/ 1 August 2005

Nokia stays ahead as entry-level phones boost world sales

Nokia maintained its robust lead in the world cellphone market in the second quarter as sales of entry-level units boosted overall shipment numbers, a technology research house said on Monday.

IDC said global shipments of cellphones totalled 188,7-million units in the three months to June, up 16,3% from a year ago and 7,3% from the previous quarter.

Nokia, based in Finland, accounted for 60,8-million units or 32,2% of all shipments in the second quarter, nearly double the market share of its American rival Motorola, with 33,9-million units or 18%.

Next came South Korean manufacturers Samsung, with 24,4-million units or 12,9%, and LG electronics, with 12,1-million or 6,4%.

Sony Ericsson, a London-based joint venture between Japan’s Sony and Sweden’s Ericsson, was fifth with 11,8-million units or 6,3%.

Nokia posted 33,9% year-on-year growth in shipments, and 13% growth on a quarterly basis.

”Despite all the interest and excitement over cutting edge devices, there continues to be a demand for simple voice-only phones that appeal to broad customer segments, even in mature markets like North America,” said Ramon Llamas, research analyst for IDC’s Mobility Group.

Nokia and its rivals have been introducing sophisticated models with camera and other extra functions, but Llamas said entry-level phones address specific regional and customer needs.

”Although this helps volumes, it also puts downward pressure on average selling prices and vendor profitability,” he added in a statement.

Aloysius Choong, research analyst for IDC Asia Pacific in Singapore, said affordable handsets help sustain subscriber growth by reaching into the less-populated cities and rural regions of developing markets. – Sapa-AFP