Increasing handset vendors concentration
Nokia increased its global marketshare from 34.2% to 38.2%. However, not all handset vendors benefited from the market growth in the same way: Samsung passed Motorola in 2007, and became #2 in the industry after Nokia. In 2007, Samsung grew four times quicker than the global market average.
Outlook for the mobile market is not so positive: “Over the last three years, growth in the industry during the holiday quarter has fluctuated from 18.0% to 30.0%, and this past quarter we saw it drop to 11.6%,” said Ryan Reith, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. “The expectation that the market would maintain the level of growth it saw over the last three years was unrealistic. We expect growth to be in the single digits throughout 2008, and most likely for years to follow.”
The market is experiencing an increasing concentration. Nokia grows twice quicker than the market average, three out of four other major vendors grow at least twice quicker than the market average, and at the same time, all other handset vendors have flat shipments, thus loose 2 points marketshare.
- Nokia shipped more units in the fourth quarter than the next three vendors' shipment volumes combined. According to Nokia executives, this number could have been even higher if the company did not have to deal with component shortages during production.
- Samsung took the No. 2 position worldwide for the year. In the process, Samsung realized double-digit profit margins during Q4/2007. Looking ahead to the Q1/2008, the company plans to top its 46.3 million shipment volume while maintaining profit margins.
- Motorola spent another quarter addressing its challenges, the most significant being a slowing demand for Motorola's products. CEO Greg Brown pointed out that the company had missed out on significant growth areas, most notably in 3G, China, and emerging markets.
- Sony Ericsson broke through the thirty million unit mark for the first time in its history. As in previous quarters, EMEA represented the bulk of the company's shipments. Sony Ericsson recorded the highest ASP among the leading vendors.
- LG Electronics took another step towards breaking the 25 million units per quarter mark.