LG has released its earnings report for the second quarter of 2015, and it’s a snap-shot of how competitive the smartphone market has become. LG’s Mobile Communications Company brought in $3.33 billion for the period, showing a small increase of 1% and generating a modest profit of just $200,000.
Around a decade ago, RIM was riding high on the popularity of its Blackberry devices, yet today we see them on the verge of being bought out or going private after a long, slow fall. A similar pattern may be playing out for Apple and within the Android ecosystem of manufacturers, we have witnessed HTC’s fall from the pinnacle. Samsung hopes to avoid a similar fate and is planning a meeting in Seoul on November 6th with investors to explain just how they will accomplish that feat.
Samsung certainly seems to be riding high right now, emerging as the dominate manufacturer of devices running the dominate mobile operating system for smartphones and tablets. However, a chink in the armor may have appeared last quarter when share prices fell and sales of the Samsung Galaxy S 4 were not as strong as expected. Some analysts are worried that as the market for smartphones matures and the devices become even more of a commodity item than they have been, Samsung may have peaked.
In response to these recent developments and concerns, Samsung decided now would be a good time to communicate their longer-term business plans aimed at 2020 according to an unnamed Samsung executive. Samsung will likely focus on the future of smartphones and tablet devices since those divisions drive about two-thirds of their revenue. Other areas like flat-screen televisions, home appliances, medical equipment, and even solar cell production will probably be covered as well along with potential new markets for the electronics giant.
Do you think investors are right to be concerned about Samsung’s position?
Who said Android manufacturers didn’t deliver on their word? OK, maybe not always on software updates but HTC is living up to its promise of crappy sales. Earlier this week the Taiwanese giant announced it expected this quarter’s sales numbers to be down as much as 17% over the first quarter of 2012. It turned out January wasn’t quite so bad. HTC reported sales revenue of T$15.54 billion ($527 million US) for the first month of 2013. That figure is 5.9% less than the T$16.52 billion for January 2012. So yes, the M7 is big for HTC.
Source: UK Reuters
Last week HTC threw a big party for employees to celebrate the start of a new year. CEO Peter Chou was excited to show off the HTC M7 for those in attendance. The big question that still continues to float out there for everyone is whether Chou’s confidence in HTC and their ability to turn things around in 2013 will materialize on the back of new devices or is it too little too late. The new year got off to a rocky start as HTC released new numbers for their first quarter sales projections, and the numbers are not good. HTC is projecting revenues to slip by as much as 17 percent compared to the fourth quarter of 2012.
Keep in mind the fourth quarter of 2012 was a terrible one for HTC, coming in as the lowest quarter of profit in eight years for the company. Their net sales of approximately $34.4 million USD represented a stunning drop of 91% compared to the prior year’s fourth quarter. The march to improved profitably during 2013 will begin in earnest next week when HTC has slated the likely unveiling of the M7 at an event in New York City.
source: The Next Web