India has become a hot-bed for the mobile markets. The mobile users in the country have doubled compared to the number of mobile users last year.
On the other hand, worldwide mobile phone sales totaled 251 million units in the third quarter of 2006, a 21.5 per cent increase from the same period last year, according to Gartner. Third quarter sales in Asia/Pacific, especially India and China, rose dramatically and drove overall growth upwards. Asia/Pacific was the fastest growing region this quarter.
As a result of the strong quarter, Gartner raised its mobile phone sales forecast to reach 986 million units in 2006, with 281 million units in the fourth quarter of 2006.
"Although sales of replacement handsets in more mature markets during the third quarter were not as buoyant as we have been accustomed to, they were offset by continuing momentum in sales to first-time buyers in emerging markets", said Carolina Milanesi, principal analyst for mobile terminals research at Gartner, based in Egham. "We have also started to see increasing sales of replacement models in some emerging markets, which helped push up total sales in the third quarter".
Milanesi added, "In a market where players compete on price, technology and strategic partnerships, it is impossible to believe that life is not getting much tougher for the smaller vendors. Nokia, Motorola and Samsung accounted for 68 per cent of worldwide mobile sales in the third quarter of 2006."
Nokia retained its worldwide No. 1 position with 35.1 per cent market share, gaining 2.6 per centage points compared to the same period last year. Nokia increased its market share in all regions except North America, and also regained the top spot in Latin America after losing it to Motorola a year ago.
While Motorola increased its worldwide market share in the third quarter of 2006, the company experienced challenges in some regions. It lost the No. 1 spot in Latin American and its No. 2 position in Western Europe and in the Eastern Europe, the Middle East and Africa region. The Krzr is struggling to enjoy the same reception that greeted the Razr, and the Motofone may not be available until 2007. Christmas might not be so jolly for Motorola in some markets.
After a shaky first half of the year, Samsung recorded a healthy third quarter with sales accounting for more than 30 million units. Thanks to products such as the D900 and E900, Samsung was able to regain second place in the markets in Western Europe, Eastern Europe, the Middle East and Africa. "Samsung has won consumers back thanks to finding a more personal approach to design and features and by embracing the trend for slim devices", Milanesi said.
"Sony Ericsson had an exceptional quarter selling 19.4 million units in the third quarter of 2006 and gaining one per centage point year-on-year", Milanesi added. "The company’s success was a result of building a wider portfolio of successful products rather than counting on a single product. It also focused on better planning to avoid the supply problems that have limited its potential in the past."
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