BOSTON-A new handset market report shows both LG Electronics and Samsung Electronics making significant strides in the mobile phone market, while other big handset players continue to suffer in a tight worldwide economy.
Indeed, Strategy Analytics said LG Electronics is gaining ground so fast it could potentially knock Sony Ericsson Mobile Communications from the top 5 list as soon as the fourth quarter.
According to Strategy Analytics’ new “Global Handset Market: Q3 2002 Market Update,” LG Electronics increased shipments by 40 percent and Samsung increased by 60 percent. The firm said most major handset players are doing relatively well, although suffering from slower-than-expected shipment and revenue growth.
“It is a positive sign for the industry to see vendors remaining profitable in challenging market conditions,” said Chris Ambrosio, director for the firm’s Global Wireless Practice. “Motorola even managed to turn its highest operating margin since 1997. The last several quarters have been highlighted by vendor profit maintenance amid lower-than-expected volumes. This quarter reaffirms our belief that we are at the bottom of a trough waiting for the eventual upturn in demand.”
