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Jul. 31, 2009

For the most part, global wireless handset shipments are still down, but not as much as some had expected.

Strategy Analytics reports that global mobile handset shipments fell about eight percent year-over-year, to reach 273 million units in the second quarter.

The rate of decline was slower than the previous quarter, which was down about fourteen percent, and the fourth quarter, which was down 11 percent.

Samsung's global shipments actually rose about 14 percent during the quarter. LG Electronics shipped 29.8 million handsets worldwide during the second quarter, for a record market share of 11 percent.

For its part, Motorola shipped a better-than-expected 14.8 million handsets in the second quarter, for a 5 percent market share. Apple shipped a better-than-expected 5.2 million iPhones worldwide, for a 1.9 percent market share.

Overall, wireless analysts attribute the relative upturn to improved consumer confidence in some regions such as China, and by partial restocking of some retailers’ sold inventory.

IDC says Nokia held an approximate 38.2 percent global market share in the second quarter, followed by Samsung with 19.2 percent share.

LG Electronics had a 11 percent share, while Motorola had a 5.5 percent slice of the market.

Sony Ericsson accounted for a little over 5 percent and the other handset makers totaled slightly above 20.5 percent.

Based on IDC's Global Quarterly Mobile Phone Tracker, wireless handset vendors shipped a total of 269.6 million units, down 10.8 percent from 302.2 million units in the 2008 second quarter. The second quarter results are an improvement from the 17.2 percent decrease seen during the first quarter, according to IDC’s figures.

For 2009 to date, IDC believes that the market will actually decline about 12 to 13 percent, with the market outlook for the year remaining relatively consistent among the top handset makers.

These tiny signs of improvement were centered around some consumer demand for high-end wireless handsets and the manufacturers' ability to shift some finished products to meet those needs.

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Source: Strategy Analytics.