Gartner Says Mobile Phone Sales Rose 17 Percent in the First Quarter of 2005
Research Firm Raises Forecast for 2005 Worldwide Sales As First Quarter Results Set Record
Egham, U.K., May 25, 2005 — The mobile phone
industry had a record first quarter with worldwide sales totaling 180.6 million
units, a 17 percent increase from the first quarter of 2004, according to
Gartner, Inc. The previous high for mobile phone sales was 153.7 million units
in the first quarter of 2004. Gartner analysts said mobile phone sales grew in all regions.
"In the mature markets of Western Europe and North America
replacement sales ensured a buoyant performance," said Ben Wood, research vice
president for mobile terminals research at Gartner. "The Asia/Pacific region
reflected seasonal trends by virtue of strong sales associated with Chinese New
Year and other festivals." In addition, rapid growth in emerging markets,
notably Eastern Europe, Middle East and Africa and Latin
America, further bolstered global sales, he said.
Nokia?s market share grew (see
Table 1) despite poor performance in North America.
"The company did particularly well in Asia/Pacific, especially in mainland China where
aggressive pricing, significant investments in marketing and its distribution
network delivered sales of more than 5.6 million units," said Ann Liang,
principal analyst for mobile terminals in Asia Pacific at Gartner.
Table 1
Worldwide Mobile
Terminal Sales to End-Users in 1Q05 (Thousands of Units)
Company
1Q05 Sales
1Q05 Market Share (%)
1Q04 Sales
1Q04 Market Share (%)
Nokia
54,943.1
30.4
44,259.1
28.8
Motorola
30,293.6
16.8
25,111.0
16.3
Samsung
24,099.0
13.3
19,362.5
12.6
LG
11,138.6
6.2
8,210.0
5.3
Siemens
9,942.7
5.5
12,285.8
8.0
Sony Ericsson
9,900.0
5.5
8,638.6
5.6
Others
40,293.0
22.3
35,879.9
23.4
Total
180,610.0
100.0
153,746.9
100.0
Note* This table excludes ODM to OEM shipments.
Source: Gartner Dataquest (May 2005)
Motorola continued its strong
performance with global mobile phone sales of 30.3 million units. Gartner
analysts said the company?s success was based on a strengthening brand (built
largely on the success of its RAZR V3 phone) and improved relationships with
network operators.
"Motorola must now work hard in
2005 to grow its market share further without sacrificing margins too
dramatically, particularly given its commitment to supply ultra low-tier
products," Mr. Wood said.
Samsung increased its sales,
doing especially well in Western Europe.
Samsung also recorded strong sales in Russia, while price reductions
helped it elsewhere in the region. Rival LG did well in North
America thanks to sales of its code division multiple access
(CDMA) phones.
Siemens had a difficult quarter,
as its market share slipped to its lowest level since 1999. "The uncertainty about
the future of Siemens? business has hurt it as network operators and key
channels lose confidence in the company and its products," Mr. Wood said.
Based on the first quarter
results, Gartner has increased its estimates for worldwide sales. Gartner now
projects worldwide mobile phone sales in 2005 will approach 750 million units,
a 13 percent increase from 2004. Gartner had previously forecast sales of 720
million units.
"More phones are being sold, but
profit margins are shrinking," Mr. Wood said. "This is because consumers in
emerging markets want cheap handsets, and competition in more-developed markets
keeps prices low. Smaller manufacturers will feel the pressure, and many of
them are already struggling to stay profitable. We expect some of them to be
bought out, and a few will choose to leave the mobile phone market completely."
About Gartner:
Gartner, Inc. is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has over 3,900 associates, including more than 1,100 research analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
