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3G handsets a growing chunk of US market

NEW YORK-Third-generation handsets now account for roughly 16 percent of the U.S. mobile phone landscape, according to a new study from CIBC World Markets.

In the firm’s January report on 3G handset sales, CIBC found that 12 out of a total of 76 handsets sold in the United States support high-speed data networks. All of the phones were CDMA 2000 1x EV-DO handsets, selling through Verizon Wireless and Sprint Nextel Corp. The two carriers last year flipped the switch on their 3G networks, and have been slowly expanding their portfolio of advanced handsets.

CIBC said Verizon Wireless is now selling nine EV-DO phones, while Sprint Nextel sells the remaining three. The firm said Samsung Electronics Co. Ltd. is currently the lead 3G handset supplier in the United States, selling a total of four 3G phones. Motorola Inc. is second with three models, while LG Electronics Co. Ltd., UTStarcom Inc. and Sanyo Electric Co. Ltd. round out the market’s 3G suppliers.

Interestingly, CIBC said Nokia Corp. will soon join the ranks of EV-DO handset suppliers with the introduction of its EV-DO 6305i slider phone through Verizon Wireless. A Nokia spokesman said the company has not announced any such phone, and that the company would not comment on “market rumors.” A Verizon Wireless representative was not immediately available to comment.

CIBC said the 3G handset situation in the United States should soon accelerate when Cingular Wireless L.L.C. begins selling handsets for its recently launched W-CDMA/HSDPA network. The carrier currently only offers PC cards for the network. CIBC predicted Cingular will begin selling 3G handsets in the second quarter. Already LG and Samsung have announced plans to sell 3G handsets through Cingular.

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