| High-end phone market defies economic woes |
Aug. 04, 2008
Mobile phone shipments from top-tier handset vendors grew 15 to 22 percent year-over-year, to 301 million units, according to ABI Research. The figures put the market on pace for 1.8 billion units this year, or 13 percent growth, despite general economic "woes" in other markets.
ABI identified Asia, the Middle East, Africa, and South America as key emerging markets helping to drive growth for mobile phone vendors. Yet, established markets also contributed to economic growth. While unit sales were flat, customers paid more for "coveted higher-end handsets and smartphones," ABI said.
Jake Saunders, VP of research, stated, "If there is an economic slowdown, no one bothered to tell the mobile device buying public."
Top vendor market share percentages listed by ABI were:- Nokia, 40.3%
- Samsung, 15.2%
- Motorola, 9.3%
- LG, 9.2%
- Sony Ericsson, 8.3%
The largest U.S. mobile phone vendor, Motorola, held onto its third-place position, after falling last year from the number two spot. And, says ABI, it risks being passed by LG "by the end of 3Q, 2008."
Yet, the same day ABI released its summary findings report, Motorola reported a "positive cash flow" of $204 million for the second quarter of its financial year, ending Jun. 28. It said it shipped 28.1 million handsets, for revenues of $3.3 billion, about 22 percent down year over year but a significant sequential reversal.
   
Motorola's MOTO Q 9c
(l-r) Alltel, Sprint, U.S. Cellular, and Verizon editions
(Click on any to enlarge)
Motorola credited its success in part to launching "ten new products to key markets around the globe" during its quarter. While apparently none of the models was based on Windows Mobile, the company's first quarter had encompassed the March release of the MOTO Q 9c (above). This Windows Mobile 6-based phone quickly became available from four different carriers -- Alltel, Sprint, U.S. Cellular, and Verizon -- for as low as $100.
Samsung SCH-i900 Omnia
(Click image for further information) |
Second-place finisher Samsung offers a variety of Windows Mobile devices, including the SCH-M470, a phone that was introduced in April and supports HSUPA (high-speed uplink packet access). The company's newest device is the high-end SGH-i900 Omnia, announced in June. This phone boasts 8GB or 16GB of flash storage -- a record for a Windows Mobile device -- a 3.2-inch widescreen QVGA display with proprietary "TouchWiz" user interface, a 5-megapixel camera with electronic flash, GPS, WiFi, and an FM receiver.
Sony Ericsson Xperia X1
(Click image for further information) |
As for fourth-place vendor Sony Ericsson, that company's first Windows Mobile phone was announced in February, but has not yet gone on sale. The Xperia X1 is yet another high-end device, featuring a 3-inch touchscreen display with 800 x 480 resolution, yet another custom user interface, a slideout QWERTY keyboard, an optical joystick, and FM and GPS receivers.
Research director Kevin Burden said, "There is admittedly turmoil in the global economy, but the mass market's fascination with getting the latest and greatest handset shows no sign of abating."
In an earlier report, ABI forecast a 33 percent marketshare for smartphones in the near term.
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