Nokia dominant Gartner report says
Worldwide mobile phone sales totalled 816.6 million units in 2005, a 21% from 2004, as the leading six vendors increased their share of the market at the detriment of smaller vendors, according to Gartner.
The top six vendors accounted for 79.4% of worldwide mobile phone sales in 2005. These leaders experienced a steady increase in market share throughout the year, as their market share increased from 78% in the first quarter to 84% in the fourth quarter of 2005.
“As competition continues to drive price pressure in the low-end, and a design and technology “arms race “ in the high-end, the survival of the fittest depends more and more on economies of scales, or very carefully cut out niche markets,” said Carolina Milanesi, principal analyst for mobile terminals research at Gartner, based in Egham, UK.
In the fourth quarter of 2005, sales of mobile phones exceeded 235 million units. This is the biggest quarter on record since Gartner started tracking the market on a quarterly basis in 2001.
Nokia remained the worldwide leader with 32.5% of all mobile phone sales in 2005. It now has a market share that is more than double that of its nearest competitor in Europe and Asia, and more than three times its nearest competitor in Eastern Europe, the Middle East and Africa. After a difficult 2004, Nokia bounced back bringing to market products like the 6680, the 8800 and WCDMA products such as the n70.
With sales just under 42 million units in the fourth quarter of 2005, Motorola retained the number two spot in Western Europe and at a world-wide level. In 2005, “thin” was definitively better for Motorola as it recorded the largest market share growth among the top manufacturers in 2005 (from 15.4% to 17.7%).
Samsung remained in the third position in the fourth quarter of 2005 with sales totalling 28.4 million units. For 2005 its market share remained static at 12.7 percent, with only a 0.1 percentage point gained from 2004, widening the gap with Motorola. This is mainly due to Samsung favouring margins over market share and the decision not to enter the price war in the emerging markets.
In Western Europe, sales of mobile phones totalled 49.1 million units in the fourth quarter of 2005 and 164 million units in 2005. Consumers took advantage of Christmas promotions and upgraded their phones to newer and trendier phones. “The trend in the fourth quarter was all about fashion, with phones such as the Motorola pink razr v3 and the Siemens CL75 Poppy capturing consumers’ interest,” Ms. Milanesi said. “In countries such as the UK, people were even prepared to subscribe to a new contract before their existing contract ended in order to acquire the pink razr phone.”
The same trend of upgrading to trendier phones occurred in the more mature markets in Central Eastern Europe, the Middle East and Africa (CEMEA), as first time subscribers continued to join networks and mobile phone sales for the year reached 153.5 million units. Gartner analysts expect the region’s growth in 2006 to be fuelled by increased replacement sales in Eastern Europe and the Middle East, but mainly by new subscriber growth in Africa.