| Author |
Sony Ericsson reclaims No. 4 handset spot from LG |
senninha
Joined: Jan 05, 2003
Posts: > 500
PM |
AMSTERDAM -- Sony Ericsson reclaimed the No. 4 position in the global handset market, pipping LG Electronics, on strong demand for its Walkman and camera phones, a survey found yesterday.
The Japanese Swedish handset venture grabbed a 6.7% market share in the third quarter, up from 6.2% in the second quarter of 2005, while LG was stagnant at 6.5%, market research group Gartner said.
The switch is remarkable, because LG Electronics from South Korea had reported stronger unit sales than Sony Ericsson in the third quarter, measured in shipments to distributors.
But Gartner, which measures sales to end users rather than to resellers and distributors, said Sony Ericsson phones flew off the shelves and the vendor could have sold more. Phones from LG Electronics, on the other hand, remained partly unsold.
"LG has built inventory with distributors in the Asia Pacific and also in the United States. It is partly voluntary, in the run-up to Christmas," said analyst Carolina Milanesi.
Sony Ericsson, true to a history of logistical mishaps, introduced two hugely successful new models with 2 megapixel autofocus cameras, its first Walkman phone 800 and the K750, and then it could not meet demand.
"Sony Ericsson, like always, had some production issues," Ms. Milanesi said.
The top three remained unchanged, with Nokia from Finland extending its lead to 32.6% from 31.9% on the back of a widening product portfolio and good availability of cheap handsets in developing markets.
Motorola from the United States also increased its market share, by almost a full percentage point to 18.7%, as it was firing on many cylinders. Its high-end thin RAZR model continued to be popular, while in the low-end it is offering some of the cheapest phones available, under $40, for markets such as India, China, Africa and parts of Latin America.
Samsung Electronics, suffering like its South Korean rival LG, was the only top five player to lose market share, compared with the second quarter and the year-ago period.
The decline is significant, because the South Korean manufacturers have stormed into the top five in recent years with a line-up of technically advanced phones with musical ringtones and color screens, months or even a year ahead of rivals.
Now, however, they are missing out on the explosive demand for ultra-cheap models which they do not make, while the competition has closed the technology gap.
"Samsung is still not addressing the entry-level market, while Nokia and Motorola are really powering ahead," Ms. Milanesi said.
Demand for ultra-cheap handsets will lead to sales of 810 million phones to consumers this year, up from 674 million in 2004, Mr. Gartner predicts. The market has defied all expectations, as initial 2005 sales projections started at 730 million units.
The big losers, however, were the vendors that did not make it into the top five. They continued to lose market share and only generate 23% of global unit sales, versus 24.7% in the second quarter and almost 29% a year ago.
The big vendors increasingly enjoy economies of scale and benefit from strong distribution and their global brands, while severe price competition is hurting smaller players. -- Reuters | |
|
Kryptik
Joined: Jun 24, 2005
Posts: > 500
From: Port Elizabeth, S.Africa
PM |
I've heard that SE will be targeting the low-end market here next year, which is sure to bode well, since they're offering phones like the K300 at a really low price, lower than anything else from other manufacturers that i'm aware of, with the same features- camera, colour screen, mp3, etc etc
This message was posted from a Nokia |
pkimshk
Joined: Mar 29, 2005
Posts: 90
From: USA
PM |
Wow that awsome...
Good Job SE.. | |
|
Access the forum with a mobile phone via esato.mobi
|
Posted: 2005-11-23 03:10
