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LG Electronics takes clear lead in CDMA market says report

Posted: 09 Jun 2005 ?? ?Print Version ?Bookmark and Share

Keywords:cdma? motorola? lg electronics? nokia? strategy analytics?


South Korean vendor LG Electronics has opened a seven point market share gap in the North American CDMA market, said Strategy Analytics in its latest report, titled "North American Handset Market Q1'05." Motorola, however, remained the overall market leader in the North American market with a 34 percent market share in the first quarter of 2005, added Strategy Analytics.

"As we expected, growth is slowing rapidly as the color upgrade cycle loses steam and operators hesitate to aggressively subsidize camera phones," stated Chris Ambrosio, director of the Wireless Device Strategies service.

"The fragmented and ultra-competitive CDMA market does not afford any one vendor a lasting dominant share position, but LG's surging performance in GSM shows product and distribution balance that is a precursor to leading competitive participation in U.S. market," explained Ambrosio.

David Kerr, VP of the Wireless practice, noted, "Samsung is severely limited in its ability to ramp volumes faster than the market due to its continuing weakness in the profit driving mid tier. Samsung's refusal to move beyond its initial high-end only strategy is reminiscent of the myopia shown by Nokia in not jumping on the color and clamshell bandwagon."

Meanwhile, Nokia share fell 7 percentage points to 13 percent as the vendor lost out in the GSM replacement market to Motorola, Samsung, and LG.

Motorola continued it position with a 34 percent overall market sales. The company's well-timed GSM portfolio diversification has driven it to a dominant share lead at Nokia's expense.

The report also indicated that further consolidation appears likely as Panasonic, nec and Siemens have all found NA to be hugely challenging while Kyocera is at a critical transition point.

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