Handset sales continue to show strength as the industry enters the third quarter, according to an investor update from Piper Jaffray, with Motorola Inc. furthering its lead in the U.S. market.
Piper Jaffray said Motorola’s Razr phone was the top seller at Cingular Wireless L.L.C. and T-Mobile USA Inc., where it retails for $200. The firm said Motorola also has a leading position with Verizon Wireless, where its E815 EV-DO phone is one of the carrier’s top-selling devices.
“We believe global handset sales are off to a solid start for the third quarter,” wrote T. Michael Walkley with Piper Jaffray in a research note to investors. “Further, we still expect domestic sales to post strong growth in the second half of 2005 due to new handset launches from major original equipment manufacturers, particularly from Motorola.”
Interestingly, Motorola’s increased presence with Verizon could threaten LG Electronics Co. Ltd., which has relied on Verizon sales for its strong CDMA position in North America.
The firm said Nokia continues to struggle in the North American market, where it suffers from a weak CDMA position. However, the firm said it appears Cingular is gearing to sell the Nokia 6682, which would increase the company’s mid-tier handset sales. Nokia’s strength in the U.S. market currently lies in its low-end handset sales.
A Cingular spokesman was not immediately available to comment on the carrier’s phone launch plans.
