Global mobile sales to surge in 1Q05, slowdown next year - update 3

05/30/05 - newratings.com

NEW YORK, May 30 (newratings.com) – Global mobile phone sales surged by 17% to a record 180.6 million units in the first quarter of 2005, according to research firm Gartner. The forecast for full year sales has been raised from 720 million units to 750 million units.

Finnish major Nokia (NOK) remained the market leader, with an increase in its market share to 30.4%, up from 28.8% in the year-ago quarter, but lower than 33% posted in the fourth quarter of 2004. Motorola’s market share increased to 16.87%, from 16.3% a year ago and from 16.3% in the fourth quarter of 2004. Samsung’s market share grew to 13.3%, from 12.6% in the year-ago period and from 12.2% in the previous quarter. LG’s market share declined to 6.2%, from 6.8% in the previous quarter, but rose from 5.3% a year ago. Siemens and Sony Ericsson witnessed market share losses during the quarter. Although mobile sales surged across every region in the world, demand for cheaper handsets in the emerging markets is restricting margin growth in the industry, Gartner said. Smaller players would continue to lose market share in the near future and eventually shut down, according to Gartner. The overall growth in PC sales is likely to decline to single-digits by next year despite the surge in mobile PC sales, Gartner said.