LG 2004 Annual Report Download - page 19

LG ELECTRONICS ANNUAL REPORT 2004
018
019
Our business results in 2004 were
outstanding. We achieved KRW 9.5 trillion in total
sales with an operating profit of KRW 636.2 billion.
The total sales and operating income were up by
55% and 99% respectively over the previous year.
We shipped a total of 44 million handsets in the
global market, a growth of more than 60% over
the 27 million handsets sold in 2003. On the basis
of such a rapid growth, our global market share
increased to 7%. This has laid the groundwork for
LG Electronics to become a 'Global Top 3' handset
manufacturer in the near future.
LG Electronics has been sustaining its
leadership position in the global CDMA handset
market, supplying 26 million handsets in 2004, a
22% growth. In particular, CDMA handset
shipment in the North American market went up
more than 30%. Based on our cutting-edge
technology and strong worldwide brand power, we
also solidified our leading position in high growth
potential markets such as China, Mexico, and
Venezuela. Furthermore, we have penetrated the
global GSM markets in Europe and North America
supplying over 14 million handsets, which was up
136% over the previous year. LG Electronics has
recently started supplying GSM handsets to such
major global mobile phone service providers as
Vodafone, Orange, T-Mobile in Europe, and
Cingular in the U.S. We have also built a solid
business foundation in China, India, and Latin
America, expanding our overseas operations
greatly.
With the world's best technology, and
timely penetration, we have secured the No.1
position in the 3rd generation mobile handset
market, supplying a total of four million WCDMA
handsets to major European companies such as
Hutchison, Orange, and Telefonica. Furthermore,
we were selected as a preferred WCDMA handset
supplier to Cingular Wireless in the U.S. This gave us
an opportunity to lay the cornerstone for a full-scale
launch of the WCDMA handset business in the U.S.
market.
In regards to network equipment business,
domestic mobile communications operators delayed
their investments in the 3rd generation wireless
networks in 2004. To counteract this unfavorable
market environment, we have been laying the
groundwork for future growth through continued
innovations in our management style. Despite the
slow-down in the world's telecommunication
equipment market, LG Electronics has completed the
development of an HSDPA base-station, which is 3.5
generation WCDMA equipment.
LG-U8138, WCDMA Handset
for Overseas Markets
3G WCDMA handset that supports camcorder & video telephony /
Supports VOD & MOD / Supports MP3 player
03 04
Sales
(in trillions of Korean won)
■Domestic
■Export
7.9
9.5
1.4
1.6
4.7
6.1
0403
Operating Profit
(in billions of Korean won)
319
636
1Q 2Q 3Q 4Q
Quarterly Sales
(in trillions of Korean won)
1.9
2.9
2.2
2.5