Global Handset Shipments Fall 8 Percent in Q2 2009, but Showing Signs of Recovery

BOSTON--(Business Wire)--
According to the latest research from Strategy Analytics, global mobile handset
shipments fell 8 percent year-over-year, to reach 273 million units in Q2 2009.
The rate of decline was slower than the previous quarter, as the market showed
tentative signs of stabilization.

Bonny Joy, Senior Analyst at Strategy Analytics said, "Global mobile handset
shipments fell to 273 million units during Q2 2009, down 8 percent from 297
million units in Q2 2008. The eight-percent shrinkage was a noticeable
improvement on the huge declines recorded of minus 14 percent in Q1 2009 and
minus 11 percent during Q4 2008."

Neil Mawston, Director at Strategy Analytics, added, "We believe the relative
upturn in the global handset market has been driven by improved consumer
confidence in some regions, such as China, and by partial restocking of some
retailers` depleted supplies. Growth is certainly still available for those
handset makers with compelling products and strong brands. For example, Samsung
grew worldwide shipments a healthy 14% during the quarter, as consumers and
carriers showed high interest in their touchphone models, such as Star and Jet."

Other findings from Strategy Analytics` Q2 2009 Global Handset Market Share
Update report include:

* LG Electronics shipped 29.8 million handsets worldwide during Q2 2009, for a
record marketshare of 11%. An attractive portfolio of touchscreen QWERTY phones
and increased distribution channels have been among the drivers of its success;
* Motorola shipped a better-than-expected 14.8 million handsets worldwide in Q2
2009, for 5% marketshare. The operating margin for its handset division improved
sequentially and an aggressive cost-cutting program is benefiting the company;
* Apple shipped a better-than-expected 5.2 million iPhones worldwide in Q2 2009,
for 1.9% marketshare. Apple launched its new 3GS model during the quarter and we
believe Apple is developing a rolling pattern of 1-year upgrade-cycles for its
flagship iPhone family in an attempt to drive higher replacement rates among
consumers.

Global Mobile Handset Shipments and Marketshare - Top 5 Vendors

Global Handset Shipments (Millions of Units) 2007 Q1 '08 Q2'08 Q3 '08 Q4 '08 2008 Q1'09 Q2 '09
Nokia 437.1 115.5 122.0 117.8 113.1 468.4 93.2 103.2
Samsung 161.1 46.3 45.7 51.8 52.8 196.6 45.8 52.3
LG 80.5 24.4 27.7 23.0 25.7 100.8 22.6 29.8
Motorola 159.0 27.4 28.1 25.4 19.2 100.1 14.7 14.8
Sony Ericsson 103.4 22.3 24.4 25.7 24.2 96.6 14.5 13.8
Others 181.5 47.5 49.4 60.0 58.8 214.8 53.7 59.1
Total 1122.6 283.4 297.3 303.8 293.8 1177.3 244.5 273.0

Global Handset Vendor Marketshare % 2007 Q1 '08 Q2'08 Q3 '08 Q4 '08 2008 Q1'09 Q2 '09
Nokia 38.9% 40.8% 41.0% 38.8% 38.5% 39.8% 38.1% 37.8%
Samsung 14.4% 16.3% 15.4% 17.1% 18.0% 16.7% 18.7% 19.2%
LG 7.2% 8.6% 9.3% 7.6% 8.7% 8.6% 9.2% 10.9%
Motorola 14.2% 9.7% 9.5% 8.4% 6.5% 8.5% 6.0% 5.4%
Sony Ericsson 9.2% 7.9% 8.2% 8.5% 8.2% 8.2% 5.9% 5.1%
Others 16.2% 16.8% 16.6% 19.8% 20.0% 18.2% 22.0% 21.6%
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Total Growth Year-over-Year 12.0% 14.7% 14.8% 5.7% -10.7% 4.9% -13.7% -8.2%

About Strategy Analytics:

Strategy Analytics is a global, independent research and consulting firm. The
company is headquartered in Boston, USA, with offices in the UK, France,
Germany, Japan, South Korea and China. Visit www.strategyanalytics.com for more
information.

Strategy Analytics
Europe Contact:
Neil Mawston, +44 1908 423 628
NMawston@strategyanalytics.com
or
USA Contact:
Bonny Joy, +1 617-614-0708
BJoy@strategyanalytics.com
or
Asia Contact:
Thomas Kang, +82 10 2874 8133
tkang@strategyanalytics.com

Copyright Business Wire 2009

http://www.businesswire.com/news/home/20090730005592/en