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Tuesday, September 9, 2008

* Nokia increases market share in mobile phone business


"Worldwide sales of mobile phones to end users in the third quarter of 2007 reached 289 million units, a 15% increase from the same period last year," says Gartner, Inc.Nokia's mobile phone sales to end users totalled 110.2 million units reaching a market share of 38.1% in the third quarter of 2007. This quarter, Nokia not only exhibited the highest year-on-year market share increase, but also raised operating margins thanks to effective cost management and global distribution strategy. This was achieved despite the average price of its phones falling from €90 to €82. Other points to note are the success of the Korean manufacturers, Samsung and LG, and the sad decline of America's Motorola. Gartner says:Motorola's sales into the channel remained weak and, with limited surplus stock, sales to end users were not enough to maintain its No. 2 position. Motorola's market share dropped 7.6 percentage points from the third quarter of 2006, relegating the vendor to the No. 3 position. "Motorola today is a pale version of the company it was a year ago," [Carolina Milanesi, research director for mobile devices research at Gartner] added. Although the Razr2 was well received and accounted for 900,000 of the overall sales, Motorola needs a much stronger portfolio to return to its former market share. Gartner reckons sales of mobile phones in Western Europe reached 47.2 million units, with 45m sold in North America, 24.5m in India and 13.1m in Japan. Average penetration in Western Europe is 115%: everywhere except France, there are more mobile phones than people.

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