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Mobile Handset Sales Grow in 2009

January 31, 2010

Global mobile phone sales rose 10% year over year and 11.3 percent last quarter according to two research firms, Strategy Analytics and IDC.

Strategy Analytics said global handset shipments reached 324 million units last quarter, which represented a 10% gain over the same quarter in 2008.

Nokia, Samsung, and LG held the top spots in global market share during the quarter, with Samsung creeping up on Nokia’s 39.8% market share. Strategy Analytics found that Samsung shipped 69 million phones globally in Q4, a company record that was up 31% over the year before quarter. Likewise, and not surprisingly, Apple shipped a record 8.7 million iPhones during the fourth quarter and grabbed a 2.7% hold of the global phone market. Motorola said yesterday that it estimates it holds a 3.7% share of the global phone market.

2009 4Q Global Handset Shipments And Market Share (Units in millions)

Vendor 4Q09 4Q Mkt Shr 3Q09 3Q Mkt Shr
Nokia 126.9 39.1% 108.5 37.4%
Samsung 69.0 21.3% 60.2 20.7%
LG 33.9 10.5% 31.6 10.9%
Sony Ericsson 14.6 4.5% 14.1 4.9%
Motorola 12.0 3.7% 13.6 4.7%
Others 68.0 21.0% 62.2 21.4%
Total 324.4 100.0% 290.2 100.0%

Source: Strategy Analytics

Research firm IDC offered a similar outlook on the global market by stating that phone sales grew 11.3% in the fourth quarter. It said vendors sold 1.13 billion phones worldwide during the year, which was down 5.2 percent from 2008. Despite a flat market in Asia and a decreasing one in Latin America, sales in North America and Western Europe increased year over year. The firm also listed Nokia, Samsung, and LG as the market leaders with Nokia maintaining a 38.7% market share, Samsung a 17.1% share, and LG with an 8.8% share. The report said Motorola and Sony Ericsson lost market share.

Top Five Mobile Phone Vendors, Shipments, and Market Share, Q4 2009 (Units in Millions)

Vendor

4Q09 Shipment Volumes

4Q09 Market Share

4Q08 Shipment Volumes

4Q08 Market Share

4Q09/4Q08 Growth

1. Nokia

126.9

39.0%

113.1

38.7%

12.2%

2. Samsung

68.8

21.1%

52.8

18.1%

30.3%

3. LG

33.9

10.4%

25.7

8.8%

31.9%

4. Sony Ericsson

14.6

4.5%

24.2

8.3%

-39.7%

5. Motorola

12.0

3.7%

19.2

6.6%

-37.5%

Others

69.1

21.2%

57.4

19.6%

20.4%

Total

325.3

100.0%

292.4

100.0%

11.3%

Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 28, 2009

The Mobile Decade

January 4, 2010

The passing decade in the cellular market featured overwhelming growth in the penetration of mobile phones and outstanding breakthrough in their capabilities. Ten years ago, there were about 700 million mobile subscribers, while today there are about 4.6 billion, representing a global penetration rate of 67%. Out of the 1,136,401 mobile phones that were shipped in 2009 (according to Ovum estimations), 181,276 were smartphones, representing 16% of the global market. Most of these smartphones are equipped with a large TFT display (preferably touchscreen), 3.5G and WiFi connectivity, GPS, camera, Bluetooth and more. Smartphones today come with a variety of applications, such as a Web browser, email client, navigator and most importantly, an app store that allows the user to download applications that were developed by 3rd party developers.

The mobile phones of 2000 seem pre-historic in comparison with the modern smartphones of 2009. 10 years ago we had 2G phones, which enabled voice calls and SMS with limited interoperability between different networks. They had a small monochrome display which was capable of displaying few lines of text and simple graphics. They had few built-in applications, such as an alarm clock, calculator and primitive games (Snake!). These applications were provided by the device manufacturer and there was no way in which 3rd party developers could develop apps for these phones. Personal Device Assistant (PDA) represented a different class of mobile devices in those years. The popular PDAs, running operating systems such as Palm OS and Windows CE, offered an SDK for application developers. However, these devices were not connected to a wireless network, so the applications were bound to an off-line mode. During the course of the following years, mobile phones and PDAs have converged into smartphones.

In November 2000, Ericsson R380, the first Symbian phone was released. However, this phone was not open for 3rd party application developers. In the same year, Nokia introduced the 9210 Communicator. It was running Symbian OS 6.0 and was one of the first smartphones with an open operating system.

In 2001, another major breakthrough occurred with the announcement of the first GPRS phones. GPRS, a 2.5G cellular network technology, introduced packet switched data over GSM. It enabled mobile applications to access the internet through the cellular network. The first connected application was the WAP Browser, which initially provided limited access to the Internet, mostly within the walled garden of the operator.

In the same year, the first mobile phones with MIDP 1.0 were announced. These phones had a built-in Java Micro Edition (J2ME) run-time environment that enabled the development and deployment of applications for mass-market mobile phones. This technology changed the rules of mobile applications development, as developers no longer needed tight relationship with device manufacturers. The first deployments of J2ME-enabled phones were by non-GSM operators such as LG Telecom, NTT DoCoMo and Nextel. The first GSM phones with MIDP 1.0 included devices such as Motorola Accompli 008 and Siemens SL45i.

In 2002, Nokia introduced the first S60 phone, the 7650. This phone included new features that were not seen in the GSM market before, such as color display, VGA camera and MMS. It supported native application development with the S60 SDK as well as J2ME applications. In the same year, RIM introduced the Blackberry 5810. This was the first Blackberry device for GSM/GPRS networks. Originally a two-way pager, this device has evolved into a smartphone and quickly gained popularity, especially in the business sector. Another smartphone platform that has emerged at the same time was Microsoft’s Windows Mobile OS with the introduction of Orange SPV that was manufactured by HTC. This phone was running Microsoft Smartphone 2002, which was based on the Windows CE core and featured a removable SD card. Another platform that debuted in 2002 was Qualcomm’s BREW, which enabled the development of applications for BREW-enabled devices, mostly in the CDMA market.

In 2003, J2ME has been adopted by all major device manufacturers, while many mobile phones with MIDP 1.0 were introduced, especially in the GSM market. In the same year, mass market commercial 3G services were introduced, and enabled a wide range of mobile applications.

In 2004, J2ME has been upgraded with the introduction of MIDP 2.0. This was a major step forward, which opened new possibilities for application developers. One of the first phones that supported MIDP 2.0 was Motorola V600. In the same year, the first cellular phones with WiFi support were introduced. One of these phones was HTC Blue Angel that was released under several brand names.

In 2005, Motorola released the RAZR V3, the popular clamshell phone that sold more than 110 million units over the RAZR’s four-year run, and brought Motorola to second place in the mobile phone market behind Nokia. Unfortunately, Motorola failed to repeat this success and lost its market share dramatically during 2008.

In 2006, 67% of all smartphones shipped worldwide were running the Symbian OS, and most of them were Nokia’s S60 phones. In the same year, Nokia announced the N95, which became extremely popular since its release in 2007.

In 2007, Apple released the iPhone, and sold 6.1 million units over five quarters. Although these numbers are relatively small, the iPhone started a trend with its revolutionary multi-touch UI and swept the entire market. The iPhone SDK was officially announced in 2008, and allowed developers to develop native applications for the iPhone and iPod Touch. Apple has redefined the value chain by creating the App Store and allowing developers to easily sell their applications directly to end-users without the mediation of operators. The application gold rush has begun as the number of apps in Apple’s app store grew rapidly, which led to the launch of many other application stores.

In 2008, Google entered the arena with its open-source, Linux-based OS for mobile devices – Android. Unlike Apple, Google released the Android SDK to developers before the first device was shipped. Google also launched the Android Market for distributing Android apps. The first Android phone was T-Mobile G1, which was manufactured by HTC. Many other manufacturers jumped on the bandwagon and announced Android devices, including Samsung, Motorola, LG and Sony Ericsson. Although Nokia reached a market share record of 40% during 2008, its dominance in the smartphone market was in jeopardy. In an attempt to challenge Android, Nokia acquired 100% of Symbian shares and announced the open Symbian Foundation.

In 2009 Palm made a comeback with the Pre, running the new Linux-based OS, webOS (not be mistaken with the old Palm OS). Nokia probably realized that Symbian is not attractive enough, and released the N900, running the Linux-based Maemo OS. Samsung joined the Linux camp by releasing two Linux Mobile (LiMo) phones for Vodafone. Samsung that supported numerous smartphone platforms eventually decided that it needs its own proprietary platform and announced bada, yet another open mobile platform…

As the decade ends, we are witnessing an increasing number of smartphones running on many different platforms. Time will tell which of these platforms will prevail.

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Motorola’s Android App Store Coming Soon

December 14, 2009

Motorola is getting ready to launch its own Android application store, called SHOP4APPS. SHOP4APPS is accessible both from a Web browser and from a free mobile client called MotoAppstore (still in the testing phase).

The upcoming Android app store will feature a MyLocker section (where you can check your download history), automatic notifications when new versions of the applications are launched, and the ability to re-download/transfer apps.

Verizon Launches Two Android Phones

November 6, 2009

Verizon Wireless launches its first two Android-powered smartphones: Motorola Droid and HTC Droid Eris. Motorola Droid is the first Android smartphone to feature the version 2.0 platform. A successful launch is regarded by many as critical to Motorola’s future success, as the company attempts to regain market share.

LG and Samsung Break New Records in Mobile Phone Sales

October 31, 2009

The mobile phone market showed slight signs of recovery in Q3 2009, as 290.5 million cell phones were sold during the quarter, according to Strategy Analytics, or 287.1 million units, according to IDC.

All five major handset vendors sold more phones in Q3 than in Q2, save for Motorola, which slipped to fifth place, previously occupied by Sony Ericsson.

Samsung and LG, the two South Korean giants, both broke new records. Samsung shipped more than 60 million phones in a quarter for the first time, so it now controls more than 20% of the market, as expected. LG shipped only 31.6 million units, but it is its highest number to date.

Global Mobile Handset Shipments and Marketshare – Top 5 Vendors (Units in Millions) – Strategy Analytics

Vendor Q3 ‘08 Q4 ‘08 2008 Q1 ‘09 Q2 ‘09 Q3 ‘09
Nokia 117.8 113.1 468.4 93.2 103.2 108.5
Samsung 51.8 52.8 196.6 45.8 52.3 60.2
LG Electronics 23.0 25.7 100.8 22.6 29.8 31.6
Sony Ericsson 25.7 24.2 96.6 14.5 13.8 14.1
Motorola 25.4 19.2 100.1 14.7 14.8 13.6
Others 60.1 58.8 214.8 53.7 58.9 62.5
Total 303.8 293.8 1177.3 244.5 272.8 290.5

Top 5 Mobile Phone Vendors, Shipments, and Market Share, Q3 2009 (Units in Millions) – IDC

Vendor

3Q09 Shipment Volumes

3Q09 Market Share

3Q08 Shipment Volumes

3Q08 Market Share

Year-on-Year Growth

Nokia

108.5

37.8%

117.9

38.6%

-8.0%

Samsung

60.2

21.0%

52.0

17.0%

15.9%

LG Electronics

31.6

11.0%

23.0

7.5%

37.4%

Sony Ericsson

14.1

4.9%

25.7

8.4%

-45.2%

Motorola

13.6

4.7%

25.4

8.3%

-46.4%

Others

59.1

20.6%

61.5

20.1%

-3.9%

Total

287.1

100.0%

305.4

100.0%

-6.0%

Motorola Droid will be Running Android 2.0

October 19, 2009

BGR got their hands on Motorola Droid, which will be launched by Verizon Wireless on November 6th. This is expected to be the first device running Android 2.0. Boy Genius is extremely excited about this phone, and claims that it is the fastest Android device and the most impressive phone since the iPhone.

Motorola is Abandoning LiMo and WinMo

October 9, 2009

Motorola VP of Software and Ecosystem, Christy Wyatt, has abandoned her seat on the LiMo Foundation Board. In order to make sure its new position is clear, Motorola took things one step further by changing its association with LiMo from that of a founding member to lowly associate member.

The company also put out the following unambiguous statement: “At this time [Motorola] feels that the Android platform gives it a richer, more consistent foundation with strong support for the ecosystem and developer community.”

Few days ago, Wyatt disclosed that Moto’s relationship with Windows Mobile was temporarily going on hold. Motorola is apparently going to release only Android-based smartphones in the near future.

Source: MobileCrunch

Motorola Announces First Android Phone

September 11, 2009

Motorola announced its first Android-powered device, the Motorola CLIQ (MB200). The CLIQ will be available exclusively in the US from T-Mobile later this fall.

Motorola CLIQ features MOTOBLUR, an innovative solution that manages and integrates communications – from work e-mail to social networking activity. Updates to contacts, posts, messages, photos and more are streamed together and synced from sources including Facebook, Twitter, MySpace, Gmail, and work and personal e-mail. MOTOBLUR automatically delivers these updates to the home screen in easy-to-view streams so there is no need to open and close different mobile applications to keep up with the latest content.

Additional CLIQ features include a 3.1-inch HVGA touch-screen display, a 5 megapixel auto focus camera with video capture and playback at 24 frames per second, a 3.5mm headset jack, a music player with pre-loaded Amazon MP3 store application, Shazam, iMeem Mobile, and a pre-installed 2GB microSD memory card with support for up to 32 GB of removable memory.

Gartner: Smartphone Sales Grew 27% in Q2 2009

August 12, 2009

Worldwide mobile phone sales totalled 286.1 million units in the Q2 2009, a 6.1 % decrease from the second quarter of 2008, according to Gartner. Smartphone sales surpassed 40 million units, a 27% increase from the same period last year, representing the fastest-growing segment of the mobile-devices market.

Worldwide Mobile Terminal Sales to End Users in 2Q09 (Thousands of Units)

Company

2Q09

Sales

2Q09 Market

Share (%)

2Q08

Sales

2Q08 Market

Share (%)

Nokia

105,413.3 36.8 120,353.3 39.5

Samsung

55,430.2 19.3 46,376.0 15.2

LG

30,497.0 10.7 26,698.9 8.8

Motorola

15,947.8 5.6 30,371.8 10.0

Sony Ericsson

13,574.2 4.7 22,951.7 7.5

Others

65,260.2

23.0 57,970.6 19.0

Total

286,122.7

100

304,722.3

100

Note: This table includes iDEN shipments but excludes ODM-to-OEM shipments.
Source: Gartner (August 2009)

Nokia maintained its leadership position, but its portfolio remained heavily skewed toward low-end devices. Its flagship high-end N97 smartphone met little enthusiasm at its launch in the second quarter of 2009 and has sold just 500,000 units in the channel since it started to ship in June, compared to Apple’s iPhone 3G S, which sold 1 million units in its first weekend.

Samsung and LG both had a very strong second quarter of 2009 with sales of 55 million units and 30.5 million units, respectively. Samsung’s touchscreen devices, qwerty phones and smartphones drove sales in mature markets, and Gartner expects it will continue to gain market share in the second half of 2009 to close the gap with Nokia. Gartner expects LG to keep moving into lower-tier devices to drive growth in emerging markets and be well-positioned to take advantage of China’s 3G rollout as it can deliver good-value-for-money devices. Motorola’s sales of 15.9 million units were slightly better than expected, but its presence has rapidly concentrated on the Americas, and it has lost most of its share of the Western European market, where it sold fewer than 1 million units in the second quarter of 2009. Most operators and customers will be waiting for Motorola’s new Android-based products planned for the fourth quarter of 2009.

Sony Ericsson’s market share dropped 2.8% points year-on-year in the second quarter of 2009 but its volume dropped 41%. Although the market environment was challenging, Gartner attributes Sony Ericsson’s poor performance to its uncompetitive range of handsets.


Worldwide Smartphone Sales to End Users in 2Q09 (Thousands of Units)

Company

2Q09

Sales

2Q09 Market

Share (%)

2Q08

Sales

2Q08 Market

Share (%)

Nokia

18,441.0

45.0

15,297.9

47.4

Research In Motion

7,678.9

18.7

5,594.2

17.3

Apple

5,434.7

13.3

892.5

2.8

HTC

2,471.0

6.0

1,330.8

4.1

Fujitsu

1,249.0

3.0

1,071.5

3.3

Others

5,688.2

13.9

8,085.8

25.1

Total

40,962.8

100.0

32,272.7

100.0

Note: For HTC, Gartner counts only the company’s own-branded devices, including the G1.
Note: Totals may not add to 100.0 percent due to rounding.
Source: Gartner (August 2009)

In the smartphone OS market, Symbian held 51% share, down from 57% a year ago, while RIM and Apple grew their shares year-on-year. Android’s share was just under 2% of the market and more Android-based devices will come to market in the fourth quarter of 2009, intensifying competition in the smartphone OS market, particularly for Symbian and Windows Mobile. Microsoft’s share continued to drop year-on-year to account for 9% of the market in the second quarter of 2009.

Q2 Handset Sales

July 27, 2009

269 million handsets were shipped in the second quarter of 2009, according to ABI Research.

Samsung (19.4%) and LG (11.1%) did particularly well. LG notched up a 2.2% increase in percentage points, Samsung, 1.45%. Nokia staged a remarkable swing in fortunes to achieve a 1.67% percentage point increase to 38.3%. Nokia is doing all it can to get a number of smartphone models into the market. It will be interesting to see how Nokia’s market share holds up in 2H-2009, as Samsung and LG have carried out major refreshes to their smartphone product lineups. Sony-Ericsson experienced a 0.56% percent point reduction in its market-share while Motorola and RIM also saw contractions.


Top 5 vendors:

Rank Vendor Million Units Shipped Market Share
1 Nokia 103.2 38.36%
2 Samsung 52.3 19.44%
3 LG 29.82 11.09%
4 Motorola 14.8 5.5%
5 Sony Ericsson 13.8 5.13%
6 Others 55.1 20.48%