14 DAY TRIAL // Samsung has just taken the second place on the top of the most profitable mobile phone producers in the world. Figures show that LG's results are even better, in terms of development over the same period of time.
Motorola has lost its place as the second world mobile phone producer to Samsung. Still, this does not mean that the Swedish company has managed to reach great development figures. They have just managed to do better than Motorola and make a small step forward.
In fact, Samsung's second quarter results have the smallest profits in the last four years. The reason for this regression is that the price of computer memory chips has considerably fallen, although flat-screen monitor sales have considerably developed.
LG Electronics, on the other hand, has managed to reach its largest-ever quarterly operating profit in the cell phone sector. The company has succeeded in achieving a growth of up to 15 percent when compared to the previous quarter and more than 25 percent when compared to the same period, last year.
LG has reached these results due to the large number of GSM handset sales in Europe as well as in Central and South America. Their WCDMA mobile phones have been doing quite well too, as they managed to attain considerable growth in Korea, North America and Asia too. Due to this, the company has managed to reach an operating margin of over 10 percent for the first time in the last five years.
Samsung, on the other hand, has reached an operating margin of only 8 percent, far lower than that of LG. The future looks bright for LG Electronics, as they expect their profit rates to grow even further. Samsung too looks for a major comeback, as to stick to its newly earned second place for as long as possible.