|
|
|
| |
| Business Scope |
|
| Area |
Research, development
and production of CDMA handset, GSM handset,
wireless handset. |
| Location |
Korea |
|
| Overseas |
| LGICUS (San Diego, US) |
LGICTH(Bangkok, Thailand) |
| LGESP(San Paulo, Brazil) |
LGEMS(Mexicalli, Mexico) |
|
|
|
| Performance
Overview |
 |
|
 |
|
| Review |
In retrospect, 2002 was a landmark
year in which the Mobile Handsets Division successfully overcame
numerous inter
nal and external challenges to emerge as a "global player".
In the CDMA business, LGE has built up a broad customerbase among major mobile carriers in North America, while diversifying
its export sales as well. Moreover, a solid platf
orm for sustained growth has been laid for the GSM sector through
the timely release of cutting-edge mobile phones
and the strengthening of our customer base in Europe.
Of significant note, we acquired a CDMA brand license for the
LG brand in China. The company now has in place a
full-line operating system in China in terms of R&D, production,
marketing, and service. Furthermore, the successful
trial operation of 3G (third-generation) service during the
2002 World Cup finals enabled the Division to lead the way
in the supply of state-of-the-art mobile devices.
These initiatives enabled the Division to record dramatic sales
growth of 45.9% in 2002 over the previous year, amou
nting to 3.5 trillion won. This included the sale of 16 million
mobile phones, representing a 58% growth from a year ago.
As a result, LGE ranked sixth among global mobile handset markers
in 2002. In particular, LGE was able to capture a
19% share in the global CDMA market through a significant expansion
of its overseas customer base. Thanks to the
burgeoning sales, the Division's operating profit margin improved
to 9.7% in 2002. |
|
|
|
| Outlook |
 |
The year 2003
will likely pose serious challenges to our continued success.
However, we are prepared to overcome any adversity and
position ourselves as a truly key player in the mobile
handset market. To achieve this goal, we will have to
constantly reinforce our business capabilities.
In 2003, the global mobile phone market is expected to
grow 6% as compared to the previous year. In particular,
strong demand for color-screen and multifunctional phones
is likely to continue over the near term. Efforts will
be concentrated on initiatives to boost our market share
in Korea's CDMA sector and Head of Digital Appliance ensure
continued robust growth of its GSM sales worldwide.
Furthermore, we will move proactively to expand its market
share in the 3G service for CDMA/ WCDMA mobile networks
ahead of the competition. To this end, we will strive
to acquire additional intellectual property rights (IPRs)
related to 3G mobile service. |
|
|
