ready for the transition, otherwise the Net’s growth will grind to a halt.”
Whilst estimates vary as to how long the Internet will continue expanding based on IPv4 technology, most government bodies and data providers agree that Internet addresses will be exhausted by 2010 or 2011 at the latest. “The Internet is at the center of our business and personal lives, and what we’re talking about today will affect us tomorrow unless action is taken,” said Ghoul. “The work currently being undertaken by the Saudi IPv6 Focus Group is of immense importance. Without it, we could run out of Internet addresses sooner than we think.”
Strengthening its Saudi channel
IT distributor Mindware plans to grow in the Saudi market by strengthening its current partners network to reach more customers and offer more value-added services across the Kingdom. The move is in line with expectations that the Saudi Arabian IT market will touch nearly $3.9 billion by 2011, which reflects a compound annual growth rate (CAGR) of 12 percent.
The company has appointed Radwan Basheer as the new General Manager of Mindware in Saudi Arabia. Plus, to establish a stronger presence within the Kingdom, Mindware has recently invested in a state-of-the-art office in Riyadh, which will serve as a domestic hub for its Saudi operations. The Saudi office comprises a 40-strong team trained to handle the unique demands of Mindware customers locally.