World top 5 mobile manufacturers

Sales of mobile phones have recorded growth for the third quarter in succession, with a 14.5% year-on-year increase over the last quarter according to IDC.

With 317.5 million units sold between April and June 2010, the world mobile phone market is in good health. Sales of standard phones in emerging nations and the increasing high-end smartphone selection are stimulating the demand.

Samsung retains second place on the podium with a 20% market share, while Nokia is gradually being caught up. Almost entirely absent from the lucrative intelligent touch-phone market, Nokia is, however, still the overall leader by quite some distance with a 35% share.

Samsung, very much involved in the development of Android and its in-house OS, Bada, is pursuing its steamroller strategy, flooding all sectors of the market with all sorts of devices from the low- to high-end. This policy is bearing its fruits with 68 million units sold over the period.

Nokia, stuck in its Symbian tower, is struggling to play catch-up in the high-end segment. With net profits down by 40% in the second quarter, the firm is gradually leaving its years of glory behind it. The development of the brand in emerging countries and the volume of basic phones sold did however allow it to retain its position as no.1 with 111 million units sold. The competition continues to take chunks out of this share, however, and HTC, Apple and Motorola, though absent from the top 5, represent a real menace for the Finish company.

Competition is reducing margins

The other Korean manufacturer, LG, though less productive than Samsung, is still third with a market share of 9.6%.

The Canadian firm, RIM, number 4, has moved up a place. RIM recorded growth in volumes in the order of 40% over the year and can now claim a share of 3.5% of total sales. RIM, whose move from the pro to the general consumer sector has been a brilliant success, will attempt to continue to grow over the next months with the imminent arrival of its new OS, BlackBerry 6, that is optimised for the internet. It will be accompanied by a touch-screen smartphone with a full keyboard.

Sony-Ericsson is still in 5th position in terms of market share in spite of a 20% fall in sales, and has a market share equal to RIM (3.5%).

In terms of value, the top three manufacturers have all seen their margins falling over the second quarter. Indeed, although the smarphone segment has generated more value than any other range, the strength of the competition is already putting pressure on manufacturers' margins.



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