Samsung overtakes Motorola in cell phone sales
Samsung has replaced Motorola as the world s number-two cell phone handset supplier.
Research firm Gartner says that after a particularly strong quarter in North America, the Korean manufacturer was responsible for 13.8% of global handset sales, with Motorola, US, just behind on 13.4%.
Both companies still lag well behind the market leader Nokia of Finland, which increased its own share of the market to 30.9% in the third calendar quarter of the year.
Cell phone handset sales are a key indicator for compound semiconductor device manufacturers, as the application represents the largest market for GaAs-based RFICs and high-brightness LEDs.
Total phone sales showed unexpectedly strong growth during the period to reach 167 million units, a 26% increase on last year s figure.
"Historically, the third quarter is seldom strong," said Gartner s Carolina Milanesi. "The industry expected sales to be flat in preparation for Christmas demand. However, all regions apart from Japan registered year-on-year growth."
In fact, the Japanese market saw a 12.8% drop in unit sales compared with the same time last year, when consumer demand for camera phones peaked. "Vendors are struggling to maintain profitability due to lower margins on 3G handsets," reported Gartner.
Away from Japan, demand remained strong, with the North American market growing 22.6% and Latin America seeing a 66% surge, driven largely by demand from consumers in Mexico and Brazil.
Although Nokia remains the clear market leader, Gartner principal analyst Ben Wood had a word of warning for the company. "Breaking back through the 30% barrier will be an important psychological boost after a disappointing start to the year," he said.
"Nokia must maintain this momentum and address shortcomings in the code division multiple access (CDMA) market to ensure it sustains its position."
US analyst company iSuppli recently increased its forecast for total handset sales in 2004 to 675 million units after reporting 170 million unit sales for the third quarter, slightly higher than Gartner s figure.
After a relatively flat period from 2000 to 2002, sales of cell phones have risen dramatically, with unit growth of around 20% year-on-year (see related stories).
