Handset Profitability
Kind of interesting to look at the profitability of the big handset manufacturers which are in order Nokia, Motorola, Samsung, LG and Sony Ericsson. All of these shipped more than 50M units last year.
For Nokia there results are and they even have a great spreadsheet
| Euro 1000s | 2Q06 | |
| Revenues | 5,875 | |
| Gross Profit | 1,738 | 30% |
| R&D | 315 | 5.4% |
| S&M | 412 | 7% |
| G&A | 19 | 0.3% |
| Other | 13 | |
| Operating Income | 979 | 16.7% |
For Motorola for three months ended April 1:
| 1Q06 | 1Q05 | ||
| Revenue | $6400 | $4144 | 45% |
| Operating Income | $702 | $440 | 11-10% |
For Samsung and a nice three year summary for 2005-2004 in their Summary
| in Billions of Won | 2005 | 2004 | 2003 |
| Revenue | 20914 | 20729 | 15303 |
| Operating Income | 2480 | 3097 | 2817 |
| Operating Margin | 11.9% | 14.9% | 18.4% |
For Sony Ericsson shows similar margins:
| In Euro 000s | 2005 | 2004 |
| Revenue | 7268 | 6525 |
| EBIT | 486 | 514 |
| EBIT Margin | 6.6% | 7.9% |