LG 2001 Annual Report Download - page 37

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With the sale of over 10
million units, Digital
Handset is now a “thrust”
business of LG Electronics
LG Electronics Inc. The
43
rd Annual Report
Mobile Handset
2001 Review & 2002 Strategy
2001 was a breakthrough year for Digital Handset. With the sale of over 10 million
units we reached the number eight position among the world's handset makers. We
achieved growth of 57%, reaching 2.4 trillion won in sales with an operating profit of more
than 160 billion won. Digital Handset is now a thrust business of LG Electronics and our
members are proud of its success and confident in its future.
Among our many achievements, the following are particularly mentionable: first we
established a strong relationship with top US telecom service providers like Sprint and
Verizon, facilitating our high growth in overseas markets. This growth was also achieved
through successful customization, suiting our products to the varied needs of our varied
customers. We also launched a CDMA joint venture with Langchao, helping us take
advantage of new opportunities in the emerging Chinese CDMA market. Despite our late
entry into GSM technologies our newly launched GSM handset business successfully
penetrated markets in most of the GSM-based countries in Europe and Southeast Asia as
well as China.
In 2002 we will continue to work together to overcome possible market adversities,
delivering the highest possible results with maximum efficiency. To do this we must first
secure our leadership in the CDMA (Code Division Multiple Access) handset market. This
will require a continued commitment to product quality and a strengthening of six sigma
cost-cutting strategies.
Second, we will focus our resources on further developing GSM wireless technology
platforms, specifically GPRS (General Packet Radio Service) 2.5 Generation handsets. With
Digital Appliance lending brand recognition and infrastructure (they built our complete
business line, from the R&D center through production and customer service facilities) we
have established solid ground for success in China.
Last, knowing our future success is closely tied with worldwide developments in
wireless internet technologies and their multimedia applications, we must seek further
acquisition of overseas patents and Intellectual Property Rights (IPR) for next-generation
mobile telecom technologies.
The Company will implement a merit-based rewards system in which accomplishment
and productivity is assured due compensation. Furthermore, we must foster a working
environment that encourages knowledge-sharing and learning from each other's successes
and failures. Together we will face future challenges and build more solid relationships with
customers.
Head of Mobile Handset Jong Eun Kim