SAN JOSE, Calif.-The digital handset market saw significant growth in 1996, an indication that this market is developing into a formidable one, says a study by Dataquest.
The digital handset market grew 73 percent in 1996, said the company. L.M. Ericsson and Nokia Corp. were the big leaders in the market with unit shipments that moved them into the first and second positions respectively. The study, “Ericsson and Nokia Displace Motorola in U.S. Digital Handsets,” provides market share information for the U.S. digital handset market, the U.S. cellular Time Division market and the U.S. personal communications services 1900 handset market.
Motorola is now in third place after being first in 1995, said the company.
“Ericsson patiently waited for the digital market to heat up, forecast demand accurately and priced its phones well,” said Clint McClellan, industry analyst for Dataquest’s Personal Communications program. “Nokia also fared well, but its slightly higher prices tipped the scale in Ericsson’s favor.”
“The greatest problems that Motorola faced were delays in product launches and aging form factors. While we expect Motorola to rebound in 1997, it may never dominate the U.S. digital market again.”
The company said Ericsson showed the strongest growth last year with a 184 percent increase in shipments over 1995. Nokia experienced a 99 percent increase in shipments while Qualcomm made a strong showing as the new player in the market.
