The global handset market in the second quarter of 2010

The second-quarter numbers for the global handset market are in, and it's time to start parsing the information. Research firms Strategy Analytics and IDC released separate, detailed looks at market share, shipment and growth information for the world's Tier 1 cell phone makers and smartphone vendors.

(Don't forget to check out our wrap-up of the wireless industry in the second quarter, and our list of the top 10 U.S. wireless carriers.)

Top five global mobile phone vendors' market share, second quarter 2010:


Source: Strategy Analytics

Top five global mobile phone vendors' market share growth, first quarter 2009 to second quarter 2010:


Source: Strategy Analytics

The numbers:

Global Handset Shipments (Millions of Units)

2008

Q1'09

Q2'09

Q3'09

Q4'09

2009

Q1'10

Q2 '10

Nokia

468.4

93.2

103.2

108.5

126.9

431.8

107.8

111.1

Samsung

196.6

45.8

52.3

60.2

68.8

227.1

64.3

63.8

LG

100.8

22.6

29.8

31.6

33.9

117.9

27.1

30.6

RIM

23.5

7.3

8.0

8.5

10.7

34.5

10.6

11.2

Sony Ericsson

96.6

14.5

13.8

14.1

14.6

57.0

10.5

11.0

Others

292.4

61.1

66.0

67.7

82.4

277.2

71.1

79.8

Total

1178.3

244.5

273.1

290.6

337.3

1145.5

291.4

307.5

 

Global Handset Vendor Marketshare %

2008

Q1'09

Q2'09

Q3'09

Q4'09

2009

Q1'10

Q2 '10

Nokia

39.8%

38.1%

37.8%

37.3%

37.6%

37.7%

37.0%

36.1%

Samsung

16.7%

18.7%

19.1%

20.7%

20.4%

19.8%

22.1%

20.7%

LG

8.6%

9.2%

10.9%

10.9%

10.1%

10.3%

9.3%

10.0%

RIM

2.0%

3.0%

2.9%

2.9%

3.2%

3.0%

3.6%

3.6%

Sony Ericsson

8.2%

5.9%

5.1%

4.9%

4.3%

5.0%

3.6%

3.6%

Others

24.8%

25.0%

24.2%

23.3%

24.4%

24.2%

24.4%

26.0%

Total

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

 

Growth Year-over-Year %

2008

Q1'09

Q2'09

Q3'09

Q4'09

2009

Q1'10

Q2 '10

Nokia

7.2%

-19.3%

-15.4%

-7.9%

12.2%

-7.8%

15.7%

7.7%

Samsung

22.0%

-1.1%

14.4%

16.2%

30.3%

15.5%

40.4%

22.0%

LG

25.2%

-7.4%

7.6%

37.4%

31.9%

17.0%

19.9%

2.7%

RIM

92.6%

69.8%

42.9%

41.7%

40.8%

46.8%

45.2%

40.0%

Sony Ericsson

-6.6%

-35.0%

-43.4%

-45.1%

-39.7%

-41.0%

-27.6%

-20.3%

Others

-10.9%

-13.5%

-8.2%

-14.8%

17.0%

-5.2%

16.4%

20.9%

Total

5.0%

-13.7%

-8.1%

-4.3%

14.8%

-2.8%

19.2%

12.6%


Source: Strategy Analytics

Top three global smartphone vendors' market share, second quarter 2010:


Source: Strategy Analytics

U.S. smartphone operating system market share in the second quarter of 2010:


Source: Nielsen

U.S. smartphone vendor market share in the second quarter of 2010:


Source: Canalys

Handset market analysis:

IDC said the worldwide mobile phone market continued to show signs of improvement during the second quarter of 2010, driven primarily by smartphone vendors and companies outside the top five leaders worldwide. According to IDC, mobile phone vendors shipped a total of 317.5 million units during the second quarter, 14.5 percent from the 277.2 million units shipped during the second quarter of 2009. According to Strategy Analytics, lower-end 2G models in emerging markets and high-end 3G touchscreen phones in mature regions drove growth. Among the top-five brands, RIM and Samsung outgrew their major rivals, due to robust demand for Qwerty phones and touchphones. The firm said Apple held steady with 3 percent market share.

Vendor analysis:
        Nokia
--
IDC said Nokia faces challenges in the high-end of the smartphone market, against Chinese vendors within emerging markets, and from falling behind other vendors in the Americas. Still, the company should not be taken lightly with its strong brand, manufacturing and distribution.
--Strategy Analytics said the much-awaited flagship N8 smartphone, with an upgraded Symbian^3 user-experience, should arrive well in time for the European holiday season and help to stabilize profit margins during the second half of the year. However, the firm cautioned that a lack of retail presence and media coverage in the high-value U.S. 3G market mean the N8 may not meet its full global sales potential.
        Samsung
--IDC said Samsung experienced strong year-on-year growth via progress in the United States and emerging markets and success in its touchscreen devices. At the same time, the combination of soft demand in Europe, late launches of key smartphone models, and product mix adjustments resulted in revenue and profit decline for the quarter.
--Strategy Analytics said Samsung's multi-tier range of candy bars, sliders and touchphones are still selling relatively well. The Galaxy S smartphone, with a 1 GHz processor and 4-inch screen, is the vendor's next shot at the premium market and the firm said it has gotten off to a relatively good start.
        LG
--IDC said the launch of two Android-powered smartphones--the Ally and the Optimus Q--helped bolster LG's smartphone portfolio, while the continued success of the youth-oriented phones and messaging devices helped drive continued success in the traditional mobile phone market. But the firm said LG suffered financially from declines from an aging portfolio and expenses incurred from R&D and marketing.
--Strategy Analytics said it has been known for at least two years that LG's smartphone portfolio is weak, and that under-performance in a high-profit sub-segment has finally caught up with it. The firm said LG will need to deliver at least one flagship premium 3G smartphone with above-average usability and an attractive portfolio of fun media services.
        RIM
--IDC said RIM scored major gains due to its singular focus on smartphones.
--Strategy Analytics said RIM was the fastest growing handset vendor among the big five global players. However, the firm said there are some regional challenges facing the Canadian brand. Strategy Analytics said it believes Asia, Europe, Africa and South America were relatively healthy during the quarter, but RIM's North American position is still coming under pressure from Apple, Android and others. Much rides on RIM's forthcoming OS 6 upgrade.
        Sony Ericsson
--IDC said Sony Ericsson continued to make positive strides as the company realigned its focus, and that emphasis on its growing smartphone platform was key to its success for the quarter.
--Strategy Analytics said that, despite an improving hardware lineup, Sony Ericsson's services strategy remains a little confusing and its portfolio of multiple sub-brands, such as PlayNow Arena, needs attention.

Annual global handset shipment growth by vendor in the second quarter of 2010:


Source: Strategy Analytics

For more:

- see this Strategy Analytics release
- see this IDC release
- see these handset numbers from the first quarter of 2010
- see these handset numbers from the fourth quarter 2009
- see these handset numbers from the third quarter 2009
- see these handset numbers from the second quarter 2009
- see the wireless industry's performance so far in the second quarter

The global handset market in the second quarter of 2010
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