LG 2004 Annual Report Download - page 37

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LG ELECTRONICS ANNUAL REPORT 2004
036
037
companies. LG Electronics is now seeking to advance
into international home network markets in China and
the U.S. by establishing strategic alliances with overseas
construction and real-estate firms.
PLAN FOR 2005 �In 2005, LG
Electronics will focus on promoting growth engines and
maximizing business performance by developing the
world's best premium products based on our
technological expertise.
First, we plan to invest about 60% of our
total R&D budget in developing and launching top
quality products that hold leading global positions in
the digital TV, mobile handset, and display markets. In
the field of digital TV, LG Electronics plans to strengthen
our competitiveness in production costs, and to develop
high-end products with PVR and EPG functions. In the
PDP business, high priorities will be given to increasing
production yield and introducing new production
processes. In the meantime we will extend the line-up
of OLEDs used in the internal display of mobile
handsets, while developing the commercial production
technology of AM OLED.Ushering in the upcoming
convergence era in the mobile handset business, we will
make a timely introduction of high-end mobile
handsets with distinct multimedia functions. In
addition, we will also increase our efforts to secure
intellectual property rights, and conduct in-house
development of core parts, by participating in the
standardization of 3rd and 4th generation mobile
communications, both at home and abroad.
Second, LG Electronics will increase R&D
efforts on premium products where the Company
already has global leadership. By promoting these
premium products, such as side-by-side refrigerators,
TROMM washing machines, CYKING vacuum cleaners,
the Company will strive to enhance brand awareness
and profitability, as well. In the arenas of optical storage
and digital AV, LG Electronics will further strengthen
our core competencies to develop top quality products
and to lead next-generation HD level standards and
specifications.
Finally, LG Electronics is committed to
becoming an ever greater leader in the marketplace by
building burgeoning businesses with its digital
technology. By forging strategic affiliations with
business partners we expect to gain early market access
to the mobile TV field, and by utilizing the core
technology of digital multimedia broadcasting, we
anticipate taking the initiative in telematics and mobile
communications devices markets. The company also
aims to strengthen our global R&D capabilities by
increasing overseas R&D personnel in strategic areas
such as India, Russia and China. All these efforts will lay
the groundwork for becoming a global top 3 electronics
and IT company by the year 2010.
CTO Hee-Gook Lee
�Developing mobile handsets for exports to major global telecom operators
- Supplying 3G WCDMA handsets to Hutchison
- North America's first EVDO VOD phone
- China's first World phone
�Developing high-end multimedia handset for the Korean market
- Developing the world's first terrestrial DMB phone
- Satellite DMB phone, MP3 phone, Fingerprint recognition phone
�Developing dual standard DVD±RW drives
�Enhancing the in-house development of core components,
and leading in the development of next generation standards
�Providing full line-up of DVD recorders
�Developing premium level convergence products such as HDD/VCR
�Early launching network-connected products
�Extending the line-up of automobile-related products such as Telematics terminals, Car DVD, etc.
�Enhancing product leadership in the 3G handset business
�Strengthening the competitiveness of convergence handsets,
and in-house development of core components
�Early developing advanced technologies for high-end handsets
�Extending the application of innovative form factors / design
�Developing ultra slim type Super Multi Drives
�Extending the development of core components,
and securing patents for next generation storage standards
�Extending line-up of new products by applying wire and
wireless networking, and developing DVD convergence
products with distinct functions
�Extending market size through the development of portable
AV convergence products
Mobile
Handset
Optical
Storage
Digital AV
Main Achievements in 2004 Implementation Plans in 2005
Main Achievements of R&D in 2004 and Future Plans