Nokia, Samsung surge in mobile phone market

By Suzanne Deffree, News Editor -- 10/25/2007

While the mobile phone industry’s growth pales in comparison to previous quarters, it is still healthy, showing double-digit gains in shipments in Q3, according to two independent research firms.

While a report released today from IDC pegs Q3 vendors shipments at just more than 289 million units, a year-over-year gain of 13.8 percent, Strategy Analytics reported shipments grew a more modest 12 percent year-over-year to reach 285 million units.

"On a worldwide scale, the mobile phone market continued to post positive results in the third quarter, even as vendors struggle to balance revenue and profitability," said Ramon Llamas, research analyst with IDC's Mobile Devices Technology and Trends team, in a statement. "On the one hand, emerging markets have required vendors to provide low-cost handsets, which boost volume, but reduce revenue and sometimes profit per device. On the other hand, mature markets have an appetite for higher-end handsets that can generate more revenues and profit. The leading vendors have been successful at balancing features and price for the distinct markets in a highly competitive space."

IDC further noted that while growth in the overall mobile device industry has slowed over the past few quarters, the converged mobile device segment continues to grow several times faster than traditional phones, and accelerated to more than 50 percent year-over-year growth in Q3.

Of course, some industry players did better than others in the quarter. While both firms reported shipment and market share gains for top ranking Nokia and Samsung, Motorola slipped in the quarter as it continued to struggle with its mobile business. (See Q3 data from IDC and Strategy Analytics below.)

“Samsung and Nokia continue to surge ahead,” Neil Mawston, associate director at Strategy Analytics, said in a statement. “Samsung is the fastest-growing top-five brand, with 47 percent annual shipment growth. Meanwhile, Nokia has easily the highest operating margin among all megavendors, with a 22 percent rate in its handset division.”

Strategy Analytics added that the rise of Samsung and Nokia is coming partly at the expense of Sony Ericsson and Motorola. “Samsung is rapidly picking up share in 3G feature phones, where Sony Ericsson has seen much recent success, while Nokia continues to outsell Motorola in the entry-tier GSM segment of emerging markets,” Bonny Joy, Analyst at Strategy Analytics, said in the firm’s statement. 


Q3 Data

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