Nokia handset shipments rise by nearly 11 million units in 3Q, says iSuppli
Nokia increased its global mobile-handset shipments by a stunning 10.9 million units in the third quarter of 2007 compared to the second quarter, according to research firm iSuppli.
The Finnish mobile-handset sales leader increased its shipments to 111.7 million units in the third quarter, up 10.8% from 100.8 million in the second quarter. This gave the company a global market share of 39.5%, up from 37.9% in the second quarter, helping it to pad its market dominance, noted iSuppli.
"Nokia is capitalizing on the increasing popularity of multimedia- and business-oriented applications for mobile phones," said Tina Teng, analyst, wireless communications, for iSuppli. "The company's shipments of 'convergence' mobile phones that integrate multimedia and smartphone features grew by 53.8% in the third quarter of 2007 compared to the same period in 2006."
Nokia also remained the leader in terms of operating profit in the third quarter. The company's mobile device business unit achieved an exceptionally-healthy 22.2% operating margin during the period. This compares to an average operating margin of 10.5% for the top-five mobile-handset suppliers in the third quarter.
The only disappointment in Nokia's third-quarter results was its performance in the Americas region. Nokia in the third quarter suffered a unit-shipment decline of 12.7% in Latin America and of 1.7% in North America compared to the same period in 2006.
A 3Q to remember
The strong results from Nokia came during a robust period for the global mobile-handset business and its leading players. Worldwide mobile phone shipments during the period amounted to 283 million units, up 6.4% from 266 million units in the second quarter and a 15.4% increase from 245.3 million units in the third quarter of 2006, according to iSuppli.
High first-time sales of phones in emerging markets and high replacement rates in Europe were the major factor driving the growth.
The top-five mobile handset suppliers benefited from the healthy growth, with all of these companies increasing their shipments during the third quarter compared to the second.
Combined shipments for these companies rose 9.6% during the third quarter compared to the second. At this margin of expansion, these companies outgrew the overall market and thus gained aggregate market share at the expense of the smaller suppliers.
Samsung soars again
While Nokia's unit shipment gain was impressive, Samsung Electronics of South Korea actually posted a slightly larger increase on a percentage basis, helping the company to maintain the second rank in the industry.
Samsung's global mobile-handset shipments rose to 42.6 million units in the third quarter, up 13.9% from 37.4 million in the second quarter. Compared to the third quarter of 2006, Samsung's shipments rose by 38.8%, the highest rate of all the top-five mobile-handset makers.
This boosted Samsung's market share to 15.1%, up from 14.1% in the second quarter, giving the company a 2.2 percentage point lead over number three ranked Motorola of the United States. This is up from a 0.7-point gap in the second quarter.
"Samsung's strong performance was due to impressive increases in shipments in the European and Americas regions," Teng said. "The company's shipments in Europe and the Americas rose by 28.1% and 26.6% respectively in the third quarter. This more than offset the 6% sequential decline in shipments in Asia during the same period."
Samsung has chosen not to participate in the ultra-low cost handset (ULCH) market and instead has put increased focus on high-end, high-margin 3G handsets. This strategy paid off, with the company boosting its average operating margin by US$1 during the period.
The company in the third quarter yielded a 12.3% operating profit margin, up from 8.4% in the second quarter.
Motorola on the comeback trail?
Based on iSuppli's preliminary estimate of Motorola's share, the company shipped 36.5 million mobile handsets during the third quarter, up 2.8% from 35.5 million in the second quarter. This lagged the handset market's overall shipment growth rate of 6.4%, but kept Motorola's market share fairly steady at around 13%. However, on an on-year basis, Motorola's shipments plunged by 32.7%, making it the only company not to post an increase on an annual basis in the third quarter.
Motorola in the second quarter lost its long-time number two ranking to Samsung. The company struggled to achieve an operating profit in the first and second quarters.
"Despite Motorola's recent woes, there are signs the company is gradually regaining its footing in the global mobile handset market," Teng said. "With its new product line coming out during the holiday season, Motorola should be able to achieve continued growth in shipment volume during the fourth quarter."
Final figures on Motorola's shipments will be available after it issues its third-quarter results later this week.
LG lives large
LG was the clear leader in terms of volume-shipment percentage growth in the third quarter, with its sales rising by 14.7% sequentially. The company's global mobile-phone shipments increased to 21.9 million during the third quarter, up from 19.1 million in the second quarter.
However, all the growth was driven by emerging markets such as the Middle East, Latin America, India and China, as was reflected in its average selling price (ASP). Slow sales in North America and Europe resulted in LG's mobile-handset ASP falling to US$124, down 18.6% from US$152.3 in the second quarter.
Despite a revenues decline of 7.9% measured in South Korean won, LG still managed to maintain its operating profit at 8.4% in the third quarter, noted iSuppli.
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The Finnish mobile-handset sales leader increased its shipments to 111.7 million units in the third quarter, up 10.8% from 100.8 million in the second quarter. This gave the company a global market share of 39.5%, up from 37.9% in the second quarter, helping it to pad its market dominance, noted iSuppli.
"Nokia is capitalizing on the increasing popularity of multimedia- and business-oriented applications for mobile phones," said Tina Teng, analyst, wireless communications, for iSuppli. "The company's shipments of 'convergence' mobile phones that integrate multimedia and smartphone features grew by 53.8% in the third quarter of 2007 compared to the same period in 2006."
Nokia also remained the leader in terms of operating profit in the third quarter. The company's mobile device business unit achieved an exceptionally-healthy 22.2% operating margin during the period. This compares to an average operating margin of 10.5% for the top-five mobile-handset suppliers in the third quarter.
The only disappointment in Nokia's third-quarter results was its performance in the Americas region. Nokia in the third quarter suffered a unit-shipment decline of 12.7% in Latin America and of 1.7% in North America compared to the same period in 2006.
A 3Q to remember
The strong results from Nokia came during a robust period for the global mobile-handset business and its leading players. Worldwide mobile phone shipments during the period amounted to 283 million units, up 6.4% from 266 million units in the second quarter and a 15.4% increase from 245.3 million units in the third quarter of 2006, according to iSuppli.
High first-time sales of phones in emerging markets and high replacement rates in Europe were the major factor driving the growth.
The top-five mobile handset suppliers benefited from the healthy growth, with all of these companies increasing their shipments during the third quarter compared to the second.
Combined shipments for these companies rose 9.6% during the third quarter compared to the second. At this margin of expansion, these companies outgrew the overall market and thus gained aggregate market share at the expense of the smaller suppliers.
Samsung soars again
While Nokia's unit shipment gain was impressive, Samsung Electronics of South Korea actually posted a slightly larger increase on a percentage basis, helping the company to maintain the second rank in the industry.
Samsung's global mobile-handset shipments rose to 42.6 million units in the third quarter, up 13.9% from 37.4 million in the second quarter. Compared to the third quarter of 2006, Samsung's shipments rose by 38.8%, the highest rate of all the top-five mobile-handset makers.
This boosted Samsung's market share to 15.1%, up from 14.1% in the second quarter, giving the company a 2.2 percentage point lead over number three ranked Motorola of the United States. This is up from a 0.7-point gap in the second quarter.
"Samsung's strong performance was due to impressive increases in shipments in the European and Americas regions," Teng said. "The company's shipments in Europe and the Americas rose by 28.1% and 26.6% respectively in the third quarter. This more than offset the 6% sequential decline in shipments in Asia during the same period."
Samsung has chosen not to participate in the ultra-low cost handset (ULCH) market and instead has put increased focus on high-end, high-margin 3G handsets. This strategy paid off, with the company boosting its average operating margin by US$1 during the period.
The company in the third quarter yielded a 12.3% operating profit margin, up from 8.4% in the second quarter.
Motorola on the comeback trail?
Based on iSuppli's preliminary estimate of Motorola's share, the company shipped 36.5 million mobile handsets during the third quarter, up 2.8% from 35.5 million in the second quarter. This lagged the handset market's overall shipment growth rate of 6.4%, but kept Motorola's market share fairly steady at around 13%. However, on an on-year basis, Motorola's shipments plunged by 32.7%, making it the only company not to post an increase on an annual basis in the third quarter.
Motorola in the second quarter lost its long-time number two ranking to Samsung. The company struggled to achieve an operating profit in the first and second quarters.
"Despite Motorola's recent woes, there are signs the company is gradually regaining its footing in the global mobile handset market," Teng said. "With its new product line coming out during the holiday season, Motorola should be able to achieve continued growth in shipment volume during the fourth quarter."
Final figures on Motorola's shipments will be available after it issues its third-quarter results later this week.
LG lives large
LG was the clear leader in terms of volume-shipment percentage growth in the third quarter, with its sales rising by 14.7% sequentially. The company's global mobile-phone shipments increased to 21.9 million during the third quarter, up from 19.1 million in the second quarter.
However, all the growth was driven by emerging markets such as the Middle East, Latin America, India and China, as was reflected in its average selling price (ASP). Slow sales in North America and Europe resulted in LG's mobile-handset ASP falling to US$124, down 18.6% from US$152.3 in the second quarter.
Despite a revenues decline of 7.9% measured in South Korean won, LG still managed to maintain its operating profit at 8.4% in the third quarter, noted iSuppli.
source
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