Record mobile phone shipments, 21% Growth: IDC

Stan Beer
Saturday, 21 October 2006 13:05

Your IT - Mobility

The worldwide mobile phone market took another step towards reaching one billion units shipped for the year, with a total of 254.9 million units shipped in the third quarter of 2006.

According to IDC's Worldwide Quarterly Mobile Phone Tracker, worldwide shipments of mobile phones were up 7.9% from the previous quarter and up an impressive 21.0% from the same quarter a year ago.

"The strong growth in the third quarter was very comparable to the growth we saw in 3Q05, as the trend of vendors and carriers working to prep for the holiday season begins," says Ryan Reith, research analyst with IDC's Worldwide Mobile Phone Tracker. "New models are appearing on shelves, carrier marketing campaigns are everywhere, and the buzz around stylish phones are driving consumer awareness towards new devices."

With 3Q06 earnings results in, there have been record performances from all of the top 5 vendors in the industry. The high numbers in shipments in the third quarter have allowed IDC to keep their forecast for 2006 intact, with the aim to reach nearly a billion units shipped for the year.

"Shipping nearly a billion units in a single year is a significant milestone, but just as important is the journey it takes to get there," says Ramon Llamas, research analyst with IDC's Worldwide Mobile Phone Tracker. "Much focus has been given to emerging markets, and rightly so. Emerging markets have presented tremendous opportunity for vendors to provide users with their first handsets, and some users may already be looking to upgrade to another phone. Similarly, replacement handsets are a popular option for those in mature markets, especially as new features such as music have gained momentum."

With the holidays approaching, we are seeing consumer's shift their aspirations from slim handsets to the world of mobile music. The portfolio of handsets from each of the top 5 vendors is now outfitted with a signature device that is designed for consumers who want music on the go, and these models are now rapidly gaining the traction we anticipated .

"Handsets that provide music functionality are now very visible in the industry. Mature markets are at a point where it is worthwhile for the carriers to launch these devices with strong marketing campaigns behind them, knowing that consumers are willing and ready to use their device as a music player as well as a phone," says Reith.

Of the top five vendors, Nokia once again was the clear market leader with 34.7% market share, followed by Motorola with 21.1%, Samsung (12.0%), Sony Ericsson (7.8%) and LG Electronics (6.5%).