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Samsung Q4 drops because of handset prices

07 февраля 2007
Following the footsteps of Nokia and Motorola, the world's No. 3 handset player, Samsung, was also hit by the dramatic drop in handset prices as its Q4 profit fell 8 percent. It's clear a trend is emerging: the lack of upside in end market demand is leading to increased price competition. Further aggravating the situation is the trend toward lower-priced handsets in emerging markets.

has tried to stay out of the cheap phone game, resisting the temptation to offer phones under $50 in places like India and China. But the fourth quarter was tough and sales of its handsets shifted toward lower-priced models. We'll have to see if Sony Ericsson, which has steadfastly worked to stay out of the cheap handset market, had any pressure in the fourth quarter.



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