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Technology Stocks : Nokia Corp. (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Eric L who wrote (6202)	7/24/2009 11:39:19 AM
From: Eric L	Read Replies (1) \| Respond to of 9255

The Koreans Check In: Samsung & LGE Results (Handsets) • Samsung Slides here (Corrected URL): tiny.cc • LG Slides here: lge.com\|MENU_23185.jhtml Both companies had very good quarters. Forex is very much in play. They have both been riding a tailwind because of the relatively weak Won. Both's guidance and the analysis of the Asian analysts that follow them, comment on the possibility of a strengthening of the Won against the Euro and USD which could alter their competetive advantage and change teir fortune somewhat. Using Nokia's estimate of global sell-in temporarily and until Motorola reports, sales and share look like this ... Q2'09 Units Share ======= ======= Nokia 103.2m 38.5% Samsung 52.3m 19.5% LG 29.8m 11.1% Sony Ericsson 13.8m 5.1% Other 68.9m 25.7% ====== ====== 268.0m 100.0% I. Samsung Handsets • Handset Shipments: 52.3 million units (QoQ +14%, YoY +14%) • ASP: $124 : €88 (QoQ +2%+) • Sales increase in both developed and emerging markets due to enhanced product lineup · Europe/US: Strong sales of touch-phones and messaging-phones · Emerging markets : Steady sales increase of strategic models --> Slim design and differentiated functions (color screen, camera) • Continued to outperform market growth • Maintained double-digit OP margin, due to strong mid/high-end sales and cost saving despite increased marketing expenses. --> Op margin was 10%, down from 11% in Q1 Samsung's Business Outlook (Industry): • Q3 Industry Demand: QoQ +5% range increase --> Developed market: Strong seasonal demand & Carrier promotion --> Emerging market: Seasonal demand and expand 3G service in China • Expect continued demand increase in smart-phone and touch-phone • Expect 2009 handsets sales down ~10% YoY from ~1.2 billion to 1.1 billion units but see H1 at 47% v. H2 at 50% while split was 50%/50% in 2008 Samsung's Own Business Outlook: • Handsets : Expect steady Margin/Sales (M/S) growth through strengthened product line-up --> ’09 shipment target : 200 million plus units --> Expansion of current strategic products in the global market & Launching of 2H flagship models (Jet, Galaxy, Star, Omnia II). --> Growth expected in developed market (US, Europe) and emerging market where 3G service is expanding. <II. LG Handsets: • Shipments hit 29.8M units, up 32% QoQ. (8% growth YoY) • Operating Margin up to 10.6% in Q2 from 3.9% in Q4'08 and 10.6% in Q1'09 • Launched new models: Arena, enVTouch/ enV3 to N. America, etc. • Continued growth in emerging markets (China, MEA, CIS, etc) • 30% M/S in Korea from upsurge in sales of Cookie, Lollipop, etc • Profitability: Improvement was led by product mix centered on new model launches and solid growth from existing mid to high-tier models. Also, cost cutting activities improved profitability. LGE's Business Outlook (Industry): • Market: 7% growth QoQ or 280M units expected due to seasonality. (down 6% YoY) LGE's Own Business Outlook: • Steady growth and slight decline in profitability is anticipated QoQ due to marketing investment and expansion of low-tier models to emerging markets. • New models: 4th Black Label Series, GD900 Crystal (transparent keypad), GM730 (smartphone) • Double digit sales growth expected in India, China, CS America and CIS • Strengthen competitiveness through efficient resource allocation and cost cutting activities ### - Eric -