Looking at the reports for the first quarter profits of the phone’s manufactures, it appears everyone is fairly firmly in the recession at the moment, and Nokia is really in it.Bu not LG! LG are happily looking out the window, and singing “lalalala”.
Sony Ericsson was the first manufacturer to release reports, and they made a loss of around 10% of their expected profits – that totals 385million euro loss. Ouch!
Nokia appears to be taking the full smack of the recession (not good at all – I like Nokia phones!), as they took a massive cut of 90% in profit. Big ouch! That equates to a drop from 1.2 billion euro, to only a mere 122 million euro.
I have also heard rumors (although nothing concrete), that Motorola are spending stupid amounts of money to try and save money (not sure how that works), and may be initiating job cuts costing about 256 million if the rumor is to be believed.
LG’s song of “lalala” is doing them the world of good though. Despite them shipping out a lower amount of phones (a 7% drop), they did make a good 2.8 billion dollars out of handset sales, which is a huge 22.6% better than last year – so they really aren’t looking like they are being affected too greatly.
I am not sure how they have managed to do this, but a few people believe it is due to them wining the mid range market. However, Nokia are selling loads of 5800’s which is in the mid-range market, so LG may be in for some competition in the next quarter. LG are confident that they can branch out into the top end of the market as well now, they have the S-class UI making its entrance with the likes of the LG Viewty smart and the LG Arena.