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Motorola up in strong phone market

Aug 4, 2008 — by LinuxDevices Staff — from the LinuxDevices Archive — views

Mobile phone shipments from top-tier handset vendors grew 15 to 22 percent year-over-year, to 301 million units, according to ABI. The figures put the market on pace for 1.8 billion units this year, or 13 percent growth, despite general economic “woes” in other markets.

ABI identified Asia, the Middle East, Africa, and South America as key emerging markets helping to drive growth for mobile phone vendors. Yet, established markets also contributed to economic growth. While unit sales were flat, customers paid more for “coveted higher-end handsets and smartphones,” ABI said.

Jake Saunders, VP of research, stated, “If there is an economic slowdown, no one bothered to tell the mobile device buying public.”

A recent JD Power study also found smartphone sales on the rise. In an earlier report, ABI forecast a 33 percent marketshare for smartphones in the near term.

Top vendor market share percentages listed by ABI were:

  • Nokia, 40.3%
  • Samsung, 15.2%
  • Motorola, 9.3%
  • LG, 9.2%
  • Sony Ericsson, 8.3%

The largest U.S. mobile phone vendor, Motorola, held onto its third-place position, after falling last year from the number two spot. And, says ABI, it risks being passed by LG “by the end of 3Q, 2008.”

Yet, the same day ABI released its summary findings report, Motorola reported a “positive cash flow” of $204 million for the quarter. It said it shipped 28.1 million handsets, for revenues of $3.3 billion, about 22 percent down year over year but a significant sequential reversal. Motorola credited its success in part to launching “ten new products to key markets around the globe” during the quarter, including several flagship models based on Linux.

Three Motorola Linux phones launched in new markets during the quarter
(l-r) Ming A1600, MotoZine ZN5, and MotoRokr E8

(Click any for details)

Research director Kevin Burden said, “There is admittedly turmoil in the global economy, but the mass market's fascination with getting the latest and greatest handset shows no sign of abating.”

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