Mobile phone sales
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Mobile phone sales report
"The mobile phone market is showing the first signs of improvement since the onset of the economic crisis," says Ramon Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends team. "During the third quarter, we saw a number of channels promoting older mobile phone at significantly lower prices. For many, this was enough to spur demand and push volumes higher. Now that we have moved into the fourth quarter, mobile phone vendors are setting the stage for further gains by launching their flagship cell phones to meet pent-up demand."
Mobile phone market recovers from economic crisis
"Although some regions in the world are still reeling from problems associated with the economic crisis, the third quarter served to cleanse the channel while providing the signs of stability necessary for additional improvement in the fourth quarter," says Will Stofega, research manager of IDC's Mobile Devices Technology and Trends team. "Despite the outlook for a slower economic recovery, we think vendors should increase R&D spending as well as engage in a broad portfolio review in order to ensure the best competitive stance as the market recovers."
Mobile phone sales in North America
The North American market posted mixed results for 3Q 2009. The United States posted positive results, with converged mobile devices and prepaid handsets once again driving growth. Meanwhile, the Canadian mobile phone market declined for the third straight quarter despite double-digit converged mobile device growth. The tepid Canadian economy, shrinking traditional phone segment, and inventory clear out by the largest service providers led to the market's weaker three-month performance.
Mobile phone sales in Latin American
The Latin American mobile phone market did not experience a strong recovery in 3Q 2009 as expected. Longer replacement cycles, anemic user demand, and decreased handset subsidies in select countries all negatively impacted shipment volumes during the quarter. Challenges are expected still as Mexico, one of the key countries in Latin America, will experience a 'perfect storm' of tax increases for telco services, personal taxes, and value-added taxes, which will all negatively impact phone sales.
Mobile phone sales in Western Europe
The Western European market showed strong signs of recovery. For the first time this year, both traditional mobile phone and converged mobile device shipments increased year over year as well as sequentially. The price erosion from converged mobile phones and low-end handsets contributed to this vitality along with the new feature phones from LG and Samsung targeting mid-tier segments. In CEMA, the market continued to recover from the previous three months but was still depressed in comparison with a year ago. Nokia lost ground in converged mobile devices while LG gained on rivals with double-digit growth as total market volumes continued to decline.
Mobile phone sales in Asia Pacific
The third quarter was a weaker than anticipated in Asia / Pacific, with total shipments down slightly from a year ago. Key emerging markets, including China, India, and Indonesia, all posted slight declines, signaling that recovery may take longer than expected. Still, demand for converged mobile devices was strong, posting double-digit increases year over year.
Top 5 Mobile phone vendors
Nokia experienced continued pressure during 3Q 2009 in its cell phones and services group. Nokia reported a 20% decrease in revenue, ASP decline, and a shortage of components across its product portfolio. Even its tight hold on the converged mobile device category was loosened as the company cited a market share decrease from 41% to an estimated 35%. This did not keep Nokia from enhancing its services arm, acquiring cellity, Doplr, and assets from Plum Ventures.
Samsung mobile phones
Samsung reached a new record by shipping more than 60 million units in a single quarter. This puts the company well within reach of achieving its goal of shipping 200 million units in 2009. Driving growth was a combination of touchscreen-enabled and QWERTY messaging phones going into developed markets as well as key models within emerging markets. Looking to 4Q 2009, Samsung is poised to launch strategic converged mobile phones running on Android and Linux.
LG mobile phones
LG Electronics breached the 30 million unit mark for the first time in its history. Nearly half of those units sold for less than $100, making them handsome purchases for carriers. Still, the company was vulnerable in Korea and North America. Moreover, the lack of converged mobile devices and handsets for prepaid services prevented LG from capitalizing on growth opportunities in these segments. LG mobile expects to launch Android and Windows converged mobile devices in 4Q 2009, while boosting its profile in India and China, improving its competitive position in the near term.
Sony-Ericsson mobile phones
Sony Ericsson marked Hideki Komiyama's final quarter as president of the company. During his tenure, Sony Ericsson realized improved operational efficiencies and cost reduction to increase profitability. However, the lack of entry-level phones during the economic recession left the company vulnerable as its competitors were able to keep up with shifting demand. That trend appears to continue as a list of mid-range and high-end mobile phones are set to launch in 4Q 2009 and Bert Nordberg, head of Ericsson Silicon Valley, assumes Komiyama's position.
Motorola mobile phones
Motorola slipped to fifth place, but in the process the company reported progress in its restructuring campaign. In addition to reducing its operating losses for the second consecutive quarter, Motorola announced its much anticipated Android-powered converged mobile phone, the Motorola CLIQ/DEXT, as well as its new Motorola DROID. The company announced that it would shift its resources towards converged mobile devices and away from traditional mobile phones in 2010, a move the company hopes will improve gross margins and reduce operating losses.
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