News

23 January 2009

 

Cell-phone shipments fall 10% in Q4/2008

Mobile phone shipments fell 10% year-on-year from 329 million units in Q4/2007 to 295 million units in Q4/2008, according to market research firm Strategy Analytics in its report ‘Q4 2008 Global Handset Market Share Update’.

“An economic downturn in developed and developing markets caused the industry’s slowest growth rate since Q4/2001,” says senior analyst Bonny Joy. “Retailers have been de-stocking due to credit tightness, while consumers delayed purchases because of fears of a recession,” he adds.

“Three of the big five cell-phone vendors recorded negative annual growth rates in Q4/2008. Motorola declined 54%, Sony Ericsson 21% and Nokia 15%,” adds director Neil Mawston. “With volumes and revenues contracting sharply this year, much of the mobile industry’s focus will inevitably be on controlling costs and restoring profitability during 2009.”

Nokia’s market share has fallen slightly year-on-year from 40.6% in Q4/2007 to 38.4% in Q4/2008, but Motorola’s has fallen the most: by almost half, from 12.4% to just 6.4%.

In contrast, Samsung performed best among the big five during Q4/2008, rising from 14.1% to an all-time high market share of nearly 18%, driven by an attractive handset portfolio and wider distribution channels.

Apple shipped a lower-than-expected 4.4 million iPhones. Its annual growth rate of 88% was far below its 516% of the previous quarter. Apple continues to grow at an above-average pace, but the firm is not immune to the wider recession affecting the global economy and mobile device industry, Strategy Analytics concludes.

Mobile handset shipments and market share - top 5

Company	Shipments (millions of units)
	Q4/07	2007	Q4/08	2008
Nokia	133.5	437.1	113.1	468.4
Samsung	46.3	161.1	52.8	196.6
LG Electronics	23.7	80.5	25.7	100.8
Motorola	40.9	159.0	19.0	99.9
Sony Ericsson	30.8	103.4	24.2	96.6
Others	53.9	181.5	59.8	215.8
Total	329.1	1122.6	294.6	1178.1
Company	Global market share %
	Q4/07	2007	Q4/08	2008
Nokia	40.6	38.9	38.4	39.8
Samsung	14.1	14.4	17.9	16.7
LG Electronics	7.2	7.2	8.7	8.6
Motorola	12.4	14.2	6.4	8.5
Sony Ericsson	9.4	9.2	8.2	8.2
Others	16.4	16.2	20.3	18.3
Total growth year-on-year	12.3	12.0	-10.5	4.9

Chart credit: Strategy Analytics.

See related items:

Handset market grows just 7% in 2008, but 3G+, smartphones and cellular modems to keep market ticking over in '09

Mobile sales to show low single-digit decline in 2009

Mobile handset unit shipments continue to grow

Mobile phone sales rise 12% to 305m in Q2/2008

Economic slowdown bypasses mobile device market

Search: Handset shipments

Visit: www.strategyanalytics.com