LG, Samsung report earnings, phone businesses not in perfect health

by IBM on July 30, 2010

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.

LG, Samsung report earnings, phone businesses not in perfect health originally appeared on Engadget Mobile on Fri, 30 Jul 2010 14:27:00 EST. Please see our terms for use of feeds.

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