Smartphone growth leads the way in weakening mobile market

Stan Beer
Monday, 02 February 2009 05:52

IT Industry - Market

Kevin Burden, practice director for mobile devices at ABI Research noted that the biggest players Samsung (+2.7%),  Nokia (+1.8%) and LG ( +1.5%) all gained market share in 2008. However, Nokia's share declined in the second half and the decline accelerated in 4Q.

“While those three manufacturers dominate the global market, it probably would not come as a surprise to many that RIM (Blackberry) and Apple (iPhone) boldly moved up in the market-share stakes with growths of 0.9% and 0.8% respectively,” said Burden

According to ABI Research, despite the tough economic climate, RIM and Apple are likely to continue their march to the consumer centre-stage but it in a way that does not drop their handset ASPs to bargain basement levels. HTC was  late entering the consumer smartphone market with the Android-based G1, but the vendor has significant contracts in place (such as T-Mobile) which should play to the its advantage in 2009.

The biggest loser in 2008 was Motorola with –5.1% drop in market share in 2008 (8.3%). Little consolation that this was an improvement on 2007 in which the firm suffered a –7.8% drop.

Although quite as dramatic, Sony-Ericsson also stumbled in the mid part of 2008 with a -0.7% contraction in market-share.

The outlook for 2009, according to ABI Research is anything but rosy. However, it should come us welcome news for the likes of RIM and Apple.

"Sharp revisions to country-by-country economic conditions in the space of just three months will likely mean that a YoY handset shipment contraction of between -5% and -10% is becoming a distinct possibility," said ABI's Saunders.

"What is certain is that handset vendors will be trying to convince everyone they should own a smartphone. Welcome to the Year of Smartphone."

Further info can be had from ABI Research.