Legend urges IT dealers to take CE path

Legend urges IT dealers to take CE path

Adelaide-based Legend Corporation is set to expand its consumer electronics (CE) product line-up and is inviting IT resellers to come along for the ride.

The ASX-listed memory distributor and manufacturer was seeing strong uptake in its CE segment of the business, known as Legend Digital, which was hatched mid 2004, CEO, Bradley Dowe, said.

"We are stepping out of the strict areas of memory," he said. "We are also focusing on CE and flash-enabled devices. In the past we were a component manufacturer, but since listing on the ASX we are delivering complete solutions across new market segments."

Over the coming months, products up for grabs will include LCD displays, personal video recorders (PVRs), flash memory-enabled devices and personal storage.

"A thumbprint reader with biometric protection is set to launch before Christmas," Dowe said.

The CE segment of the business is expected to triple in size to more than $10 million in the ANZ market while flash media and flash based appliances such as MP3 and MP4 are expected to hit $43 million.

This would be about 20 per cent of the overall business, Dowe said.

Under the digital banner, the company offers digital TV receivers/recorders, DVD players, LCD displays, home theatre systems, portable DVD players and satellite products. Other facets of the business include memory modules, CPUs, display devices including video cards, motherboards, storage devices and USB products.

While CE and AV partners were quick to come to the table, he said traditional IT resellers had been slow to recognise growth opportunities in the convergence space.

"There is untapped potential in this space," Dowe said. "Resellers in the traditional ICT space should be embracing the new opportunities because the products have grown out of this market.

"Resellers need to know these devices are computers - the PVRs, set-top boxes and MP4 players. Some partners regard them as toys, but they need to change their thinking."

Flash memory-enabled CE products including digital cameras, MP3 players and mobile phones were top growth areas, he said.

"There are so many new market segments largely driven by convergence and the growth of flash-powered applications," Dowe said. "Flash gives us the opportunity for real portability."

The company is also preparing for the wider rollout of DDR2, which aims to boost CPU performance and ease bottlenecks.

It aimed to boost performance by as much as 25 per cent over traditional DDR1 technology, he said.

"DDR1 has been resilient, and had an excellent run, but we'll be able to squeeze out more performance with DDR2," Dowe said. "This next level of performance will drive all other areas of technology."

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