LG 2004 Annual Report Download - page 31

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LG ELECTRONICS ANNUAL REPORT 2004
030
031
Digital Media Division sales in 2004
recorded KRW 3.8 trillion, a 7% decrease from the
previous year. This is mostly due to our withdrawal
from the PC OEM business. Even though our
revenues went down, our operating profit
increased from the previous year with a 4.6%
margin. This is an indicator of our continued focus
on profit-oriented business in the Division.
The introduction of new products ahead
of competitors allowed us to achieve the No.1
market share in 2004 in all kind of optical storage
products including the DVD writers market
traditionally dominated by Japanese makers. These
efforts have allowed us to sustain a leadership
position in the world's optical storage markets for
the past seven years.
In the AV business field, our home
theaters accquired the world number one market
share in 2004. We have also enjoyed great success
in developing technological advancements,
creating a next-generation HD recorder for the first
time in Korea, and launching the world's first DVD
Recorders with built-in HDD/STB. We have also
placed a strong emphasis on the Telematics
business, a new growth engine, and will continue
to bolster our leading position in that market, both
at home and abroad.
We restructured our PC business,
reducing the low profitability of PC OEM business,
and implementing an aggressive brand marketing
program. As a result, our domestic market share in
PCs increased to 14% in 2004, compared to the
3% of 2003. In addition, our mobile device
business has grown remarkably driven by a close
partnership with Hewlett Packard. This paves the
way for our becoming a number one supplier to
global mobile device markets.
The economic uncertainties in Korea
caused by a slow-down in domestic consumption,
and an Korean won's appreciation, are expected to
continue in 2005. Our Digital Media Division will
keep growing based on our augmentation of
aggressive marketing activities, and the launching
of new products.
The size of the optical storage market in
2005 is expected to be 250 million units, a 4%
increase over the previous year with the DVD Writer
continuously positioning as a mainstream product
in this market. Sales of slim DVD Writers are
expected to continue growing. Mindful of this, we
will put forth our best efforts to extend our sales of
these products into global markets. With speed
competition being over, we believe product price
will be a crucial factor for success in 2005, and so
Recorder Combi Home Theater LH-RC9500TA
The world's first ±R/RW multi DVD recorder and 6HD HiFi
VCR combi home theater / 1200W high capacity, installed
sound improvement technology called XTS pro / Recording
DVD up to six hours with 4.7GB disc / Adopting IEEE 1394 DV
input, 7 in 2 multi memory slot
03 04
0.5 3.8
0.4 4.1
3.3
3.7
03 04
173
174
1Q 2Q 3Q 4Q
1.0
0.9
0.9
1.0
Sales
(in trillions of Korean won)
■Domestic
■Export
Operating Profit
(in billions of Korean won)
Quarterly Sales
(in trillions of Korean won)