World mobile phone sales exceed expectations: Gartner

Mumbai: Worldwide mobile phone sales totaled 104.3 million units in the third quarter of 2002, a 7.8 per cent increase from the same period last year. Dataquest Inc., a unit of Gartner, Inc, said in a press release that this growth exceeded expectations for the industry.

"This is only the second time ever that the third quarter has realized mobile terminal sales volume in excess of 100 million units," said Bryan Prohm, senior analyst with the Mobile Communications Worldwide research group for Gartner Dataquest. "The most encouraging development was that each of the six principal geographic regions tracked by Gartner Dataquest recorded a sequential increase in demand."

"The positive momentum generated during the third quarter of 2002 seems well positioned to carry over into the fourth quarter of 2002, when a wave of innovative mobile terminal models are expected to become widely available."

Nokia sprinted further ahead of the competition in the third quarter, its worldwide market share growing to 35.9 per cent. Nokia gathered over 50 per cent market share in Western Europe, as well as in the larger Europe, Middle East and Africa (EMEA) regional market.

Worldwide mobile terminal sales to end-user estimates for 3Q02 (thousands)

Company	3Q02 Sales	3Q02 Market Share (%)	3Q01 Sales	3Q01 Market Share (%)	Growth (%)
Nokia	37,447	35.9	32,997	34.1	13.5
Motorola	15,030	14.4	14,682	15.2	2.4
Samsung	11,063	10.6	7,260	7.5	52.4
Siemens	8,145	7.8	7,215	7.5	12.9
SonyEricsson**	4,999	4.8	7,184	7.4	-30.4
Others	27,572	26.4	27,361	28.3	0.8
Total	104,256	100.0	96,698	100.0	7.8

*Note: Ericsson sales only in 3Q01. Sony 3Q1 sales included in others.
Note: This table does not include iDEN sales to end-users.
Source: Gartner Dataquest (November 2002)

Motorola saw its share decline, largely because of critical delays in the availability of two new models - the T720 and C330 - which were expected to ship in volume in the early part of the quarter.

"Motorola looks increasingly exposed to uncertainty in China and the United States - as these two countries now account for more then 50 percent of Motorola's quarterly sales to end-users," said Ann Liang, industry analyst with the Mobile Communications Worldwide research group for Gartner Dataquest in Asia/Pacific. "Motorola's best opportunity to realize significant market share growth during the coming quarters lies in developing a stronger presence in the GSM markets of EMEA and Asia-Pacific, minus China."

Samsung had another strong quarter, as its market share surpassed 10 per cent. Gartner Dataquest analysts said at this pace, Samsung could achieve over 11 per cent market share in the fourth quarter and be above the 10 per cent mark for the full year.

In mature markets, such as Western Europe, mobile phone manufacturers are facing more challenges in motivating users to purchase new phones.

"Mass-market acceptance of emerging handset features such as color screens and polyphonic sound may well prove to be merely short-term catalysts for replacement sales," Prohm said. "While double-digit growth is returned to the mobile terminal market, vendors will need to be increasingly flexible and even revolutionary in their approach to the market in order to secure the loyalties of an ever more fickle end-user, and carriers with shifting priorities."