LG profits down, mobiles to blame

Jul 19 2005 - 03:57 PM ET | LG Mobile Phone
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 Ericsson 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. Highlights: * 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%.