A lot of information has come out in the last few days about the top mobile phone manufacturers. There is great information that I hope to capture here of the industries winners and losers. Who is winning? Will it be Apple, Samsung, LG, or BlackBerry? You’ll have to continue reading to find out!
For LG the G5 is not a winner or a loser yet in the smartphone industry. It’s more of a break even. The company increased their overall marketing expenses on promoting their new flagship phone. Devices like this can make or break a fiscal year, depending on their success. The LG G5 sales are going much slower than anticipated and the company did not give a figure for overall G5 sales. LG still has a way to go to break even, but it is possible. Right now they are on a rocky start with a $132 million loss on the LG G5. While they did not say this, my thoughts are that they are facing steeper competition from Apple and Samsung, who are really establishing a strong base in the mobile industry.
Clearly, this one is a winner. While not included in yesterdays earning’s report, Apple has sold over 1 billion iPhones to date. While their overall sales have declined in the last quarter, they are still posting some investor pleasing numbers.
“We never set out to make the most, but we’ve always set out to make the best products that make a difference…Thank you to everyone at Apple for helping change the world every day.” – Tim Cook
It looks like BlackBerry is making their final attempt to remain relevant with the release of a new Android smartphone, but they are putting less than needed effort into promoting the device. It comes with their formerly innovative software, which now is more or less bloat-ware. Their new phone is the DTEK50 and is basically a cheap smartphone that sells for $300. This signals to me that they are basically giving up. They are desperate to have a hit and win, but right now, they are the strongest industry loser. They announced that they are giving the failing division till September. This makes purchasing the device a risky choice. If they close up, where will you get device support.
No matter which way you slice it, BlackBerry is drowning. The US Senate recently announced that they will no longer use BlackBerry smartphones. This was shortly after their super duper encrypted handset was cracked this year.
Samsung is a winner, obviously. They have strong competition against Apple and are selling a ton of devices. They just posted $12 billion in revenue with profits increasing by 5% each quarter. This last quarter was Samsung’s most profitable quarter in two years. This is showing strong growth, stability, and clearly a win for this manufacturer.