Posts Tagged ‘phone shipment’
Nokia today announced that it was lowering its estimate for mobile device shipments for 3rd quarter. In July, Nokia had announced that Q3 shipments will be on par with Q2. In Q2, Nokia shipped 122m units according to IDC
According to Nokia, the overall market demand for mobile devices will be tempered due to weaker consumer confidence in several markets. Although, it still believes that the market will grow by 10% in 2008.
Nokia cites several reasons for why it is lowering its forecast including:
Nokia’s tactical decision to not meet certain aggressive pricing of some competitors, the overall market competition, including the entry markets, and the temporary impact of a slower ramp-up of a mid-range Nokia device. Nokia’s strategy is to take market share only when the company believes it to be sustainably profitable in the longer term. Nokia has not broadly participated in the recent aggressive pricing activity – as it believes that the negative impact to profitability would outweigh any short term incremental benefits to device unit sales.
It will be interesting to see whether this downward revision is announced by other device vendors or is it isolated only to Nokia.
IDC today published a state of the mobile phone industry called the Worldwide Mobile Phone Tracker. According to this report, mobile phones shipments continue to see solid 115.3% growth worldwide in Q2, 2008 despite challenging economic conditions worldwide. This is thanks in large part to the smartphone features like GPS, multimedia and touchscreen. Vendors continue to experiment and provide new functionality even in emerging market. Here is a snapshot of the top 5 vendors courtesy of IDC (shipment are in millions of units).
Vendor Q208 Q208 Q207 Q207 2Q08/2Q07
Shipments Market Shipments Market Growth
Nokia 122.0 39.9% 100.8 38.0% 21.0%
Samsung 45.7 14.9% 37.4 14.1% 22.2%
Motorola 28.1 9.2% 35.5 13.4% -20.8%
LG Electronics 27.7 9.1% 19.1 7.2% 45.0%
Sony Ericsson 24.4 8.0% 24.9 9.4% -2.0%
Others 58.1 19.0% 47.7 18.0% 21.8%
Total 306.0 100.0% 265.4 100.0% 15.3%