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November 02, 2009
Global handset Market Returns to Growth Path: Strategy Analytics
By Narayan Bhat, TMCnet Contributor
Global mobile handset shipments fell 4 percent year-over-year, to reach 291 million units in Q3 2009, said market research firm Strategy Analytics.
The research firm has forecasted that the handset industry may return to growth in the fourth quarter of 2009, signaling an end to the recession. The rate of decline was slower than the previous quarter, as the market edged toward recovery, Strategy Analytics found.
“Global mobile handset shipments fell to 291 million units during Q3 2009, down 4 percent from 304 million units in Q3 2008. The four-percent shrinkage was a noticeable improvement on the average decline of 11 percent recorded during the previous three quarters between Q4 2008 and Q2 2009. The handset market is edging toward recovery,” said Bonny Joy, senior analyst at the research firm.
The analyst has predicted that 300 million handsets will be shipped worldwide in Q4 2009, growing 3 percent from 294 million units in Q4 2008.
“We believe this will be the first time the industry has returned to positive growth since Q3 2008, signaling an end to the handset recession after 4 quarters of decline. Consumers and handset vendors are gradually regaining a little confidence,” said Neil Mawston, director at Strategy Analytics.
Among the phone makers, Samsung (News - Alert) shipped 60.2 million handsets worldwide and captured a record 21 percent marketshare in Q3 2009. According to the analyst, Samsung is now sits alongside Nokia (News - Alert) and Motorola as the only three vendors to have passed the 20 percent threshold during the past decade.
The report said the South Korean vendors Samsung and LG captured almost one-third of the entire global handset market, offering attractive touchscreen handsets. LG Electronics alone shipped 31.6 million handsets worldwide during Q3 2009, and gained 11 percent marketshare.
iPhone (News - Alert) maker Apple shipped a healthy 7.4 million iPhones worldwide in Q3 2009, for a record 2.5 percent market share. Apple (News - Alert) is expanding its distribution networks into all major regions worldwide and this is driving its volume growth, said Strategy Analytics.
Whey there is an upturn in the overall market is because consumer confidence is improving.
Though its market share fell to 37 percent, Finnish giant Nokia has remained the biggest phone maker in the world. For Nokia, only the U.S. smartphone market has become harder to penetrate. Sony Ericsson (News - Alert) and Motorola have maintained their 5 percent market share.
Narayan Bhat is a contributing editor for TMCnet. To read more of Narayan’s articles, please visit his columnist page.
Edited by Marisa Torrieri
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