Mobile phone
Worldwide mobile phone shipments were up nine per cent on the previous quarter

Mobile phone sales post 'healthy' growth

289 million handsets shipped worldwide during the third quarter

Written by Robert Jaques

The worldwide mobile phone market grew at a "healthy" pace during the third quarter of 2007 with vendors shipping a total of 289.1 million units, according to IDC.

The analyst firm's latest Worldwide Quarterly Mobile Phone Tracker report shows worldwide shipments up nine per cent from the previous quarter and 13.8 per cent from the same quarter a year ago.

Growth was driven by a combination of high-volume shipments of affordable handsets into emerging markets, and high-end feature-packed devices into mature markets.

The leading vendors improved revenues and profits, in some cases building on double-digit operating profit margins as they balanced their product portfolios.

"The worldwide mobile phone market continued to post positive results in the third quarter, even as vendors struggled to balance revenue and profitability," said Ramon Llamas, research analyst with IDC's Mobile Devices Technology and Trends team.

"On the one hand, emerging markets have required vendors to provide low-cost handsets, which boost volume but reduce revenue and sometimes profit per device.

"On the other hand, mature markets have an appetite for higher-end handsets that can generate more revenues and profit.

"The leading vendors have been successful at balancing features and price for the distinct markets in a highly competitive space."

Ryan Reith, senior research analyst for IDC's Mobile Phone Tracker, added: " Growth in the overall mobile device industry has slowed over the past few quarters.

"But the converged mobile device segment continues to grow several times faster than traditional phones, and accelerated to more than 50 per cent year-on-year growth in the third quarter.

"A wide selection of devices, combined with declining initial price points, have made this segment of the market an immense growth opportunity for manufacturers.

"At the same time, this space is attractive for the operators because these devices are often bundled with a data plan which means increased revenue per user."

Nokia posted its second consecutive quarter of 100-plus million units, and shipped more units than the next three vendors combined.

This accomplishment emphasises Nokia's size, but was described by IDC as " notable" since the company has been handicapped by component shortages.

Samsung marked its second consecutive appearance in the number two spot worldwide, while Motorola kept the number three spot for the quarter and emerged as the only leading vendor to post a negative year-over-year shipment delta.

Sony Ericsson held onto fourth place for the sixth consecutive quarter, and continued its string of quarterly double-digit operating profit margins while more aggressively building its presence within emerging markets.

See also:

reader comments

related articles

Apple iPhone

Special Report: Apple iPhone

All the latest news on Apple's iPhone 18 Dec 2007

 

Analysts predict bonanza for mobile anti-malware

Vendors urged to hook up with operators in bid to boost sales 30 Oct 2007

Firms rolling out core systems to road warriors

Company data now available anywhere 30 Oct 2007

Korea and Japan dominate mobile TV market

'Wake up to TV 2.0', operators and broadcasters warned 30 Oct 2007

Stolen mobiles blocked in 24 hours

Handset theft now pointless, claims Home Office 29 Oct 2007

Mobile Skype handset launches with 3

Free mobile Skype-to-Skype calls and instant messages 29 Oct 2007

Nokia has another cracking quarter

Fourth quarter sales reach €15.7bn 28 Jan 2008

Ongoing slide in handheld demand

Sixteenth consecutive quarter of falling demand as mobiles take a chunk out of the market 12 Feb 2008

Mobiles showing strong sales growth

Q1 global sales up 13.4 per cent 29 May 2008

latest news

Red Hat a good fit for Qumranet

Open source behemoth opens up Windows opportunities with acquisition of virtualisation specialist 05 Sep 2008

Infor praises partners

Software vendor outlines its channel vision at second annual EMEA partner summit in Marbella 05 Sep 2008

Version One and Accurate launch university push

Software vendors link arms to create integrated document and financial management offering for universities 05 Sep 2008

Most commented stories

poll

Stormy times ahead for PBX?

Stormy times ahead for PBX?

Will the credit crunch affect PBX takeup?

Previous poll results

In The Studio With CRN: Josh Claman, Dell

In an editorial coup for CRN, Josh Claman, vice president of EMEA channels at Dell, talks to CRN TV about the vendor's channel plans

CRN Fight Night bouts are LIVE!

ALL the bouts from CRN's first ever white collar boxing event at The Brewery in Chiswell Street, are now online in their full glory for CRN readers to watch.

events

CRN Golf Challenge 2008

CRN Channel Golf Challenge 2008

CRN's annual golfing day will this year be held on 16 September at a championship course in East Sussex

CRN Reseller Leadership Forum logo

CRN Reseller Leadership Forum

An exclusive channel conference from CRN, to be held over one action-packed day in September 2008

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Advertisement

White papers

Search white papers

Top categories