The smartphone market competition has increased considerably over the past few years and it has now been reported that these two leading Korean handset manufacturers are now starting to feel the heat.
The handset makers are currently struggling to keep up with the fast-moving smartphone industry, which has left behind the demand for feature phones of which these two have traditionally been key players.
The top five smartphone vendors at present are Nokia, Apple, Motorola, HTC and Research In Motion according to market researchers IDC.
Samsung and LG are somewhat behind these five giants in the smartphone handset stakes, despite news that the two firms are performing well in other areas.
LG saw its handset operating margin plunge to 0.9 percent in the first quarter, and said that it saw no immediate recovery of its smartphone business. The sales of these handsets remain a concern for the future as newer and more technologically advanced models are being released all the time.
If these two do not catch up soon, it may be too late in this competitive and still-growing market segment. Both of these manufacturing innovators are expected to release new models during this year but the battle is set to be fierce if they want to stay with the likes of Google and Apple who have a strong hold on software and content services.