More than 1,000 IDC analysts provide global, regional, andlocal expertise on technology and industry opportunities and trends in over 110countries worldwide. IDC helps IT professionals, business executives, and theinvestment community make fact-based decisions on technology purchases andbusiness strategy. About IDCIDC is the premier global provider of market intelligence, advisory services,and events for the information technology, telecommunications, and consumertechnology markets. For more information about IDC`s Worldwide Quarterly Mobile Phone Tracker,please contact Kathy Nagamine at 650-350-6423 or .
Mobile phones that combine voicecommunications capabilities with pen or keypad handheld data features aretracked within the Converged Devices category. Mobile phones exist at all points along the form factor,price point, and feature set continua. Mobilephones may include a headset jack for hands-free operation as well as a varietyof features, such as personal information management, multimedia, games, oroffice applications. They aredesigned primarily, in both form factor and feature set, for a compelling mobiletelephony experience, but may also include text-messaging capability. Mobile Phones - These small, battery-powered, voice-centric devices utilizeoperator-provided cellular/PCS air interfaces for voice communication.
Top Five Mobile Phone Vendors, Shipments, and Market Share, Q1 2009(Units in Millions) Vendor 1Q091Q09 Market1Q081Q08 Market1Q09/1Q08Shipments ShareShipments ShareChangeNokia93.238.1%115.5 39.7%-19.3%Samsung45.918.8%46.315.9%-0.9% LGE22.69.2% 24.48.4% -7.4% Motorola 14.76.0% 27.49.4% -46.4%Sony Ericsson14.55.9% 22.37.7% -35.0%Others 53.922.0%54.918.9%-1.8% Total244.8 100.0% 290.8 100.0% -15.8% Source: IDC Worldwide Quarterly Mobile Phone Tracker, April 30, 2009 Note: Vendor shipments are branded shipments and exclude OEM sales for allvendors. Meanwhile, the company continued to build its content and servicesplatform, with roll out of PlayNow Plus, Movies, and Arena across Europe.Although Sony Ericsson has been implementing a cost reduction plan since thesummer of 2008, President Komiyama cited further need to reduce costs andheadcount. Sony Ericsson saw its market share decline as several key markets moved awayfrom mid- and high-tier devices towards low-cost devices, where the company doesnot compete. During thequarter, Motorola launched its Evoke QA4 and MOTOSURF A3100, as well as theindustry's first eco-friendly device, the MOTO W233 Renew. In addition, Jha highlighted plans to addmore smartphones to its portfolio before the end of the year. Co-CEO Sanjay Jha underscored the company'soperational effectiveness and cost savings, noting the reduction in operationalloss compared to the previous quarter. Motorola, although posting another quarter of operational loss, showed signs ofimprovement to start 2009.
Even as the recession continues, the company istargeting double-digit sequential growth in 2Q09 with the release of high-endmodels to key regions as well as low-cost devices into emerging markets. Drivingits improvement was a combination of cost, supply chain, and operationalefficiencies as well as warm reception for its touch screen, messaging, anddigital imaging devices. LG Electronics began the year on a positive note, posting an increase inoperating margins despite a year-over-year decrease in shipment volumes. Samsung also recently announced its first Android-powered device,the i7500, due to hit the European market in June. Samsung returned to double-digit profitability to start the year, resulting fromimproved operating efficiencies and a favorable product mix for the quarter.Samsung's strong position in feature phones sustained interest during anotherwise quiet quarter, with touch devices like the F480 and messaging deviceslike the A767. Despite these challenges, Nokia posted ahealthy 33.8% gross margin on its devices and services, with the success comingfrom the 5800 XpressMusic device as well as the launch of several servicesincluding Comes With Music, Nokia Messaging, Ovi Store, and Point and Find. Still, with growth coming increasingly from lower-end segments in theregion, phone makers will find their average selling prices and profit marginschallenged.Top Five Mobile Phone VendorsNokia saw its shipment volumes dip below the 100 million unit mark for the firsttime in two years, while its ASP slid due to pricing pressure and greateremphasis on lower-priced devices.