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Global Mobile Phone Shipments to Reach 1 Billion Units in 2006
Posted: 20-Apr-2006 [Source: Strategy Analytics]

[Strategy Analytics reports global handset shipment growth is at its highest rate for almost two years.]

Boston -- Global mobile phone shipments grew an impressive 31 percent year-over-year, to reach 229 million units during Q1 2006, according to the latest research from Strategy Analytics. Following this strong performance, Strategy Analytics upgrades its global mobile phone shipment forecast to 1.00 billion units for the full-year 2006, as described in the newly published "Q1 2006 Global Handset Market Share Update Report."

Neil Mawston, Associate Director of the Wireless Device Strategies (WDS) service at Strategy Analytics said, "Total global handset shipment growth of 31 per cent annually, driven largely by emerging markets such as India, is at its highest rate for almost two years. We expect strong demand to continue throughout the coming months and we forecast that full-year sales will reach a record 1.00 billion units worldwide by the end of 2006 - this represents 22 per cent growth from 817 million in 2005."

Chris Ambrosio, Director of the Wireless Device Strategies (WDS) service, added, "It is important to note that strong shipment growth is not equating to healthy profits for all vendors. Motorola was the star performer in terms of volumes, but the growing need to compete in low-cost markets adds fuel to the theory that it has reached its profits-ceiling. Samsung and LG are also both feeling this profit pressure. This is a strong illustration of the need for design and platform balance, in order to maximize profits as a global competitor. Otherwise, profits rest in niche products aligned to emerging mobile data demands, as demonstrated in Sony Ericsson's recent strong quarter."

Other findings from Strategy Analytics' Q1 2006 Global Handset Market Share Update include:

* The share gap between Nokia (33 per cent) and Motorola (20 per cent) stands now at 13 points, down from 19 points in Q1 2002;

* LG opened up a 1 point share gap over Sony Ericsson at the cost of profitability, struggling to balance growth with carrier-customization demands.

Top 5 Vendors 2006 Global Shipments and Market Share Estimates

Global Sell-In (M) Q106

Nokia 75.1

Motorola 46.1

Samsung 29.0

LG 15.6

Sony Ericsson 13.3

Others 49.8

Total 228.9

Gobal Share Q106

Nokia 32.8%

Motorola 20.1%

Samsung 12.7%

LG 6.8%

Sony Ericsson 5.8%

Others 21.8%

Total 100.0%

Total Growth YoY 31.4%

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