Samsung Sees Mobile, LCD Profits Drop

Samsung Electronics has reported its quarterly profits have dropped 42 percent, amid falling cell phone prices and added pressure from rival Nokia. One year ago the number two mobile phone manufacturer was riding high on $2.5 billion in profits. But Samsung says it aims to sell 100 million phones this year, compared to 86 million in 2004.

Despite the growing sales, the company was forced to lower prices due to increased competition from mobile industry leader Nokia. Samsung, however, expects numbers to rebound once it rolls out higher priced phones later this quarter. Samsung's profits were also hurt by falling demand in LCDs, with uptake of flat screen televisions slower than expected.