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Cellphone shipments hit 265M in Q2

Posted: 06 Aug 2009 ?? ?Print Version ?Bookmark and Share

Keywords:Cellphone shipment? handset? wireless communications?

Shipment of mobile handsets in Q2 09 rose 4.7 percent from the previous quarter, marking the first sequential increase for the market since Q3 08.

This is according to an iSuppli Corp. report, which noted that worldwide shipments amounted to 265 million units in Q2 09, up from 253 million shipments in the previous quarter.

"The moderate increase indicates the worldwide mobile handset market is bottoming out and now is returning to growth," said Tina Teng, senior analyst for wireless communications at iSuppli. "Much of the growth was generated by two emerging regions: the Middle East and Latin America. Furthermore, several aggressive promotional campaigns boosted sales in North America, with regional shipments rising by 8 percent during the period."

The rise in shipments is welcome news to a handset industry that has seen nine months of contraction. Shipments declined by 0.3 percent in Q3 08, by 2.6 percent in Q4 08 and by 16.4 percent in Q1 09. This decline translates to a decrease of 58.8 million units compared to Q2 08 when the downturn was just beginning.

For the rest of the year, shipments are expected to rise by 6 percent, or 280.9 million, in Q3 09, and by 8.3 percent to 304.2 million Q4 09.

However, annual shipments are still expected to contract by 9.9 percent in 2009, with the total for the year amounting to 1.1 billion units, down from 1.23 billion in 2008.

Top players get bigger
The top five handset suppliers outperformed the smaller players in Q2 09, according to iSuppli. Combined shipments for the top five brands rose by 12.1 percent in Q2 09 compared to the first, while all other companies together experienced an 18.1 percent plunge.

Among the top five, individual company performances vary dramatically, though the rankings for these companies did not change compared to Q1 09.

The best performance in Q2 09 was posted by LG Electronics, with handset shipments rising to 29.8 million units in Q2 09, up 31.9 percent from 22.6 million units in Q1 09. Company market share rose by 2.3 points to 11.2 percent.

"LG strong performance in the second quarter was due to its success in emerging regions, including the Middle East and Africa," Teng said. "The company also managed to orient its product mix to more profitable handsets including new touchscreen devices."

Meanwhile, Motorola Inc. increased shipments by 0.7 percent to 14.8 million units in Q2 09, up from 14.7 million in Q1 09. The company still underperformed the market and lost share, the rise brought to an end three consecutive quarters of declines in shipments for the company.

"Motorola finally has put a stop to its shipment slide due to its improved performance in North America and Latin America," Teng said. "With this increase in shipments, Motorola has managed to secure its No. 4 ranking in the market."

"The No. 1 player, Nokia, has been defending its dominant position since the third quarter of last year due to rising competitive pressure from Samsung, which has been expanding its sales in Europe and in emerging markets," Teng said. "The company also has faced rising competition from smart phone players including Research in Motion and Apple Inc."

Nokia was able to gain 2.1 percentage points of market share in Q2 09, with shipments rising to 103.2 million units.

Samsung Electronics Co. Ltd remains on track to achieve its target of more than 200 million mobile handset unit shipments this year. The company's refreshed product line-up allowed it to increase its shipments by 14.2 percent and its share by 1.6 points compared to Q1 09

Sony Ericsson, however, had another disappointing quarter, with shipments down by 4.8 percent and market share by 0.5 percent from Q1 09. "The company is known for leveraging the brand strength from Sony and its mid- to high-end multimedia devices," Teng said. "Sony Ericsson's product portfolio has not been adequately aligned with the two fastest-growing segments: smart phones and ultra low-cost handsets."

For more statistics and forecasts, click here

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