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Global mobile phone shipments to reach one billion units this year

Global mobile phone shipments grew an impressive 31%, to reach 229 million units during Q1 2006, according to the l...


April 21, 2006  


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Global mobile phone shipments grew an impressive 31%, to reach 229 million units during Q1 2006, according to the latest research from Waltham, Mass.-based Strategy Analytics.

Neil Mawston, associate director of the firm’s Wireless Device Strategies (WDS) service said global handset shipment growth is being driven largely by emerging markets such as India.

“We expect strong demand to continue throughout the coming months and we forecast that full-year sales will reach a record one billion units worldwide by the end of 2006 — this represents 22% cent growth from 817 million in 2005,” he said.

Market leaders in the first quarter included Nokia, Motorola, Samsung, LG Electronics and Sony Ericsson.

Chris Ambrosio, director of the service, said “it is important to note that strong shipment growth is not equating to healthy profits for all vendors.

“Motorola was the star performer in terms of volumes, but the growing need to compete in low-cost markets adds fuel to the theory that it has reached its profits-ceiling. Samsung and LG are also both feeling this profit pressure.

“This is a strong illustration of the need for design and platform balance in order to maximize profits as a global competitor. Otherwise, profits rest in niche products aligned to emerging mobile data demands as demonstrated in Sony Ericsson’s recent strong quarter.”

Further information is available at www.strategyanalytics.com.