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GE hopes its “Reveal” will shed new light on unit“s earnings

US group General Electric Co.“s (GE) lighting division today will unveil a new incandescent light bulb that filters out the yellowish hue of most bulbs in favour of a clearer light that brightens col…

US group General Electric Co.“s (GE) lighting division today will unveil a new incandescent light bulb that filters out the yellowish hue of most bulbs in favour of a clearer light that brightens colours. GE plans a huge marketing push in the autumn for the light bulb, known as “Reveal”, and will begin rolling out the bulb in retailers in the US and in Canada in September, said Matthew J. Espe, president and chief executive of GE Lighting, in an interview. Mr. Espe said the new bulb is the biggest product push in the history of GE Lighting, Cleveland, and the biggest technological advance in incandescent lighting – the standard household bulbs – since soft white light bulbs appeared about 20 years ago. That type of bulb, which had a softened light with less glare than its predecessors, is now the standard in consumer light bulbs. “This gives us a whole new lighting platform to the consumer market,” Mr. Espe said. “We“re really excited about the sales opportunity here.” GE Lighting could use such a boost. Though the light bulb is the product that first made GE“s brand name stick in the minds of consumers, the lighting business today is only a small part of the far-reaching conglomerate, accounting for a little more than 2% of its 2000 revenue of US$ 129.9 billion, according to analyst estimates. GE doesn“t break down sales of the lighting unit separately, but sales have been flat in the unit for some time, with competition from low-cost providers increasing, analysts said. Consumers have come to view everyday light bulbs more as commodities, with little differentiation among products. GE hopes that “Reveal” will change that. The bulbs, which will be priced between US$ 2.99 and US$ 6.99, have a range of sizes that should fit most household fixtures, Mr. Espe said. According to GE, “Reveal” bulbs contain the element neodymium in their glass, which filters out most of the yellowish light and gives the bulbs a powder-blue color when they are unlit. In an internal survey of 4,000 people, 85% of participants said they would buy them, and 62% said they preferred “Reveal” bulbs to soft white bulbs, Mr. Espe said.

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