LG, Samsung report earnings, phone businesses not in perfect health
By Chris Ziegler 
posted July 30th 2010 2:27PM
posted July 30th 2010 2:27PM
South Korean archrivals Samsung and LG have both come clean with their second-quarter earnings this week. While there's still black ink across the board, LG suffered a 33 percent decline in net profit year-over-year, undoubtedly due in large part to a little bit of bleeding going on in the giant mobile division where they've posted a year-over-year loss "due to investment in R&D and expansion of channels in emerging markets for future development." Samsung, meanwhile, saw a 7.2 percent profit margin in its mobile business and a respectable 22 percent year-over-year improvement in shipments, but it came at the cost of higher price pressures -- margins are razor-thin for these guys, and they seem to be getting even smaller. The company ends on a positive note by saying that the Galaxy S series and the Wave should help push it through the third quarter, but considering how these guys flood the low end (read: the part of the market where it's especially difficult to make a buck) with dozens of devices every year, it seems like it's going to take superhuman efficiency to keep shareholders smiling.
I am really liking Sammy's Galaxy S line. Especially the Epic 4G. Can't wait for its release!
@skemme
I'll second that!
I held the Captivate for the first time today and I was disappointed. Nice size phone, light weight and really thin, but it had that cheap feel to it. Cheap as in it could be sold as a prepaid phone.
Not suprised by this. The carriers are demanding cheaper and cheaper prices for them, but demanding more features at the same time. "We want the best os, and the best materials for just $10 more than your cheap plastic flip phone." This is going to be a constant. Sell more devices, but make less money. At least in the US anyway...
Dear Samsung, lovely galaxy S line, but please fix your GPS problems with your Galaxy S phones...and maybe we'll buy future phones.
I hope Engadget does a blog about this issue soon.