Mobile phone market on road to recovery

Peter Dinham
Sunday, 01 November 2009 11:55

Your IT - Mobility

Of the top five mobile vendors – Nokia, Samsung, LG Electronics, Sony Ericsson and Motorola – IDC reported  that Nokia experienced continued pressure during 3Q09 in its devices and services group, with the company reporting a 20 percent decrease in revenue, ASP decline, and a shortage of components across its product portfolio.

“Even its tight hold on the converged mobile device category was loosened as the company cited a market share decrease from 41% to an estimated 35%. This did not keep Nokia from enhancing its services arm, acquiring cellity, Doplr, and assets from Plum Ventures.”

According to IDC, Samsung reached a new record by shipping more than 60 million units in a single quarter, which it said puts the company well within reach of achieving its goal of shipping 200 million units in 2009.

Of the other three, IDC said LG Electronics breached the 30 million unit mark for the first time in its history, and nearly half of those units sold for less than $100, making them “handsome purchases for carriers.”

Sony Ericsson marked Hideki Komiyama's final quarter as president of the company, IDC said, and reports that during his tenure, Sony Ericsson realised “improved operational efficiencies and cost reduction to increase profitability.” However, says IDC, “the lack of entry-level devices during the economic recession left the company vulnerable as its competitors were able to keep up with shifting demand.”

IDC reports that Motorola slipped to fifth place, but in the process the company reported progress in its restructuring campaign. “In addition to reducing its operating losses for the second consecutive quarter, Motorola announced its much anticipated Android-powered converged mobile device, the CLIQ/DEXT, as well as its new DROID. The company announced that it would shift its resources towards converged mobile devices and away from traditional mobile phones in 2010, a move the company hopes will improve gross margins and reduce operating losses.”