LG 2007 Annual Report Download - page 27

DM
Digital Media Company
It used to be that you had to go to a theater
to really enjoy movies. Now you can grab
some popcorn and a soda and head to the
living room for a captivating sight and
sound experience. At LG Electronics,
stylish design and smart technology make
entertainment really stand out. Not just in
international design competitions, but
where it really counts. Your imagination.
We generated sales of USD 5.8 billion in 2007, virtually identical to
our 2006 results. Operating profit was down just over 3% to USD
929 million as we faced increasing product commoditization, falling
prices, inaccurate market forecasting, and delays in getting products
to market. Today, we continue to enhance profitability by expanding
outsourcing, setting phase-out schedules for less profitable products,
initiating planning for stylish new products, launching new HD products,
and focusing on opportunities in the mobile Internet device, car info-
tainment, and security fields.
HOME AUDIO We captured 13% of the global home-theater-in-a-box
market in 2007, maintaining our No. 2 ranking while closing the gap
with market leader Sony to a mere 2.2 percentage points. We also
signed a consulting agreement with audio legend Mr. Mark Levinson
to take our sound quality to the next level and introduced new models
designed to perfectly complement our flat-panel TVs.
HOME VIDEO We made significant inroads in the high-definition player
category in 2007 as we grew our market share from zero to 4% following
the January launch of the BH100 “Super Blu”, the world’s first dual-
format HD disc player. The HD player market is forecast to double to
USD 4 billion in 2008 as it stays on track to reach USD 13 billion by 2010.
MOBILE ENTERTAINMENT DEVICES Our latest touch-screen MP3
player—the FM37—dazzled the judges at the 2007 iF, EISA, and Red Dot
design awards with its stylish design and innovative graphical user in-
terface. We aim to offer a touch-screen mobile TV to European football
fans in time for the 2008 UEFA European Football Championship.
CAR INFOTAINMENT We continued to expand our presence in the car
audio aftermarket, capturing the No. 3 ranking in Latin America. We
also successfully launched our portable navigation device lineup in North
America as we continued to expand our OEM audio-video-navigation and
telematics system sales to major global automakers.
SECURITY SYSTEMS Surveillance equipment sales grew a solid 10%
in 2007 as we continued to make inroads in international markets. We
expect sales to accelerate in 2008 as we debut new surveillance cameras
featuring our advanced XDI chipset with an industry-leading 570 TV lines
of color resolution and a new family of IP cameras and network video
recorders that will enable us to tap a market segment that is growing
around 40% annually.
OPTICAL STORAGE We marked our tenth year at the top of the industry
by extending our market share from 31% to 35% and our leadership
with 20x burning, 9.5 mm thick slot-loading, and slim external models.
We continue to look beyond Blu-ray to the next generation of ultra-high-
density recording technologies.
NOTEBOOK PCs We introduced a broad new lineup of models in 2007
designed to satisfy the full spectrum of users and price points. We con-
tinue to deliver trend-setting designs with the latest mobile platforms
from Intel as well as next-generation wireless broadband technologies
such as HDSPA and WiMAX.
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1. T80 2. HT953TV 3. RH39 4. BE06 5. P300 6. LAC7800 7. LS903
48 + 49
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