Rating: life is tough
By Louise Wells
A Gartner report published today says mobile phone sales totalled 251 million units in the third quarter of 2006, a 21.5% increase on the same period last year. Asia/Pacific was the fastest growing region this quarter; India and China in particular rose dramatically and drove overall growth.
As a result of the strong quarter, Gartner raised its mobile phone sales forecast to reach 986 million units in 2006,with 281 million units in the fourth quarter of 2006.
“Although sales of replacement handsets during the third quarter, in the more mature markets were not as buoyant as we have been accustomed to they were offset by continuing momentum in sales to first-time buyers in emerging markets,” says Carolina Milanesi, principal analyst for mobile terminals research at Gartner, based in the UK. “We have also started to see increasing sales of replacement models in some emerging market, which helped push up total sales in the third quarter.”
Ms Milanesi added, “In a market where players compete on price, technology and strategic partnerships, it is impossible to believe that life is not getting much tougher for the smaller vendors. Nokia, Motorola and Samsung accounted for 68% of worldwide mobile sales in the third quarter of 2006.”
Nokia retained its worldwide number one position with 35.1% market share; gaining 2.6% compared to the same period last year, Indeed, Nokia increased its market share in all regions expect North America, and also regained the top spot in Latin America after losing it to Motorola a year ago.
While Motorola increased its worldwide market share in the third quarter of 2006, the company experienced challenges in some regions. It lost the top spot in Latin American and its number two position in Western Europe and in the Eastern Europe, the Middle East and Africa region. The Krzr is struggling to enjoy the same reception that greeted the Razr, and the Motofone may not be available until 2007. Christmas might not be so jolly for Motorola in some markets.
After a shaky first half of the year, Samsung recorded a healthy third quarter with sales accounting for more than 30 million units. Thanks to products such as the D900 and E900, Samsung was able to regain second place in the markets in Western Europe, and Eastern Europe, the Middle East and Africa. “Samsung has won consumers back thanks to finding a more personal approach to design and features and by embracing the trend for slim devices,” Ms Milanesi says.
“Sony Ericsson had an exceptional quarter selling 19.4 million units in the third quarter of 2006 and gaining 1% year-on-year,” Ms Milanesi adds. “The company’s success was a result of building a wider portfolio of successful products rather than counting on a single product. It also focused on better planning to avoid the supply problems that have limited its potential in the past.”
The success of LG’s KG800 Chocolate started to melt away this quarter, leaving the manufacturer further behind Sony Ericsson in the worldwide ranking. LG needs to expand its portfolio quickly to move up from fifth place.
BenQ declared that it was stopping payments to its German subsidiary, BenQ Mobile, at the end of September 2006, barely a year after its formation from Siemens' handset business. BenQ Mobile in Germany has filed for insolvency. In the three months before, it recorded sales of slightly more than 6 million units.
So the pie gets ever bigger, but unless you’re Nokia it seems, getting a share gets harder all the time.
See http://www.gartner.com/media_relations/asset_61507_1575.jsp for more info.