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1. Mobile Handset
Review
In retrospect, 2002 was a landmark year in which the Mobile Handsets Division successfully overcame
numerous internal and external challenges to emerge as a “ global player.” In the CDMA business, LGE
has built up a broad customer base among major mobile carriers in North America, while diversifying its
export sales as well. Moreover, a solid platform for sustained growth has been laid for the GSM sector
through the timely release of cutting-edge mobile phones and the strengthening of our customer base
in Europe.
Of significant note, we acquired a CDMA brand license for the LG brand in China. The company now has
in place a full-line operating system in China in terms of R&D, production, marketing, and service.
Furthermore, the successful trial operation of 3G (third-generation) service during the 2002 World Cup
finals enabled the Division to lead the way in the supply of state-of-the-art mobile devices.
These initiatives enabled the Division to record dramatic sales growth of 45.9% in 2002 over the
previous year, amounting to 3.5 trillion won. This included the sale of 16 million mobile phones,
representing a 58% growth from a year ago. As a result, LGE ranked sixth among global mobile
handset markers in 2002. In particular, LGE was able to capture a 19% share in the global CDMA
market through a significant expansion of its overseas customer base. Thanks to the burgeoning sales,
the Division’s operating profit margin improved to 9.7% in 2002.
Outlook
The year 2003 will likely pose serious challenges to our continued success. However, we are prepared to
overcome any adversity and position ourselves as a truly key player in the mobile handset market. To
achieve this goal, we will have to constantly reinforce our business capabilities.
In 2003, the global mobile phone market is expected to grow 6% as compared to the previous year. In
particular, strong demand for color-screen and multifunctional phones is likely to continue over the near
term. Efforts will be concentrated on initiatives to boost our market share in Korea’s CDMA sector and
LG Electronics Inc. IAnnual Report 2002 I32 33
LGE enjoyed r obust growth of 4 6 % in the mobile handset business in 2 0 0 2 ,
enabling the company to rank sixth in the global handset market. LGE is also
well-positioned to reap benefits fr om its extensive investment in the 3 G sector.
Jong-Eun Kim
Telecommunication
Equipment & Handset
We will aggressively pursue high-potential business opportunities in China through
a broadening of our product offerings and increased facility investment.
LG전자 - 본문 2003.4 .22 7:15 AM 페이지36