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Global handset market shifting

FRAMINGHAM, Mass.-Aggressive tactics from some device manufacturers
coupled with conservative moves by others are causing a shift in global handset
market share, according to new research from IDC.

According to IDC, Nokia
Corp.’s market share has dropped to 27.7 percent, having shipped 45.4 million
units last quarter. Second-place Motorola Inc. has a 14.7-percent market share,
having shipped 24.1 million units, with Samsung Electronics Co. Ltd. trailing
closely with a 13.9-percent market share and 22.7 million units shipped.

Fourth place is now almost too close to call with Siemens AG and Sony
Ericsson Mobile Communications each totaling 10.4 million unit shipments and
6.4-percent market share, and LG Electronics creeping up behind with 9.94
million units shipped totaling 6.1-percent market share. Other manufacturers
accounted for 40.8 million units, or 24.9 percent of the market, bringing the
overall industry total units shipped to 164.7 million units.

“During the
second quarter of 2004, Samsung and LG demonstrated an ability to execute on a
clear plan to improve their market share by injecting creativity into their
mid-range products. Conversely, Nokia and Siemens continued to pursue
conservative strategies formulated prior to today’s increasingly competitive
environment,” said David Linsalata, analyst at IDC. “In the face of
aggressive competition for market share, these vendors must closely monitor
consumer demand and prove their commitment by delivering the technologies and
features in demand by mass-market consumers.”

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