Samsung's Loss, Moto's Gain

[Fire14]

By Reuters
URL: http://news.zdnet.com/2100-1035_22-5538168.html

Motorola may have gotten a Christmas present from rival cell phone maker Samsung--the Asian company was slow to beef up its product portfolio in time for the holiday season, giving Motorola's newest feature-rich phones an edge, analysts said.
South Korea-based Samsung Electronics on Friday reported a slump in fourth-quarter profit. Its margins have been hurt by a price war with Finnish rival Nokia , which analysts said may be recovering lost ground.

But more important to Motorola, which typically doesn't compete on price, Samsung has been losing favor with some service providers, who demand a constant flow of new features to maintain consumer interest.

In the fourth quarter alone, Motorola unveiled about 20 new phones worldwide in an attempt to sharpen its design edge. At the top of the list was the company's ultra-slim Razr V3, heavily marketed in recent months. The model is billed as the world's thinnest flip phone, weighing in at 3.35 ounces.

Analysts said that publicity has helped draw consumers to Motorola's overall portfolio, which also includes more affordable models such as the V265, which features a camera, advanced speech recognition and the ability to download games.

Analysts have criticized Samsung's sluggishness in moving new phones to market. "We think Samsung will be plagued with problems until they get their new phones out," said American Technology Research analyst Albert Lin.

"Customers like Verizon are offering less Samsung," Lin said. "Samsung's problems are going to be something that ultimately helps Motorola and Nokia."

The change marks a reversal of fortune for Motorola, which a year ago stumbled in getting camera phones--then a hot new trend--to market in time for the holidays, which helped the competition.

Samsung said it expects margins to bounce back in the first quarter as it sells new handset models at higher prices.

For now, its weakness could help Motorola beat Wall Street estimates when it reports fourth-quarter earnings on Tuesday.

"I think that they (Motorola) are going to have a good quarter," said Loop Capital Markets analyst Ren Zamora, who rates Motorola shares "outperform." "I still think this holiday selling season was strong. People like Motorola and Nokia and Sony Ericsson had opportunities to gain."

Analysts on average expect Motorola to report earnings of 24 cents a share, up from 20 cents a share earlier. Sales are seen rising to $8.45 billion from $8.02 billion a year ago.

Motorola declined to comment.

Motorola's share of the global handset market stood at 13.4 percent at the end of the third quarter, according to Gartner Dataquest, placing it third worldwide. Nokia, the market leader, had roughly 30.9 percent, while Samsung had 13.8 percent.

Shares of Motorola ended 8 cents higher at $17.03 on the New York Stock Exchange on Friday.

[Bugwart]

I do not think that there is any question that Motorola will have a good quarter based on increase in Market share.

However, Samsung's loss of margin in their handset business may be virus that all suppliers have caught. Samsung is the first handset maker to report last quarter's results.

This Reuters' article is based on analysts' comments. It is best taken with a big grain of salt. If analysts were always right, we could all make huge amounts of money by following their advice.

[Etorres777]

I prefer Motorola over Samsung.

[azcellphonejunkie]

Originally Posted by Etorres777

I prefer Motorola over Samsung.

Going from a Samsung E105 to a Motorola V600, I can say that I prefer Moto to Samsung strictly for the RF benefits. The V600 compltely out performs the E105, and I wouldn't go back to it if you paid me. The Nokia 6010 that I had for a few days worked great as well. For the GSM phones, I think Nokia and Motorola really have a great phones, and make the GSM technology worth the money!

[MOTOhooligan]

I prefer Motorola to Samsung as well but since my primary cell is a Samsung I must admit, I like it quite a bit. That isn't to say I'm not trying to get my hands on a v600 as soon as I can but the e315 has given me no cause to complain so far.

[azcellphonejunkie]

Originally Posted by rancidhooligan

I prefer Motorola to Samsung as well but since my primary cell is a Samsung I must admit, I like it quite a bit. That isn't to say I'm not trying to get my hands on a v600 as soon as I can but the e315 has given me no cause to complain so far.

One of my biggest complaints about the E105 was the size. I like something that feels like a phone in my hand. The E105 was so small I felt like I was holding a toy sometimes. The V600 is a good weight (too heavy for some) and very sturdy. The E105 felt to plasticky (I know I just made it up). However, it was a good phone, and for someone looking for a recommendation for something that is small with the clamshell design, I would recommend it.

[Fire14]

I had the 426 for 1 week & re-sold it, I didn't like the phone at all. I have alway's been a Nokia fan & user, but bought a V400 5 months ago & have been fairly happy with it, I think the V551 would be a better phone & look forward to either another Moto or Nokia when i migrate. I kinda like the E317 but I haven't heard enough about it to make a decision on it.

[azcellphonejunkie]

Originally Posted by Fire14

I had the 426 for 1 week & re-sold it, I didn't like the phone at all. I have alway's been a Nokia fan & user, but bought a V400 5 months ago & have been fairly happy with it, I think the V551 would be a better phone & look forward to either another Moto or Nokia when i migrate. I kinda like the E317 but I haven't heard enough about it to make a decision on it.

The 426 and E105 were basically the same phone, just no external display on the 426. I understand the loyalty to Nokia very much. They keep the style the same on most models, and so people who are used to the setup can move to another phone and not have to relearn a menu system.

[Fire14]

I think Nokia's downfall are the phone's are getting ugly & no Clamshell phones. They do make it easy to move from 1 phone to another & have excellent Rf. I do have to say Moto's Rf have improved from everything i have been hearing & I find them to be comfortable to use as well.

[azcellphonejunkie]

Originally Posted by Fire14

I think Nokia's downfall are the phone's are getting ugly & no Clamshell phones. They do make it easy to move from 1 phone to another & have excellent Rf. I do have to say Moto's Rf have improved from everything i have been hearing & I find them to be comfortable to use as well.

Very comfortable. The price tag on some of the upper end phones (V600, Razr, ect...) is what gets to people. If you are willing to spend the money, you can get a very good phone!

[MOTOhooligan]

Originally Posted by azcellphonejunkie

Very comfortable. The price tag on some of the upper end phones (V600, Razr, ect...) is what gets to people. If you are willing to spend the money, you can get a very good phone!

My preferred method is to wait until the next version of the same phone comes out and then get the older model. (Basically, when the v625/v635 comes out and people upgrade, that's when I shall obtain my v600... should be tons of people getting rid of them at that point.)

[azcellphonejunkie]

Originally Posted by rancidhooligan

My preferred method is to wait until the next version of the same phone comes out and then get the older model. (Basically, when the v625/v635 comes out and people upgrade, that's when I shall obtain my v600... should be tons of people getting rid of them at that point.)

I like that method! I would love to get a Razr, but who knows when the next generation of that one will come out!

[MOTOhooligan]

Originally Posted by azcellphonejunkie

I like that method! I would love to get a Razr, but who knows when the next generation of that one will come out!

Yeah... that's true. Introducing the v4 RAZR coming Q4 2006! I like the getting a new* phone one generation out method a lot better than my old method. That was the wait until you can get the top of the line phone from three years ago for cheap method. Needless to say the Motorola Timeport P8197 to Samsung e315 change was a huge leap. Color screen, WAP, camera... amazing!

*New to me, that is.

[azcellphonejunkie]

Originally Posted by rancidhooligan

Yeah... that's true. Introducing the v4 RAZR coming Q4 2006! I like the getting a new* phone one generation out method a lot better than my old method. That was the wait until you can get the top of the line phone from three years ago for cheap method. Needless to say the Motorola Timeport P8197 to Samsung e315 change was a huge leap. Color screen, WAP, camera... amazing!

*New to me, that is.

For what it's worth though, they will come out with new phones...it's just a matter of time. I think the V3 is a great looking phone, and maybe when the price is down to like $300, I may look into it. Until then, I love my V600 in all it's glory!

[Tony E!]

Originally Posted by azcellphonejunkie

For what it's worth though, they will come out with new phones...it's just a matter of time. I think the V3 is a great looking phone, and maybe when the price is down to like $300, I may look into it. Until then, I love my V600 in all it's glory!

If you search you should be able to find the Razr @ $300 or better even now, no need to wait.

[Fire14]

Originally Posted by rancidhooligan

My preferred method is to wait until the next version of the same phone comes out and then get the older model. (Basically, when the v625/v635 comes out and people upgrade, that's when I shall obtain my v600... should be tons of people getting rid of them at that point.)

I also wait for them to come out with newer phones, and let these tried & tested older phone models to come down in price, besides being cheaper, you will find out if they have any problems & what fixes the manufacture has done to fix it.

[twopiece]

I think that I will live and die using a Motorola ever since my first Startac with Sprint.

[azcellphonejunkie]

Originally Posted by Tony E

If you search you should be able to find the Razr @ $300 or better even now, no need to wait.

Where would you recommend getting one? All the Cingular stores are still about $450-$500. The resellers like Signals have them down to $399...

[MOTOhooligan]

Originally Posted by twopiece

I think that I will live and die using a Motorola ever since my first Startac with Sprint.

I thought that too. I figured when I signed up with T-Mobile I'd just get the v300 but the e315 had pretty much the same features and was $20 with a $20 mail-in rebate. I couldn't really argue getting a v300 for $199 or whatever they were, when I could get the e315 essentially for free. I still love Moto, though.