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Emerging markets drive mobile shipments

Asia, Pacific and Africa spur 11% growth

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A total of 258 million mobile phones were shipped worldwide in the second quarter, up 11 per cent on the same period in 2006. That's according to a Strategy Analytics, which reveals that the number of handsets shipped globally rose by four per cent from 247 million units in the first quarter of 2007.

Overall, global shipments exceeded a record half billion units during the first half of the year with demand proving particularly healthy in emerging markets.

Nokia sold 101 million handsets during the second quarter to give it a record 39 per cent global share. The Finnish firm made significant gains in Asia Pacific, Africa, and China during the three-month period and Strategy Analytics analysts predict that the company will pass the 40 per cent market share threshold during the second half of 2007.

Motorola's current crisis worsened during the quarters as both shipments and margins fell. As if things couldn't get worse, the mobile manufacturer found itself slipping into third place in terms of market share at the expense of Samsung, which registered a record 37 million handset sales during the second quarter.

Samsung now has 15 per cent market share, its biggest ever slice of the pie. However, while the firm saw volumes rise during the second quarter, value was down, with ASPs (average selling prices) falling five per cent sequentially and operating margin slipping eight per cent.

During the three month period, Motorola shipments plunged to 36 million units. Its global share is now 14 per cent, which is back to the pre-RAZR levels of 2003. Strategy Analytics analysts claim that a lacklustre 3G portfolio and a weak GSM line-up across mid- and high-tiers remain the firm's biggest weaknesses.

Sony Ericsson saw its global market share reach its highest level since the merger between Sony and Ericsson back in 2001. The company now has a 10 per cent share and with a 59 per cent annual shipment growth, it is still the fastest-growing firm among the top five mobile manufacturers.

Rounding out the top five is LG, which saw handset volume increase by 25 per cent during the second quarter, its best performance over the past 12 months. Operating margin for LG rose by five per cent to 11 per cent compared to the preceding quarter.

Meanwhile, Apple, which has been hogging the headlines since the launch of its iPhone in June, shipped 270,000 units in the US during the second quarter, to get on the global map for a tiny 0.1 per cent market share.

Strategy Analytics predicts that Apple will push toward a one per cent quarterly share by the end of 2007 and is capable of overtaking the likes of Panasonic, Sharp and Sagem to become one of the leading mobile manufacturers providing it can successfully expand its distribution channels outside the US.

Looking ahead to the third quarter, Strategy Analytics forecasts 283 million mobiles will be sold during the three month period.

© 2007 ENN

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