El Segundo, Calif., Oct. 24, 2007—How
much did Nokia increase its mobile-phone unit shipments in the third quarter?

 

·         
More than the total second-quarter
mobile-handset shipments of Fujitsu, Ningbo Bird, TCL-Alcatel, Panasonic,
Pantech & Curitel, and UTStarcom—combined.

·          More than the collective increases
in mobile-phone shipments from the other four top mobile-handset suppliers in
the third quarter.

·          More than the population of the Czech Republic.

 

Indeed,
Nokia’s third-quarter gains were impressive, with its global mobile-handset
shipments rising by a stunning 10.9 million units compared to the second
quarter. The Finnish mobile-handset sales leader increased its shipments to
\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>“Nokia is\ncapitalizing on the increasing popularity of multimedia- and business-oriented\napplications for mobile phones,” said Tina Teng, analyst, wireless\ncommunications, for iSuppli. “The company’s shipments of ‘convergence’ mobile\nphones that integrate multimedia and smart-phone features grew by 53.8 percent\nin the third quarter of 2007 compared to the same period in 2006.”\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Nokia also\nremained the leader in terms of operating profit in the third quarter. The\ncompany’s mobile device business unit achieved an exceptionally-healthy 22.2\npercent operating margin during the period. This compares to an average\noperating margin of 10.5 percent for the Top-5 mobile-handset suppliers in the\nthird quarter.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>The only\ndisappointment in Nokia’s third-quarter results was its performance in the Americas\nregion.  Nokia in the third quarter suffered a unit-shipment decline of\n12.7 percent in Latin America and of 1.7 percent in North\n America compared to the same period in 2006.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>The\nattached table presents iSuppli’s estimate of third-quarter market share in the\nglobal mobile-handset market. Motorola’s market-share figures are considered\npreliminary until the company makes its official earnings announcement on\nThursday, Oct. 25. \u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\> \u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cb\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>A Q3 to\nremember\u003c/span\>\u003c/b\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>The strong\nresults from Nokia came during a robust period for the global mobile-handset\nbusiness and its leading players. Worldwide mobile phone shipments during the\nperiod amounted to 283 million units, up ",1]
);
//-->111.7 million units in the third quarter, up 10.8 percent from 100.8 million in
the second quarter. This gave the company a global market share of 39.5
percent, up from 37.9 percent in the second quarter, helping it to pad its
market dominance.

“Nokia is
capitalizing on the increasing popularity of multimedia- and business-oriented
applications for mobile phones,” said Tina Teng, analyst, wireless
communications, for iSuppli. “The company’s shipments of ‘convergence’ mobile
phones that integrate multimedia and smart-phone features grew by 53.8 percent
in the third quarter of 2007 compared to the same period in 2006.”

Nokia also
remained the leader in terms of operating profit in the third quarter. The
company’s mobile device business unit achieved an exceptionally-healthy 22.2
percent operating margin during the period. This compares to an average
operating margin of 10.5 percent for the Top-5 mobile-handset suppliers in the
third quarter.

The only
disappointment in Nokia’s third-quarter results was its performance in the Americas
region.  Nokia in the third quarter suffered a unit-shipment decline of
12.7 percent in Latin America and of 1.7 percent in North
America compared to the same period in 2006.

The
attached table presents iSuppli’s estimate of third-quarter market share in the
global mobile-handset market. Motorola’s market-share figures are considered
preliminary until the company makes its official earnings announcement on
Thursday, Oct. 25.

 

A Q3 to
remember

The strong
results from Nokia came during a robust period for the global mobile-handset
business and its leading players. Worldwide mobile phone shipments during the
period amounted to 283 million units, up \u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>High\nfirst-time sales of phones in emerging markets and high replacement rates in Europe were the major factor driving the growth.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>The Top-5\nmobile handset suppliers benefited from the healthy growth, with all of these\ncompanies increasing their shipments during the third quarter compared to the\nsecond.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Combined\nshipments for these companies rose 9.6 percent during the third quarter\ncompared to the second. At this margin of expansion, these companies outgrew\nthe overall market and thus gained aggregate market share at the expense of the\nsmaller suppliers.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\> \u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cb\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Samsung\nsoars again\u003c/span\>\u003c/b\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>While\nNokia’s unit shipment gain was impressive, Samsung Electronics Co. Ltd. of South Korea\nactually posted a slightly larger increase on a percentage basis, helping the\ncompany to maintain the second rank in the industry.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Samsung’s\nglobal mobile-handset shipments rose to 42.6 million units in the third\nquarter, up 13.9 percent from 37.4 million in the second quarter. Compared to\nthe third quarter of 2006, Samsung’s shipments rose by 38.8 percent, the\nhighest rate of all the Top-5 mobile-handset makers.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>This\nboosted Samsung’s market share to 15.1 percent, up from 14.1 percent in the\nsecond quarter, giving the company a 2.2 percentage point lead over No. 3\nranked Motorola Inc. of the United\n States. This is up from a 0.7-point gap in\nthe second quarter.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>",1]
);
//-->6.4 percent from 266 million units in
the second quarter and a 15.4 percent increase from 245.3 million units in the
third quarter of 2006.

High
first-time sales of phones in emerging markets and high replacement rates in Europe were the major factor driving the growth.

The Top-5
mobile handset suppliers benefited from the healthy growth, with all of these
companies increasing their shipments during the third quarter compared to the
second.

Combined
shipments for these companies rose 9.6 percent during the third quarter
compared to the second. At this margin of expansion, these companies outgrew
the overall market and thus gained aggregate market share at the expense of the
smaller suppliers.

 

Samsung
soars again

While
Nokia’s unit shipment gain was impressive, Samsung Electronics Co. Ltd. of South Korea
actually posted a slightly larger increase on a percentage basis, helping the
company to maintain the second rank in the industry.

Samsung’s
global mobile-handset shipments rose to 42.6 million units in the third
quarter, up 13.9 percent from 37.4 million in the second quarter. Compared to
the third quarter of 2006, Samsung’s shipments rose by 38.8 percent, the
highest rate of all the Top-5 mobile-handset makers.

This
boosted Samsung’s market share to 15.1 percent, up from 14.1 percent in the
second quarter, giving the company a 2.2 percentage point lead over No. 3
ranked Motorola Inc. of the United
States. This is up from a 0.7-point gap in
the second quarter.

\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Samsung\nhas chosen not to participate in the Ultra Low Cost Handset (ULCH) market and\ninstead has put increased focus on high-end, high-margin 3G handsets. This strategy\npaid off, with the company boosting its average operating margin by $1 during\nthe period.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>The\ncompany in the third quarter yielded a 12.3 percent operating profit margin, up\nfrom 8.4 percent in the second quarter.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\> \u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan\>\u003cb\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Motorola on the comeback trail?\u003c/span\>\u003c/b\>\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Based on\niSuppli’s preliminary estimate of Motorola’s share, the company shipped 36.5\nmillion mobile handsets during the third quarter, up 2.8 percent from 35.5\nmillion in the second quarter. This lagged the handset market’s overall\nshipment growth rate of 6.4 percent, but kept Motorola’s market share fairly\nsteady at around 13 percent. However, on a year-to-year basis, Motorola’s\nshipments plunged by 32.7 percent, making it the only company not to post an\nincrease on an annual basis in the third quarter.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Motorola\nin the second quarter lost its long-time No. 2 ranking to Samsung. The company struggled\nto achieve an operating profit in the first and second quarters.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>“Despite\nMotorola’s recent woes, there are signs the company is gradually regaining its\nfooting in the global mobile handset market,” Teng said. “With its new product\nline coming out during the holiday season, Motorola should be able to achieve\ncontinued growth in shipment volume during the fourth quarter.”",1]
);
//-->“Samsung’s
strong performance was due to impressive increases in shipments in the European
and Americas
regions,” Teng said. “The company’s shipments in Europe and the Americas rose
by 28.1 percent and 26.6 percent respectively in the third quarter. This more
than offset the 6 percent sequential decline in shipments in Asia
during the same period.”

Samsung
has chosen not to participate in the Ultra Low Cost Handset (ULCH) market and
instead has put increased focus on high-end, high-margin 3G handsets. This strategy
paid off, with the company boosting its average operating margin by $1 during
the period.

The
company in the third quarter yielded a 12.3 percent operating profit margin, up
from 8.4 percent in the second quarter.

 

Motorola on the comeback trail?

Based on
iSuppli’s preliminary estimate of Motorola’s share, the company shipped 36.5
million mobile handsets during the third quarter, up 2.8 percent from 35.5
million in the second quarter. This lagged the handset market’s overall
shipment growth rate of 6.4 percent, but kept Motorola’s market share fairly
steady at around 13 percent. However, on a year-to-year basis, Motorola’s
shipments plunged by 32.7 percent, making it the only company not to post an
increase on an annual basis in the third quarter.

Motorola
in the second quarter lost its long-time No. 2 ranking to Samsung. The company struggled
to achieve an operating profit in the first and second quarters.

“Despite
Motorola’s recent woes, there are signs the company is gradually regaining its
footing in the global mobile handset market,” Teng said. “With its new product
line coming out during the holiday season, Motorola should be able to achieve
continued growth in shipment volume during the fourth quarter.”\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Final\nfigures on Motorola’s shipments will be available after it issues its\nthird-quarter results later this week.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\> \u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cb\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>LG\nlives large\u003c/span\>\u003c/b\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>LG was the\nclear leader in terms of volume-shipment percentage growth in the third\nquarter, with its sales rising by 14.7 percent sequentially. The company’s\nglobal mobile-phone shipments increased to 21.9 million during the third\nquarter, up from 19.1 million in the second quarter.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>However,\nall the growth was driven by emerging markets such as the Middle East, Latin\nAmerica, India and China, as was\nreflected in its Average Selling Price (ASP).  Slow sales in North America\nand Europe resulted in LG’s mobile-handset ASP\nfalling to $124, down 18.6 percent from $152.3 in the second quarter.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Despite a\nrevenue decline of 7.9 percent measured in South Korean won, LG still managed\nto maintain its operating profit at 8.4 percent in the third quarter.\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\> \u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>For more\ninformation, please contact:\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\> \u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Jonathan\nCassell\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Editorial\nDirector and Manager, Public Relations\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>iSuppli\u003c/span\>\u003c/span\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>\nCorporation\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Office:\n408.654.1714\u003c/span\>\u003c/p\>\n\n\u003cp\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>Mobile\u003c/span\>\u003cspan style\u003d\"font-size:9.0pt;font-family:Verdana\"\>",1]
);
//-->

Final
figures on Motorola’s shipments will be available after it issues its
third-quarter results later this week.

 

LG
lives large

LG was the
clear leader in terms of volume-shipment percentage growth in the third
quarter, with its sales rising by 14.7 percent sequentially. The company’s
global mobile-phone shipments increased to 21.9 million during the third
quarter, up from 19.1 million in the second quarter.

However,
all the growth was driven by emerging markets such as the Middle East, Latin
America, India and China, as was
reflected in its Average Selling Price (ASP).  Slow sales in North America
and Europe resulted in LG’s mobile-handset ASP
falling to $124, down 18.6 percent from $152.3 in the second quarter.

Despite a
revenue decline of 7.9 percent measured in South Korean won, LG still managed
to maintain its operating profit at 8.4 percent in the third quarter.