IDC has released its latest mobile handset market share figures and found that "a combination of marketing efforts, large volumes of new devices introduced earlier in the year, well-stocked channels, and enticing plans from carriers factored heavily into shipment activity during the quarter. For the full year 2005, worldwide mobile phone shipments totaled 825.5 million units, a 16.7% increase over the 707.3 million shipments in 2004. Shipments of converged mobile devices reached 55.6 million units for 2005, an increase of 165.3% over 2004."
Ryan Reith at IDC said, "Historically, the fourth quarter produces the highest mobile phone shipments of the year due to the numerous promotions driven by carriers to clear the channels during the holiday rush. Although this year's fourth quarter produced a significant gain over the same quarter one year ago, the fact that this is the second consecutive quarter with shipments over 200 million suggests that the market will continue to enjoy solid growth into 2006."
"The worldwide mobile phone market has become populated with numerous devices that are focused on utilizing the high speed networks springing up around the world. The evolution in technology advances has allowed vendors to release devices that are capable of working on networks like EV-DO and UMTS. In the fourth quarter we saw phones that offered on-demand music services, mobile TV, and downloadable video clips from all of the major vendors," Reith added.
Javier Hernandez-Marquez at IDC Mexico noted the boom "has benefited the shipment activity to developing markets." He said, "Within Latin America, shipments are expected to reach record levels, pushing full year shipments to 105.3 million units, a 33.7% increase from 2004 shipments. The combination of entry-level handsets with prepaid plans has allowed for a tremendous influx of shipments into Latin America, making wireless communication an attractive and economically manageable option to potential consumers. With the added features of color screens and embedded cameras, consumers have found additional utility beyond telephony. The market for mid-range and high-end handsets featuring digital music, Bluetooth, and multi-mega-pixel digital image capture has likewise grown in popularity in Latin America, particularly as upgrade options. Unlike most entry-level phones, these handsets are combined with regular plans, and have been increasing."
Here are some vendor highlights:
- Nokia consolidated its position as the leading global mobile phone vendor in the final quarter of 2005 with record shipments of 83.7 million units representing a sequential increase of 25.7% and year on year growth of 26.6%. The S60 platform continued to gain significant traction in high end consumer segments, buoyed by the launch of the N70 whilst its comprehensive portfolio ensured a strong presence across low to high end segments in global markets.
- With a record number of shipments in the fourth quarter, Motorola once again solidified its position as number two in worldwide mobile phone shipments, showing a 15.5% increase over 3Q05 and a 40.6% increase over the same quarter a year ago. Still buoyed by the success of its RAZR platform, the company has expanded its flagship product to include models for EV-DO, and UMTS networks along with new colors and form factor modifications.
- With shipments increasing only 1.5% over 3Q05 but 28.9% year-over-year, Samsung maintained the 3rd position in global mobile phone shipments. Samsung bulked up its portfolio of music capable phones, devices with streaming video, and a global converged mobile device in the i830. Accounting for much of the company's high-end sales was the D600, and EDGE-based slider phone launched in multiple regions.
- LG reported 16.2 million mobile phones shipped in the fourth quarter, gaining a slight edge over Sony Ericsson for the 4th position in global shipments. This was a 4.3% increase from 3Q05 and a 16.5% increase in shipments year-over-year. LG announced the release of its ‘Black Label’ line focusing on the personal expression of the user. These, along with its lineup of 3G devices, boosted shipment levels for the company.
- Sony Ericsson capped off a record year of shipments with 16.1 million units shipped in the fourth quarter, marking a 27.8% year-over-year increase and a 15.8% gain over the previous quarter. In addition, Sony Ericsson further closed the gap against LG, going from 1.6 million units last quarter to just 100,000 units this quarter. The company continued to see success with its lineup of Walkman branded phones, and its offerings toward the middle and entry-level tiers likewise improved.
(Unit shipments are in millions) Top 5 Vendors, Worldwide Mobile Phone Shipments and Market Share Rank | Vendor | 4Q05
Shipments | 4Q05
Market Share | 4Q04
Shipments | 4Q04
Market Share | Growth
4Q05/4Q04 |
1 | Nokia | 83.7 | 34.1% | 66.1 | 32.2% | 26.6% |
2 | Motorola | 44.7 | 18.2% | 31.8 | 15.5% | 40.6% |
3 | Samsung | 27.2 | 11.1% | 21.1 | 10.3% | 28.9% |
4 | LG Electronics | 16.2 | 6.6% | 13.9 | 6.8% | 16.5% |
5 | Sony Ericsson | 16.1 | 6.6% | 12.6 | 6.1% | 27.8% |
| Others | 57.3 | 23.4% | 60.2 | 29.2% | -4.8% |
| Total | 245.2 | 100.0% | 205.7 | 100.0% | 19.3% |
Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 26, 2006
(Unit shipments are in millions)
Top 5 Vendors 2005, Worldwide Mobile Phone Shipments and Market Share Rank | Vendor | 2005
Shipments | 2005
Market Share | 2004
Shipments | 2004
Market Share | Growth
2005/04 |
1 | Nokia | 264.9 | 32.1% | 207.6 | 32.2% | 27.6% |
2 | Motorola | 145.9 | 17.7% | 104.5 | 14.8% | 39.7% |
3 | Samsung | 102.9 | 12.5% | 86.5 | 12.2% | 19.0% |
4 | LG Electronics | 55.0 | 6.7% | 44.4 | 6.3% | 23.8% |
5 | Sony Ericsson | 51.2 | 6.2% | 44.5 | 6.0% | 20.4% |
| Others | 205.6 | 24.9% | 221.8 | 31.4% | -7.3% |
| Total | 825.5 | 100.0% | 707.3 | 100.0% | 16.7% |
Source: IDC Worldwide Quarterly Mobile Phone Tracker, January 26, 2006
Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.
