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.
Do you agree?
Have your say on this article