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Gartner reports Samsung passes Motorola

Global mobile phone sales rose 26 percent to over 167 million units in the third quarter according to the latest data from research company Gartner Inc. Another notable point in the third quarter statistics is the fact that Samsung passed Motorola in sales for the first time.

The third quarter is slow in the lead-up to the Christmas sales period in some key markets.

All regions registered growth apart from Japan, Gartner said.

Carolina Milanesi, Gartner analyst for mobile terminals, explained that new handset models and decreasing prices fueled replacement sales in mature markets such as Western Europe and North America. In Asia, Central Europe and the Middle East, emerging markets continued to add new subscribers.”

The market leader Nokia Corp. lifted its market share above 30 percent after two consecutive quarters of market share declines, while Samsung Corp. overtook Motorola Inc. as the second-largest global handset maker for the first time.

Regarding Samsung and Motorola’s fight for the number two spot, analyst Ben Wood said: “The fourth quarter is neck and neck. Motorola can fight back.”

He noted that Gartner figures are based on end-user sales, not handsets manufactured.

Wood maintained his forecast for 650 million handset sales in 2004, although he said it may be a little higher.

However, he expects sales growth to fall to around 10 percent in 2005 from the 20 percent levels during 2004. He believes that the replacement cycle in North America and Western Europe is likely to slow.

Global Mobile Phone Sales Up 26% In 3Q
Company Q3 2004 shipments, K’s Market share Q304 Q3 2003 shipments, K’s Market share Q303 Change in mkt share, %
Nokia 51,695 30.90% 45,381 34.20% -10.68%
Samsung 22,981 13.80% 14,837 11.20% 18.84%
Motorola 22,393 13.40% 19,484 14.70% -9.70%
Siemens 12,758 7.60% 12,110 9.10% -19.74%
LG 11,142 6.70% 7,082 5.30% 20.90%
Sony Ericsson 10,683 6.40% 7,065 5.30% 17.19%
Others 35,417 21.20% 26,884 20.20% 4.72%
Total Market 167,070 100% 132,844 100% 0.00%

Source: Gartner Dataquest

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