Mobile business revenue under pressure LG Samsung robs high-end TV profits

Absrtact: High-end TV has brought warm colors to Han's two-male transcripts, and has become a battleground for hegemony. Recently, Samsung and LG both issued a quarterly bulletin, Samsung operating profit reached 8, 49 trillion won (about 8.2 billion U.S. dollars), although the year-on-year decrease of 3.31%, but the chain Rose 2.14%,


high-end TV to Korea's two-male report card to bring warm, but also become the battlefield of hegemony. Recently, Samsung and LG both issued a quarterly bulletin, Samsung operating profit reached 8, 49 trillion won (about 8.2 billion U.S. dollars), although the year-on-year decrease of 3.31%, but the chain rise 2.14%,LG electronic operating profit year-on-year growth of 44%. Unlike the Dwarfs of Japan, which not only have the contribution of smartphones, the TV business is also a significant addition to the two. In fact, the competition in the mobile field is increasingly fierce, ultra-high-definition high-end TV for the two companies increasingly important, the two even in the ultra-high-definition television market to launch a price war to compete for the status of the lake.





Benefits High-end TV business





LG's first-quarter results were better than market expectations, hitting a two-year profit-strongest quarter, with operating profits up 44% per cent year-on-year, to 504 billion won (about $486.89 million). LG Electronics, now the world's second-largest maker of televisions, says the sales of big-screen televisions and lower material costs have boosted profits in the first quarter, while revenues from television will continue to grow in the second quarter.





Samsung Electronics When the quarter sales reached 53.68 trillion won, up 1.53% year-on-year, reduced by 9.45%, net profit of 7.57 trillion won, an increase of 5.86%, the chain increase of 3.74%. South Korea's IBK Securities analyst pointed out that Samsung Electronics in the quarter better than expected, on the one hand due to the increase in demand for cheap g alaxy equipment, on the other hand, it is likely that Brazil's World Cup has boosted television sales.





Although the color TV faces sales weakness, and even become a long-term loss of some Japanese enterprises baggage, but South Korean enterprises is clearly another scene. In the first quarter, LG Electronics's TV business earned 240 billion won, up from 11 billion won in the same period last year. LG Electronics is trying to solve the problem of weak demand for televisions by strengthening high-end products, such as the sale of ultra high definition TVs. Samsung in the field of television implementation of the machine sea tactics, Samsung China's relevant officials told reporters, Samsung in China, there are u H D products 30 variety, both high-end products, there is also the number of models, it is expected that the U-D high-end TV performance of the pull in the two quarter will be more obvious. Samsung is now selling eight consecutive titles in the Global television market.





LG and Samsung have been pushing U H D all this year, and Samsung Electronics and LG Electronics are embroiled in a U-T v price war to compete for the first growth in the fast-growing U H D TV market, according to Korean media. At the end of April, LG began selling its 49-inch U-D TV at a price of 2.9 million won. In response, Samsung Electronics launched a 40-inch high-definition television model, the price of 1.89 million won (about 11,500 yuan), which is the first Samsung Electronics launched the "1" price of the Super High-definition TV products. Samsung China officials said that this year's U-D product pricing itself is not very high, such as U h D 55-inch curved TV and last year's same size smart TV at the same level.





mobile business faces challenges





with the multi-line operation of the electronic enterprise, Samsung and LG each product line performance is different, but the mobile phone is undoubtedly one of the highlights. LG is responsible for smartphone business m C (M obilecom m unications) The division's first-quarter sales were 3.407 trillion won, operating losses of 8.8 billion won, and the division has lost three consecutive quarters, but the losses in the third and fourth quarters of last year, respectively, 79.7 billion won and 43.4 billion won, have fallen sharply in the first quarter of this year. Another giant, Samsung's Electronics mobile division, reduced its operating profit from 6.51 trillion won in the first quarter to 6.43 trillion won in the first quarter of this year. In the fourth quarter of 2013, the operating profit of the mobile sector was 5.47 trillion won. Samsung's electronic mobile division's operating profit rate remained unchanged at 19.8% from a year earlier. However, most analysts believe that the sector's operating profit rate will appear in the end of the year.





most of Samsung's profits come from mobile devices, but fierce market competition makes dominance more difficult. Samsung produced 89 million handsets in the first quarter of this year, still ranked first among all handset manufacturers. But Samsung's market share fell from 32% last year to 31% in the first quarter of this year, its first market share decline since the fourth quarter of 2009. Market organization Strategy A Nalytics executive Director N eil M aw ston said: "Samsung on high-end mobile phones to face the pressure from Apple, and in the middle and low mobile phones to accept the challenges of Huawei such mobile phone brands." ”





Samsung Electronics is reportedly trying to lower the price of the latest smart Model G Alaxy S5, which was sold globally earlier this month, but the escalation in prices caused by increased competition could put high-end smartphone profits under pressure all year. BernsteinResearch, a market-research agency, predicts that Samsung's electronics price of less than $200 trillion will rise from 45% last year to 51% this year. Meanwhile, the proportion of Samsung's high-end smartphones priced above $450 trillion will fall to 29% this year.





Korea K-B Securities investment company in the latest research report, as the smartphone market gradually intensified competition, and competitors in the price war, if the cost of spare parts is too high, it is likely to drag the Korean electronics giant's full-year profit, the appropriate cost reduction will be particularly important.