Friday, August 3, 2007

Nokia stars in handset market shakedown

LONDON -- Global mobile phone shipments grew a modest 11 percent year-on-year to reach 258 million units in the second quarter of the year, with Nokia cementing its leading position while Motorola slipped badly in the quarter, yielding second position to Samsung, according to Strategy Analytics.
Nokia took a record 39 percent share, having shipped 100.8 million units, and the market research group predicts the Finnish company will pass 40 percent global market share level in the second half of 2007.
The 258 million units represents only 4 per cent growth quarter-on-quarter, and is the second consecutive quarter since Q2 2005 that annual growth has been below the 20 percent mark.
The market research group predicts 283 million units globally for Q3 2007, for an annual growth rate of 12 percent, with demand form developing countries continuing to drive volumes.
Strategy Analytics (Milton Keynes, England) says inventory continued to be burned off during the second quarter quarter, and estimates 4 million units of excess were cleared from stockpiles. It adds demand remained healthy in emerging markets.
During the quarter Motorola's crisis deepened, as shipments plummeted to 35.5 million units (down from 45.4 million last quarter and thus only taking a 13.8 percent share) and margins fell.
Samsung staged a strong quarter to take second position for the first time, shipping 37.4 million units (14.5 percent), up from 34.8 million phones the previous quarter. It is said to have made particularly good progress in China and Western Europe.
The down-side is that ASPs at Samsung fell 5 percent sequentially, and operating margin slipped by 5 points, to 8 percent. "Samsung is marketing and pricing aggressively to expand its entry-tier product line," Strategy Analytics notes.
Sony Ericsson made up 10 percent of volumes and logged its best performance since the merger in 2001. LG also increased marketshare and profits and the market researchers say its effort to consolidate product platforms on an enhanced device portfolio is paying off.
Apple is said to have captured an insignificant 0.1 percent global share, shifting 0.3 million iPhones.
However, Strategy Analytics predicts Apple will push toward a 1 percent quarterly share by the end of 2007 and that it is well capable of shipping more than the 10 million units in 2008.
"Provided Apple can expand its distribution channels outside the US, with 3G products in Europe next on the list, Apple stands a good chance of becoming the worlds number 6 vendor by 2009, easily overtaking the likes of Panasonic, Sharp and Sagem along the way," the market research group suggests. -->