Mobile Phone Market Returns to Growth

According to IDC’s Worldwide Mobile Phone QView, worldwide mobile phone shipments in 2Q04 increased 6.4% over the first quarter and rose 40.7% year-over-year to 169.8 million units.

LG and Samsung both continued to execute strategies of rapid technological innovation, form factor flexibility, and brand excitement throughout the first half of the year. In contrast, the product strategy for vendors such as Nokia and Siemens remained fairly conservative, failing to match the aggressiveness of its counterparts.

Despite managing to stabilize shipments through pricing and product mix adjustments, Nokia continued to trail overall mobile phone market growth in the second quarter of 2004. With a market share lead several points smaller than just a year ago, Nokia must dramatically increase the amount of innovation it drives down through its product line to its volume handsets if it is to protect its position again further weakness. Similarly, Siemens’ sequential drop in shipments puts its number 4 spot up for grabs, with Siemens, Sony Ericsson, and LG Electronics all within reaching distance of the position.

“During the second quarter of 2004, Samsung and LG demonstrated an ability to execute on a clear plan to improve their market share by injecting creativity into their mid-range products. Conversely, Nokia and Siemens continued to pursue conservative strategies formulated prior to today’s increasingly competitive market environment,” said David Linsalata, analyst in IDC’s Mobile Devices program. “In the face of aggressive competition for market share, these vendors must closely monitor consumer demand and prove their commitment by delivering the technologies and features in demand by mass-market consumers.”

Vendor Highlights

— Nokia – Despite continuing to lead the worldwide mobile phone market with 27.6% market share, Nokia’s slow growth compared to the overall market resulted in a drop in market share for the second consecutive quarter. Initial attempts at stabilizing shipments, however, do appear to be affecting change, as the company posted a year-on-year increase of 11.8% and a sequential growth of 1.6%.

— Motorola – Although the success of a rejuvenated product line helped Motorola achieve a 52.4% year-on-year increase in shipments, the number 2 vendor still experienced a sequential drop of 4.7% during the second quarter of 2004. With number 3 Samsung close behind and gaining, the success of Motorola’s new business and consumer-focused mobile phones are critical to its continued success in the market.

— Samsung – Despite fierce competition in the U.S. market, Samsung posted impressive 76.0% year-on-year growth worldwide and a corresponding 1.3% increase in market share to 13.8%. With a number of new models planned for launch in the third quarter, Samsung is well-positioned to continue advancing on Motorola’s number 2 spot.

— Siemens – After a dramatic sequential drop of 18.8%, Siemens experienced a corresponding market share decrease of 1.7%. Although shipments did increase 28.4% year-on-year, Siemens must return to positive growth in order to protect its position as the number 4 vendor worldwide.

— Sony Ericsson – Thanks to a strong shipment increase of 55.0% year-on-year and 18.2% sequentially, Sony Ericsson raised its market share 0.8% from the previous quarter to 6.3%, tying Siemens for the number 4 spot in the market. With a number of innovative new products scheduled for release in the latter half of the year, Sony Ericsson’s recent surge may help the vendor claim the number 4 spot for its own.

— LG Electronics – With market-leading year-on-year growth of 87.0% and sequential growth of 13.6%, LG increased its market share 0.6% to 6.0% of the worldwide mobile phone market. Separated from Sony Ericsson by just over 500 thousand units through the first half of 2004, LG is within striking distance of its perennial competitor.

Top 5 Vendors, Worldwide Mobile Phone Shipments and Market Share,2Q 2004 (Preliminary)   1 Nokia                                 45,400,000            27.6%----------------------------------------------------------------------   2 Motorola                              24,100,000            14.6%----------------------------------------------------------------------   3 Samsung                               22,700,000            13.8%----------------------------------------------------------------------   4 Siemens                               10,400,000             6.3%----------------------------------------------------------------------   4 Sony Ericsson                         10,400,000             6.3%----------------------------------------------------------------------   5 LG Electronics                         9,940,000             6.0%----------------------------------------------------------------------     Other                                 41,760,000            25.4%----------------------------------------------------------------------     Total                                164,700,000           100.0%----------------------------------------------------------------------Notes: Vendor shipments are branded shipments and exclude OEM sales for all vendors.

Mobile Phones — These small, battery-powered, voice-centric devices utilize operator-provided cellular/PCS air interfaces for voice communication. They are designed primarily, in both form factor and feature set, for a compelling mobile telephony experience, but may also include text-messaging capability. Mobile phones may include a headset jack for hands-free operation as well as a variety of features, such as personal information management, multimedia, games, or office applications. Mobile phones exist at all points along the form factor, price point, and feature set continua. Mobile phones that combine voice communications capabilities with pen or keypad handheld data features are tracked within the Converged Devices category.

Source: IDC, July 29, 2004


Samsung’s wide range of Galaxy products means there’s something for everyone

Samsung launched a host of new products on February 20, with prices ranging from just $35, all the way up to nearly $2,000. This was not by chance, and the company believes it has something for everyone in 2019.
Home Theater

Here's a handy guide to mirroring your favorite devices to your TV screen

A vast arsenal of devices exists to allow sending anything on your mobile device (or PC) to your TV. Our in-depth guide shows you how to mirror content from your smartphone or tablet to the big screen.
Product Review

If price is top of mind, Samsung’s Galaxy S10e is the flagship phone to buy

Samsung’s Galaxy S10 and S10 Plus are joined with a new entry into the Galaxy S family -- the Galaxy S10e. It costs a little more than the original price of the Galaxy S9, but it’s meant to be the more affordable phone compared to the…

The 2-year-old Nokia 6 is now being updated to Android Pie

Android 9.0 Pie has been released. But is your phone getting Android 9.0 Pie, and if so, when? We've done the hard work and asked every device manufacturer to see when their devices would be getting the update.

Protect your iPhone or iPad with the IPVanish VPN, on sale through February

One of our favorite virtual private networks for iPhones and iPads, IPVanish, is now offering a huge discount on its two-year subscription as part of its 7th-birthday promotion. Read on to find out more about how this VPN works and how you…

Verizon is launching real standards-based 5G in 30 cities in 2019

Verizon is in the midst of a massive 5G rollout. In addition to fixed 5G service, it will also begin deploying mobile 5G in the coming months. Here's everything you need to know about Verizon's 5G network and when it will be in your town.
Product Review

Samsung’s Galaxy Buds are a brilliant combination of value and comfort

With six hours of battery life, an extremely comfortable fit, sweatproofing, and a very palatable price tag, Samsung’s Galaxy Buds are putting all other true wireless earbuds on notice.

Stay fit and save cash with our top 10 affordable Fitbit alternatives

As much as we love Fitbits, they're rather expensive. If all you want is a simple activity tracker, however, then check out these great cheap Fitbit alternatives. With offerings from brands like Garmin, you don't need to pay full price.

Samsung Galaxy S10e vs. OnePlus 6T: Can the Flagship Killer survive?

The Samsung Galaxy S10e is the new affordable flagship on the block, but at $750, it's $200 more than the OnePlus 6T. Does the Flagship Killer stand a chance against the new generation of flagship devices? Let's take a closer look.

Make some time for the best smartwatch deals for February 2019

Smartwatches make your life easier by sending alerts right on your wrist. Many also provide fitness-tracking features. So if you're ready to take the plunge into wearables and want to save money, read on for the best smartwatch deals.

Amazon drops a sweet deal on the Kate Spade Scallop smartwatch for women

Unlike many other smartwatches geared toward women, the Kate Spade Scallop offers a more chic and minimalistic look. With this Amazon sale going on right now, you can get it for $109 off its retail price.

Lyft’s Shared Saver service offers cheaper rides, but you’ll have to walk a little

Lyft has launched a new ride option called Shared Saver that offers cheaper rides if you're willing to walk a little. Shared Saver designates a nearby pick-up point and drops you off a short distance from your final destination.

The 5 best Apple AirPods alternatives for Android, Windows, and iOS devices

Apple AirPods, nice as they are, aren't the only game in town. Other makers are offering their own truly wireless earbuds, and if you're looking to buy a pair of high-end in-ear headphones, we've got the best AirPod alternatives on the…

Samsung Galaxy S10e vs. iPhone XR: Cut-price flagship showdown

The Samsung Galaxy S10 range has been revealed, and it heralds a new age of powerful technology. The Galaxy S10e packs the new power and design into a cheaper price point. But is it better than the iPhone XR?