LG 2007 Annual Report Download - page 25

DD
Digital Display Company
We see the “big picture” a little differently
than others. Lots of companies can deliver
a no-frills big screen LCD or plasma TV.
But only a handful can deliver one that is a
work of art. At LG Electronics, stylish design
and smart technology make our flat-panel
HDTVs really stand out. Not just in
international design competitions, but
where it really counts. Your living room.
Sales rose a healthy 11% to USD 13.6 billion as global demand for full
HD 1080p flat-panel displays and widescreen monitors continued to
grow across the board. While we recorded an operating loss for the year
due to profitability issues with our plasma TV business, these losses
progressively shrank each quarter, setting the stage for us to return
to profitability in 2008 with a target operating profit of just over USD 80
million. Although we expect our LCD and plasma TV sales volumes to
roughly double in the coming year as falling prices bring flat-panel TVs
within reach of more consumers, we also expect fierce competition to
limit sales growth to USD 14.1 billion, a modest 3.7% increase.
LCD TVs We were the world’s No. 4 producer of LCD TVs in 2007 with
14% of the market. Our current lineup includes 19, 22, 26, 32, 37, 42,
47, and 52 inch screen sizes. In 2008, we aim to sell 14 million units and
capture 14% of the global market.
PLASMA TVs We were the world’s No. 2 producer of plasma TVs in 2007
with 30% of the market. Our current lineup includes 32, 42, 50, and 60
inch screen sizes. In July, we took a key step toward returning to profit-
ability by increasing our 50-inch panel production capacity from 360,000
to 440,000 units a month. We aim to sell 4 million units and capture
30% of the global market in 2008. We believe that demand for 32-inch
plasma TVs will be particularly strong due to growth in both primary
TV purchases in emerging markets and secondary set purchases in
developed ones. We expect this business to turn its first operating profit
starting in the first quarter of 2008.
LCD MONITORS In 2007, we retained our No. 4 global market share,
close on the heels of No. 3 HP. We are now either first or second in
this market in 24 countries worldwide. During the year, we expanded
the boundaries of technology and design by introducing new monitors
with dynamic contrast ratios as high as 50,000:1, color gamuts of up to
115% of the NTSC spectrum, and stands with interactive LED lighting
effects. According to industry statistics, widescreen LCDs rose from 9%
of monitor sales in 2006 to over 35% in 2007, and are on track to pass
50% in 2008. We expect this trend to help double our sales as we work
to capture a major portion of this profitable emerging segment.
PROJECTORS Although we are a relative newcomer to this business,
we are proud to be producing some of the most innovative designs in the
industry. In 2007, we introduced the world’s first wall-mounted projector
(AN110), an innovation that earned us a coveted IDEA Design Award.
We also launched the world’s first ultra-mobile LED-based projector
(HS101) to deliver 100 ANSI lumens, more than three-times the previous
category leader. In 2008, we aim to nearly triple sales from 36,000 to
109,000 units as we continue to expand our business and consumer lineup
with innovative models, including high-end home theater projectors with
full HD resolution.
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1. LG50 2. LG60 3. LG40 4. PG60 5. PG30 6. LG70
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