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News: A little bit of what’s happening in the wireless industry.

April 19, 2006 in Wireless Industry News

A look at what’s happening in the cell phone industry, especially with all the earnings announcements by Motorola, Nokia, Samsung, and LG…

As you may or may not know, Motorola (yeah I know this is a Nokia blog, it’s coming later) announced its earnings yesterday for the first quarter of 2006.

Basically Motorola sold a ton of RAZR phones in Q1, boosted their worldwide market share by 4.8%, and increased wireless sales revenue by 23%. Unfortunately, their networking equipment division slacked off and sales for these devices dropped 14%. All in all, Motorola missed their earnings estimate of 29 cents a share by a penny (per share).
So, unfortunately, stock traders ripped apart the stock (symbol: MOT, like the apple sauce) and as of right now it’s down 7%.

On April 11, Nokia unexpectedly announced that the average sale price for their cell phones rose to $125, from an expected average sale price of $120 or less. Generally, most people expect the average sale price to fall since most of the major cell phone manufacturers are trying to market their new “crap” phones to third world countries. Nokia reports first quarter earnings tomorrow.

Meanwhile, Samsung reported that it would make a sincere attempt to copy Motorola’s thin-is-in strategy by releasing their own thinnest-ever cell phone: the t509. Due for release in May, the t509 is 9.8 mm thick, compared to 11.5 mm for the SLVR. Note that this is NOT the thinnest cell phone in the world, only in the USA. Samsung also announced 12 more thin phones headed to the USA by summer 2006. Samsung is definitely doing something right (at least compared to poor MOT): on friday they reported that first quarter net profit rose 26% from the previous year.

Finally, LG Electronics announced that their cell phones still suck.


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