Mobile phone shipments to surpass 1B in '06, says IDC

Worldwide mobile phone shipments reached 254.9 million units in Q3, up 8 percent sequentially and 21 percent year-to-year, said market research firm International Data Corp. (IDC) last week.

Based on the strength of the quarter—which included record performances from each of the top five vendors—IDC continues to project that total mobile phone shipments will surpass 1 billion for the year.

Ryan Reith, a research analyst with IDC's Worldwide Mobile Phone Tracker, said third quarter growth was comparable with that of the same quarter in 2005, as vendors and carriers prep for the holiday season.

"New models are appearing on shelves, carrier marketing campaigns are everywhere, and the buzz around stylish phones are driving consumer awareness towards new devices," Reith said.

As the holidays approach, IDC says it is seeing a shift in customer desire to mobile music phones. Each of the top five vendors—Nokia, Motorola, Samsung, Sony Ericsson and LG Electronics—now includes a signature music phone, the firm said.

"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," Reith said.

Nokia set an industry record in Q3, shipping 88.5 million units, IDC said. Nokia's Q3 market share stood at nearly 35 percent, up from less than 32 percent in the third quarter of 2005, IDC said.

No. 2 vendor Motorola posted its sixth consecutive quarter of 40 percent or better increase in unit shipments, according to IDC. Motorola held more than 18 percent market share for the quarter, IDC said.

Rounding out the top five, Samsung posted third quarter market share of 12.6 percent, while LG and Sony Ericsson held 7.4 and 6.6 percent, respectively, according to IDC.

Separately, market research firm ABI Research said that mobile phone shipments topped 245 million units in the third quarter and are on track to reach 1 billion for the year.

- Dylan McGrath
EE Times