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Nokia leads in phone sales

Nokia Corp. captured almost 28 percent of the world wireless handset market, shipping more than 25 million units, according to a recent Dataquest report. More than 90 million wireless handset units were shipped during the first quarter of 2000.

According to those numbers, total handset shipments for the year should total a record 430 million units. However, if 2000 follows the typical seasonal pattern, final year shipments are likely to run as high as 460 million units or more, a figure more than the combined shipments of 1998 and 1999, Dataquest noted.

Motorola Inc. followed Nokia at a distant second, with 16 percent of the market, shipping 14.4 million units. Ericsson followed, with 11.5 percent of the market, shipping 10.3 million units. Samsung placed fourth, with 6.3 percent of the market and 5.6 million units shipped, and Alcatel placed fifth, with 5.5 percent of the market and 5 million units shipped through the first three months of the year.

“Despite its continued vulnerability in the rapidly growing Code Division Multiple Access technology sector, Nokia extended its global market-share lead during the first quarter of 2000 on the back of its continued leadership position in [Global System for Mobile communications] and [Time Division Multiple Access],” said Peter Richardson and Bryan Prohm, authors of the report for Dataquest. “As Nokia shifts to CDMA, opportunities will arise for an upstart vendor to assault Nokia’s current GSM and TDMA leadership position.”

The report went on to say that despite a product range it termed “uninspiring,” Motorola continues to hold market share with good distribution, improving brand equity and an aggressive sales force.

Ericsson’s numbers were greeted with mixed reaction from Dataquest, noting that while the company’s sales in the Americas have seen continued strong performance from the fourth quarter of 1999, the Asia/Pacific region results were somewhat disappointing and fell short of Dataquest’s expectations.

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