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Handset Sale Growth Slowing — Analysts

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Analysts have given some slightly different figures for global handset sales in the first quarter of this year (252 million from Strategy Analytics, and 256 million from IDC), but the general consensus is that the growth of the market is slowing down reports RCR News…that being said, 12 percent year-on-year growth is still a great figure. Part of the slowdown can also be attributed to a build-up of inventory in the channel, mostly Motorola’s, which is expected to be cleared next quarter.

In terms of marketshare Motorola experience falls both sequentially and year-on-year. In the first quarter of 2007 Moto’s share was 18 percent, down from 22.2 percent in the fourth quarter of 2006 and down from 20.4 percent year-on-year. Where that marketshare went depends on the timeframe looked at. Nokia gained a further 3 percent of the marketshare year-on-year, more than soaking up Motorola’s losses in marketshare over that period. However, Motorola lost four percent marketshare sequentially and Nokia gained about half a percent — Samsung took up most of the slack gaining three percent marketshare sequentially. LG’s marketshare remained relatively flat over the year, while Sony Ericsson saw its marketshare increase from 5.9 percent to 8.7 percent year-on-year. The amount of the handset market served by companies out of the top 5 decreased from 20.7 percent in the first quarter of 06 to 17.1 percent in the first quarter of 07. (release)