The Brazilian unit of US wireless and network equipment provider Netgear is expected to represent 50% of the company's Latin American operations in 2009, Netgear Latin America general director Victor Baez told BNamericas.
The company established direct operations in the country in early 2007 and later expanded to Argentina, Chile and Mexico. According to the executive, the latter three operations combined will make up for the remaining 50% of next year's Latin American sales.
In the near future, the company expects to maintain direct operations in these four countries instead of expanding in the rest of the region.
"We have Netgear's staff performing commercial and marketing activities in Argentina, Chile and Mexico, while distribution - as it is our business model everywhere - is an indirect process through partners. In other Latin American countries, we have very specific and indirect sales," said Baez.
Although the executive could not reveal figures for expected sales or growth in regional operations, Baez believes Brazilian activities will increase next year due to increasing demand for networks for SMBs and residences , despite the world financial crisis.
Netgear expects to increase its portfolio of solutions for the SMB market within the next 12 months due to the recently announced acquisition of US corporate security solutions provider CP Secure for US$20mn.
Netgear started operating in Brazil targeting lower income segments C and D which recently began purchasing PCs due to the federal government's digital inclusion program which provides credit lines for the acquisition of desktops and notebooks.
The Brazilian unit currently has six employees and has sold 100,000 routers in the first year of operations.
For 2Q08, Netgear saw US$204mn in global net revenues, up 24% compared to the same period in 2007.
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