Samsung and LG face uphill battle in global phone war

August 28, 2006 – 11:12 am

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The phone wars are being fought everyday, and at stake is the sales revenue from just under 1 billion phones being sold annually. This is a battle of the Goliaths, and there are no Davids. Both Samsung and LG are selling units, but there woes have mounted and some experts question their validity. Much of their problem is that they’ve been focusing on selling higher cost units, and Motorola, Nokia, and Sony Ericsson have found more success selling the lower cost units which help build great volume.

Samsung’s biggest woes can be described the Motorola Razr:

RAZR RULES Just two years ago, Samsung was poised to overtake Motorola’s No. 2 spot, but its market share is now half the size of Motorola’s, with 26.3 million phones sold against its U.S. rival’s 51.9 million in the April-June quarter.

Samsung so far has had no real answer to the Razr. LG’s problems are a bit worse, because they’ve lost money for two quarters.

The main thing working for Motorola and against Samsung and LG? Innovative handset design has been signaled out as the cause. Both companies have releases coming out this month, so we’ll keep a close eye on if their design has improved or not. It will need to in order to stay alive in today’s day and age.

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