Samsung profits down - losing to Nokia in phone wars

Samsung is a hugely profitable electronics maker. They’re the most profitable non-US tech company. But there has been a soft spot in their sales. They’re getting crushed in the phone wars by Motorola’s RAZR. The RAZR’s runaway success is putting the hurt on Samsung, and the other phone makers.

Samsung sold 26.3 million mobile phones in the second quarter, down from a record 29 million in the first. The profit margin in the handset division fell to 9.5 percent from 10 percent in the first quarter and 12 percent a year earlier.

It’s been an interesting earnings season so far for the telecom equipment heavyweights. The industry is becoming one of “mega-hits”, almost like the Hollywood blockbuster system. Right now, the RAZR is king at the box office.