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The Q2 Earnings Week Recap

July 27, 2008 in Wireless Industry News

Most of the big phone makers reported earnings last week, with results that were all over the board. Here’s a quick rundown.

Samsung

Big S still holds the no. 2 spot in cell phone sales, with 45.7 million handsets sold in the second quarter of 2008. That number came in lower than Q1′s total of 46.3 million phones, but still a 22 percent increase from last year. The company said that it’s still on track to sell 200 million phones by the end of the year.

Total profits for the South Korean conglomerate rose 51% to 2.14 trillion won or $2.12 billion dollars. Keep in mind that this includes Samsung’s pretty vast array of products – TVs, flat-panels, and mobile phones among them.

LG

On a much smaller note, LG’s wireless unit banked a 537 billion won profit ($533 million dollars) on sales of 3.849 triliion won. That’s a 34.3% increase from last year’s sales, due in large part to three phones: the LG Secret, Viewty, and Venus.

LG sold 27.7 million handsets during the second quarter. Of curious note was the company’s forecast for the third quarter: more competition stemming from a “global economic slowdown” which could lead to a lower average selling price (ASP) and lower profitability.

Sony Ericsson

Now Sony Ericsson really, really screwed up this quarter. Thanks to stronger competition, slower market growth, and a laundry list of other issues, the partnership found itself with a decline in sales (down 9% to 2.8 million euros) and a nasty 97% drop in profits.

Good and bad news: in an effort to reduce costs, SE is going to cut about 2,000 jobs in some kind of corporate restructuring move. It also mentioned that the third quarter would be a rocky climb of sorts (“challenging market conditions” to be exact).

It’s really too bad, because Sony Ericsson’s flagship phone, the Xperia X1, is slated to release sometime within the next 6 months (Q3 or Q4, most likely Q4). That phone could revive the struggling SE – or at least it could if the company actually addressed the severe lack of information about this smartphone.

Nokia

Nokia’s Q2 earnings came in better than expected, with a cool profit of $1.75 billion dollars. Global market share increased to 40%, and the company expects the handset market to grow by a minimum of 10% in the next year. Oh yeah, Nokia also increased sales in the USA by 10%, a previously unheard-of feat.

You might have missed Motorola on this list, but that company is expected to report earnings this coming Thursday. Should be an interesting day.

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