Cell Phone Shipments Drop In Second Quarter - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

01:17 PM

Cell Phone Shipments Drop In Second Quarter

Economic concerns are sapping demand for cell phones, but smartphones like the iPhone 3GS continue to be a bright spot.

The global recession is still hurting the cell phone market, and mobile phone shipments were down 10.8% in the second quarter, according to data from IDC.

IDC said cell phone makers shipped 269.6 million units worldwide for the quarter, and the decline wasn't as bad as the previous quarter. The major issues facing the manufacturers during the quarter were channel destocking, foreign exchange volatility, and uncertain demand, IDC said.

Overall, the company expects the mobile market to decline about 13% for the year, and this is roughly in line with what companies like Nokia and Samsung have forecasted. IDC said the quarter wasn't all gloomy though, as smartphones continued to sell well and see high demand.

"Among the big handset vendors, Nokia, Samsung, Research In Motion, and Apple all beat expectations for smartphones within the second quarter," said Ryan Reith, senior research analyst with IDC, in a statement. "This demand for high-end mobile phones has created a price war among large mobile operators and handset vendors."

Nokia continues to lead the mobile market, as IDC said it held roughly 38.3% of the market. The company shipped over 100 million units for the quarter, and it launched high-profile handsets like the N97. Nokia did see its profits dip for the quarter, and it will be placing a stronger emphasis on software services and the U.S. market to counter this.

Samsung maintained its position as the second-biggest cell phone maker, and it had the highest year-over-year gains among the leading vendors. LG Electronics was in third place and found success with its mid-tier devices and smartphones. Motorola had 5.5% of the market to capture fourth place, and Sony Ericsson was the fifth-largest cell phone maker.

Apple is not within the top-five handset makers, but the company had a very successful quarter by selling smartphones with high profit margins. The company recently launched the iPhone 3GS, and the handset beat most expectations by selling a million units in its launch weekend.

InformationWeek has published an in-depth report on application development. Download the report here (registration required).

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Flash Poll