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Nokia's shipment decline offsets Samsung's, Apple's gains

Posted: 04 May 2011 ?? ?Print Version ?Bookmark and Share

Keywords:smartphones? shipments? quarter? growth? market?

ABI Research estimates that 100 million smartphones were shipped in first quarter of 2011. This represents a 0.5 percent reduction over fourth quarter of 2010 shipments and a 75 percent gain over first quarter of 2010.

In comparison, the overall handset market is estimated to be 380 million devices, or a 2.5 percent reduction from fourth quarter of 2010 levels.

According to ABI Research, iOS could displace Symbian from its new second position by the end of 2011.

"Although seasonality is often cited as the cause of the shrinkage, Nokia's 15 percent sequential decline acted as a drag on Q1's anemic market growth," said Michael Morgan, senior analyst of ABI Research.

Nokia's smartphone market share dropped to 25 percent in the first quarter, down from 40 percent in the first quarter of 2010. While Nokia remains positive about its strategic shift to the Windows Phone 7 platform, ABI Research believes its losses will accelerate through 2011.

Apple has benefited from an additional 2.2 million Verizon iPhones and strong performance during the Asia-Pacific holiday season with a 15 percent sequential gain in shipments. Samsung smartphones also performed well in the first quarter showing 16 percent sequential gain, which lifted it to 13 percent of total smartphone shipments. The increased shipments from Samsung and Apple roughly equaled the drop in shipments from Nokia.

HTC delivered solid 7 percent growth and 9.5 million smartphones, while RIM remained essentially flat with 2 percent sequential growth and Motorola Mobility shipments experienced a 16 percent decline.

"ABI Research believes the factors that muted growth in Q1 are expected to continue through Q2 of 2011 and overall smartphone market growth is not expected to achieve 2010 levels until the second half of the year," commented Kevin Burden, practice director of ABI Research.

The Android platform was installed in more than 30 million shipped smartphones in the first quarter, to take first place away from historic platform leader Symbian which was delivered in 25.6 million smartphones over the same period. Apple's strong growth over the quarter moved iOS from 16 percent market share to almost 19 percent and a solid third place.

"Considering the recent trends, iOS could displace Symbian from its new second position by the end of 2011," said Jake Saunders, vice president of forecasting at ABI Research.

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