Mobile phone shipment growth slowing, but still double-digit in 2008

By Suzanne Deffree, Managing Editor, News -- 1/24/2008

Nokia now owns more than 40% of the global share of mobile phone shipments, placing it firmly at the top of a market with healthy, but slowing, growth.

According to research released from Strategy Analytics today, global mobile phone shipments grew a modest 12% year over year in 2007, to reach 1.12 billion units. Nokia had a strong Q4 and gained 0.8% sequentially to reach more than 40% share for the first time ever in the quarter (see tables below).

“During the fourth quarter of 2007, 332 million mobile phones were shipped globally,” Neil Mawston, a director at Newton, Mass.-based Strategy Analytics, said in a statement. “Nokia was the star performer. Despite fierce competition from ambitious rivals such as Samsung and Apple, Nokia still managed to gain ground last year. A famous brand, attractive handset lineup, strong technology portfolio and the industry’s best logistics have enabled Nokia to achieve this impressive milestone.”

Meanwhile, Motorola registered 12.3% global share in Q4, down sharply from 22.4% in Q4 2006. The research company attributed the decline to the Schaumburg, Ill.-based company’s failure to replace its popular Razr model.

To be sure, Motorola Wednesday reported significant losses for 2007 because of its struggling mobile devices business, with CEO Greg Brown admitting that the unit’s recovery “will take longer than expected and [that] there is a lot more work to be done.” On the same day, the company announced an expanded supplier relationship with Qualcomm to include next-generation UMTS 3G chipsets. Motorola will design the Qualcomm chipsets into certain UMTS 3G handsets beginning at the end of 2008 and in 2009.

On the flipside, Strategy Analytics noted gains for Apple and its iPhone in Q4. The company shipped 2.3 million units of popular handset for a 0.6% share in Q4 -- growth that the research company called “healthy,” but that was not enough to bring Apple into Strategy Analytics top vendor ranking.

However, in no way is that holding Apple back. Indeed, the company reported its highest revenue in its history this week, with sales of $9.6 billion up 35% year over year for the December quarter, in large part due to its success with the iPhone. Strategy Analytics said it expects Apple to be among the world’s top 10 vendors by the end of 2008.

While mobile phone shipment growth is set to continue in 2008, the research company reported that growth will slow this year.

“We expect the economic environment to be tougher this year and forecast slower growth of 10%, for 1.24 billion units worldwide, in 2008,” Bonny Joy, an analyst at Strategy Analytics, said in the statement.

Global mobile handset shipments in millions of units and market share

Shipments	Q4 '06	2006	Q4 '07	2007
Nokia	105.5	347.5	133.5	437.1
Samsung	32.9	113.7	46.4	161.2
Motorola	65.7	217.4	40.9	159
Sony Ericsson	26	74.8	30.8	103.4
LG Electronics	17	64.4	23.7	80.5
Others	45.9	184.1	56.7	184.3
Total	293	1001.9	332	1125.5

Source: Strategy Analytics

Market share percentage	Q4 '06	2006	Q4 '07	2007
Nokia	36	34.7	40.2	38.8
Samsung	11.2	11.3	14	14.3
Motorola	22.4	21.7	12.3	14.1
Sony Ericsson	8.9	7.5	9.3	9.2
LG Electronics	5.8	6.4	7.1	7.2
Others	15.7	18.4	17.1	16.4

Source: Strategy Analytics

For data from Strategy Analytics on the Q3 2007 mobile phone market, see “Nokia, Samsung surge in mobile phone market.”

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