LG 2007 Annual Report Download - page 24

MC
Mobile Communications
Company
It is hard to think of any consumer
electronics field that changes more
rapidly and dramatically than the mobile
phone space. Models seem to come and
go overnight, and only a precious few
achieve icon status. At LG Electronics,
stylish design and smart technology
make our handsets really stand out.
Not just in international design
competitions, but where it really
counts. Your palm.
We shipped a record 80.5 million mobile phones in 2007, a remarkable
27% improvement that boosted sales 20% to USD 11.2 billion. Operat-
ing profit margin also continued to improve, rising from 6.8% to 8.1%
as our premium handsets won over consumers around the globe.
During the year, we expanded our product localization strategy from
North America, Europe, and Korea to include the CIS, India, and South
and Central America. We also sharpened our cost-competitiveness by
strengthening operations, increasing our number of global platforms,
and streamlining our global supply chain. In 2008, we are aiming to
grow sales volume, revenue, and operating profit by more than 20%
as we target sales of 100 million units.
MOBILE PHONES The 2006 global launch of the LG Chocolate phone—
the first handset in our Black Label series of premium design phones—
has been a tough act to follow, selling over 15 million units through the
end of 2007. During the year, we launched the LG Shine phone, the second
phone in our Black Label series, featuring a sleek full-metal body. We
partnered with fashion icon Prada to launch the Prada Phone by LG,
a sophisticated and elegant handset with the industry’s first complete
advanced touch interface. We also launched the LG Viewty, a feature-
oriented phone with a 5.0-megapixel camera and high-end multimedia
capabilities. These advanced handsets are just the beginning of what
we believe will be a long series of global best-sellers that will wow
consumers with stylish design and innovations in image capture, user
interface, and Internet connectivity.
In 2008, many of our new phones will feature touch technology to make
their advanced features easier to use. These will include high-tech
handsets with advanced camera and Internet features such as the LG-
KF510, LG-KF600, and LG-KF700. We will also launch the LG Secret, the
third phone in our Black Label series. Designed around the concept of
“style that lasts”, the LG Secret has a timeless and elegant design that is
enhanced by stylish materials such as carbon fiber and tempered glass.
MOBILE TECHNOLOGIES We are extremely competitive in all current
mobile communications technologies. As the market leader in CDMA
and 3G phones, we continue to create handsets that will take full ad-
vantage of the increased capacity and bandwidth that technologies
like HSUPA and 3G LTE will bring into the mainstream in the coming
years. We are also adding value by supporting major mobile broadcast
standards like DVB-H, MediaFLO, T-DMB, and S-DMB in select models
across our product lineup.
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1. LG-KF510 2. LG-KF700 3. LG Voyager (LG-VX10000) 4. LG Secret (LG-KF750)
5. LG Viewty (LG-KU990) 6. LG Vu (LG-CU920) 7. LG-KF600 8. LG-KM710 9. LG-KS20
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