Ending five consecutive quarters of retrenchment, the worldwide mobile phone market grew 11.3% in the fourth quarter, as demand grew from the Asia/Pacific region and the U.S., reported IDC's Worldwide Mobile Phone Tracker. Nokia continued to top shipments and marketshare, closely followed by Samsung Electronics.
Fourth-quarter mobile phone shipments grew to 325.3 million units from 292.4 million units in the fourth quarter of 2008.
Nokia Corp. (NOK) shipped 126.9 million units in the fourth quarter, up 12.2% from 113.1 million units shipped last year. This was the company's highest quarterly total in two years. Nokia had a market share of 39.0%, up from 38.7% share reported in the fourth quarter 2008.
Samsung Electronics Co. Ltd. (SSNLF.PK, SSNNF.PK) came second shipping 68.8 million units, up 30.3% from the year-ago quarter. Market share for the company grew to 21.1% in the quarter from 18.1% share in the prior-year period.
In the fourth quarter of 2009, LG Electronics Ltd. (LGERF.PK) shipped 33.9 million units, up 31.9% from 25.7 million units shipped in 2008. However, operating margins dropped to 1.3% in the fourth quarter from 8.4% in the third quarter, reflecting average selling price declines, higher marketing expenses, and channel expansion within emerging markets. Market share for LG rose to 10.4% from 8.8% in the previous year.
Sony Ericsson's fourth-quarter shipment declined 39.7% to 14.6 million units from 24.2 million units shipped last year. However, the joint venture's gross margins rose to 23% from 15% on a year-over-year basis, due to sales of new higher-margin mobiles. Motorola Inc. (MOT) shipped 12 million units, down 37.5% from 19.2 million units shipped in the last quarter of 2008.
Sony Ericsson market share in the quarter slipped to 4.5% from 8.3% in the prior year quarter, while Motorola's market share declined to 3.7% from 6.6% in the 2008 quarter.
According to the report, vendors shipped 1.13 billion units on a cumulative worldwide basis in 2009, down 5.2% from the 1.19 billion units shipped in 2008. IDC believes that the converged mobile device market grew nearly 30% from last year.
Region-wise, In Asia/Pacific market, excluding Japan, strong gains were witnessed in the fourth quarter, reflecting a good start to recovery. Touchscreen-enabled devices remained a hot segment of the market. For the region, 2009 as a whole was relatively flat, compared to last year. Low-cost handsets were in demand in China and India due to the recession.
In the North American market, converged mobile devices remained in high demand in the fourth quarter due to lower priced devices and rate plans as well as greater user and carrier interest. The market finished 2009 relatively strong posting the second-highest regional growth after the Asia/Pacific region, excluding Japan. Feature phones accounted for the majority of shipments in the year, despite an overall volume decrease from last year. In Canada, mobile phone shipment volumes got a boost from the introduction of a new wireless network, which increased the demand for smartphones, particularly the Apple iPhone.
In the Western Europe, handset market grew in the fourth quarter both sequentially and year-over-year. LG Electronics and Samsung performed particularly well in the traditional mobile phones segment, while Apple, Nokia, and Research In Motion did well in the smartphone market. On a full-year basis, shipments into the region declined, as the improved second-half performance was not enough to offset the declines in the first half, IDC said.
In Central and Eastern Europe, Middle East, and Africa, or CEMA, vendors found improvement in certain areas during the quarter, but overall sales in the region were focused on entry-level handsets targeted at first-time users.
The Latin American mobile phone market shrunk in the fourth quarter. However, the performance was better than the double-digit declines posted in previous quarters. Stronger Brazilian currency lowered prices for mobile phone imports, spurring greater demand. In Argentina, channel partners purchased additional product ahead of a new tax rate that was effective December. IDC added that the popularity of pre-paid service options across the regions included more converged mobile devices, stoking greater demand from vendors.
The market for smartphones is expected to continue to gain momentum as device selection increases and price decreases continue into 2010 and beyond, IDC added.
IDC expects that in 2010 economic recovery and pent-up demand would create positive conditions for handset vendors in developed and emerging markets.
Key handset vendors expect to exceed their 2009 shipment levels with refreshed portfolios, leveraging interest in touchscreens, messaging devices, and converged mobile devices, the report noted.
Samsung said today that it expects a 10% growth in handset market in 2010. The company expects the market to recover in the year due to economic recovery and improved consumer sentiment, which is expected to drive smartphone demand in developed markets and replacement demand in other markets.
Thursday, Nokia said it expects a flat market in euro terms for the mobile and fixed infrastructure and related services market in 2010. Further, the company continues to expect industry mobile device volumes to be up 10% in 2010.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.