The global handset market grew 12 percent in the first quarter over the year-ago quarter to 252 million units, the first time in two years that growth in this segment fell below 20 percent, according to Strategy Analytics.
The bright spots for the quarter included Nokia Corp.’s “healthy’ 91 million units (more than twice rival Motorola Inc.’s volumes), Samsung Electronics Co. Ltd.’s rebound to 13 percent operating margins and Sony Ericsson Mobile Communications’ remarkable growth in profits and unit volumes, the market firm said.
Nokia’s price cuts in emerging markets hurt Motorola’s volumes in the first quarter, which at 45 million units were lower than its year-ago quarter and nearly one-third less than in the fourth quarter, according to Strategy Analytics.
Strategy Analytics forecasted 265 million units for the second quarter, a modest 13-percent growth rate year-on-year.
IDC had a slightly different take on the main industry metrics. It estimated that unit shipments for the quarter were a tad higher at 256 million units, only a 10-percent increase year-on-year, half that of each quarter last year.
IDC said that the most significant shift in the market was Samsung’s ability to take up much of Motorola’s 4 points in lost market share; the Korean vendor added about 3 points of share for 13.6 percent in the first quarter.
IDC did not make projections for the second quarter.
Handset analysts proffer numbers
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