U.S. handset sales healthy in Q2, Moto still in No. 1 position

Three things you need to know about the handset market in the United States last quarter, courtesy of Strategy Analytics:
1) Overall unit sales reached nearly 42 million, up 5.3% over the year-ago quarter, which the market analysis firm said stemmed from “healthy” replacement rates. Retail product bundles and new devices led growth.
2) Motorola Inc. retained its No. 1 position with nearly 26% market share, followed by LG Electronics Co. Ltd. Strategy Analytics credited Moto’s carrier relationships and distribution network – though not necessarily its meager new product launches (only 10).
3) Research In Motion Ltd. gained double-digit market share for the first time, selling 1 in 10 handsets sold in the U.S., based on its successful push into the consumer market – which allowed it to retain existing customers and attract new ones, crucial in a maturing market.
“RIM is the real story,” said analyst Bonny Joy at Strategy Analytics.
Joy said that in the first quarter, 2007, RIM had 4% market share in the U.S., which it has grown to 11% in the second quarter of this year.
“This is not 11% market share in smartphones, it is 11% of all phones sold in the U.S.,” Joy emphasized. “Nokia has just over 9% market share here.”
RIM’s success factors included multiple SKUs at multiple carriers and a successful push into the consumer handset space, especially with its Curve model at Verizon Wireless and Sprint Nextel Corp., the analyst said.
In the bigger picture, “RIM is ahead of the industry’s transition from feature phones to smartphones,” Joy said.
Wi-Fi is a key differentiator in RIM devices today, he added.
So, what about the much-discussed rivalry between RIM – which is pushing into the consumer space from its perch in the enterprise space – and Apple Inc., which is pushing into enterprise from its consumer base?
“Both players will win for the next 18 months and beyond as the transition from feature phones to smartphones takes place,” Joy said.
After that, the two vendors may be closer to a head-to-head competition, the analyst said.

Source: Strategy Analytics