LG profits down, mobiles to blame
LG, the fourth-largest mobile phone manufacturer, reported a drop in Q2 earnings that it has attributed to price pressures for mobile phones. This is a common theme this quarter, both Samsung
(LG'ss closest competitor) and Sony Ericsso
n have echoed the same message.
LG's troubles are worse than most though, with the second quarter profit being 70% less than the same quarter a year ago. LG actually had an operating loss for the mobile phone unit.
* Q2 sales of handsets totaled 12.1 million units
* The mobile phone group posted a loss of $3.9 million
* Projections put the average price per handset for 2005 at $155, down nearly 5%.