“LG in its summer results saw its mobile group worsen despite its shift to higher-end Android models,” Electronista reports.
“he group lost $128.47 million, more than twice what it had lost in the spring,” Electronista reports. “It didn’t say what had triggered the shortfall or how many phones it had shipped, although it has regularly seen its basic phone sales drop faster than it can compensate with smartphones.”
Electronista reports, “The firm’s cellphone drop might raise the possibility of LG being overtaken by Apple. It has already been losing share rapidly. Apple saw its own drop to 17.07 million iPhones as buyers waited for the iPhone 4S, but it saw a milder dip than it forecast where LG’s situation has exacerbated.”
Read more in the full article here.
Don’t worry they have it all figured out: they’ll make it up on volume ;;-)
Giving product away to temporarily (and artificially) pump up your market share numbers has a disastrous effect on your bottom line.
Giving it away works for Amazon and Jeff Bozo.
And Gillette and Schick. (leading American razor companies)
It even has a name: the razor and blades business model
http://en.wikipedia.org/wiki/Razor_and_blades_business_model
Which has nothing to do with why Ruck Goldsta is getting scalped.
Idiot.
Flawed metaphor the android phone manufacturers are trying to sell phones. i.e. they are giving away thier primary product.
It works for amazon (who are willing to take a loss to sell you content) because the tablet is not thier primary product. However, selling your main product (in the case a cell phone) for a loss to “claim marketshare, is never a good idea. (just ask all the US PC box assemblers how that “we’ll make it up in volume” thing went for them)
Google has the pac-rim electronics firms dancing on a wire, making next to nothing, while they reap huge profits from the market (similar to what MS did to the PC manufacturers) I would feel sorry for them but they appear to be dishonorable thieves, so… may they reap what they have sown. (and the same goes for the backstabbing thieves who run google.)
This chart shows why Android won’t save them: http://theunderstatement.com/post/11982112928/android-orphans-visualizing-a-sad-history-of-support
Why do Android customers put up with this crap?