LG 2004 Annual Report Download - page 32

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we will devise a plan to strengthen our cost
competitiveness in key product lines, allowing us to
win amongst this intensified competition. Another
focus will be the development of new convergence
products such as external optical storage and DVD-
ROM drives for game console. We also plan to
improve our profitability by increasing the
production capacity of factories based overseas.
This will help us maintain our the No.1 position in
the global marketplace throughout 2005.
One of our most important moves this
year will be a thorough preparation for launching
our Blu-ray Disc (BD) products. BD is a next
generation record storage system that will generate
a large, full-fledged market by 2007. With this in
mind, we'll strive to release our initial products in
the first half of 2006, making an early
breakthrough into the BD market. In the AV
business, demand for DVD recorders will increase
drastically in advanced markets such as the U.S. and
Europe. The size of the home theater market is
growing at an average rate of 17% per year. The
competition in this market will become intense, and
product prices will decrease sharply, with
conventional major companies struggling to keep
their market share as Chinese makers enter the
market with low product prices. To be competitive
in this harsh market situation, we will strive to
create high value by launching a wide range of
convergence products, like the world's first DVD
recorders with built in HDD/STB. Furthermore, we
will foster the development of Telematics products
in advance, in order to be fully ready for market
demands in the future.
LG Electronics plans to double the sales of
PCs in the domestic market in 2005 by focusing on
domestic sales of notebook computers. We will also
work to further elevate our share of PC sales,
allowing us to become number one in the domestic
market by 2006, and one of the top 3 players in the
global market. By putting forth our best we will
ensure that 2005 will be a stepping stone when we
bolster our position as a number one supplier of
PDAs and tablet PCs.
B.B. Hwang
Head of Digital Media Division
Express Series Notebook PC
Strengthened multimedia function by installed next
generation Intel Centrino mobile technology / DDR 2 dual
channel memory / PCI express X16 connection for the
graphics chip / Serial ATA HDD / ATI Mobility Radeon X600
graphic chip of 128MB memory
Digital Media
* Others are excluded in total
Optical Storage
AV
PC
15
13
44
33
23
Contribution
to Sales
%
Contribution
to Operating
Profit
%
Product
Composition
%
Digital Media Division