How iPhone will hit rivals

South Korean phone makers Samsung and LG enjoyed a stellar start to 2008 but the launch of Apple's much-hyped new iPhone is set to dent their sales and profit margins later this year. A strong portfolio of phones helped LG Electronics' sales grow at almost four times the annual industry average in the first quarter, while Samsung Electronics expanded at twice the rate, data from Strategy Analytics showed. But the Korean companies could hit a speed bump in the coming months as the progressive global rollout of Apple Inc's third-generation (3G) iPhone shaves a few percentage points off their profit margins and crimps sales of their top models, analysts said. And it is not only the Korean giants who are likely to face iPhone challenge, but all smartphone manufacturers across segments