Symbian growth slows in Q1 due to fewer new models

By Tarmo Virki

PARIS, May 20 (Reuters) - British mobile software company Symbian reported a sharp slowdown in growth, as the global economic slowdown weighs on demand for multimedia phones and just a few new models reached the market in the last quarter.

Shipments rose just 17 percent to 18.5 million units in January through March, compared with more than 50 percent growth seen in the previous quarters, Symbian said on Tuesday.

"Demand for mid- to high-tier consumer handsets continues to suffer from the weakening economy in both (the) U.S. and western Europe," Nomura analyst Richard Windsor wrote in a note.

The company, nearly half-owned by Finnish handset maker Nokia Oyj (NOK1V.HE), said turnover rose 5 percent to 43.5 million pounds ($85 million) in the three months compared with last year, while average royalties per unit fell to $4.10 from $4.50.

Symbian aims to keep growing by enabling its software, which allows the Internet to be used on a cellphone, on cheaper models.

"Seasonality and lack of new products slowed growth in the quarter," said Geoff Blaber, analyst at CCS Insight. "Significant new Symbian products from licensees such as Nokia aren't due to ship until late Q2 and early Q3."

Nokia's Chief Financial Officer Rick Simonson said on Monday the smartphone market would grow about 50 percent to up to 180 million units in 2008, from 120 million in 2007.

"Maybe its 50 or 55 or 45 percent. Who knows ... That market is growing at a fast pace compared to the overall market. I don't see that changing," Simonson told the Reuters Global Technology, Media and Telecoms Summit.

Symbian products are used in around 7 percent of mobile phones worldwide, but it is the dominating software among multimedia phones. (Editing by David Holmes)