Nokia loses more share in 2nd quarter
By Jeffry Bartash, CBS.MarketWatch.com
The Finnish cell-phone giant accounted for 27.7 percent of all wireless phones shipped in the second quarter, down from 29.3 percent in the first three months of the year, according to IDC.
In the past nine months, Nokia's share of the global wireless market has fallen about 8 percentage points based on IDC data. At the end of the 2003 third quarter, the company controlled roughly 35 percent of the market.
Analysts say the sharp decline reflects the company's failure to anticipate a surge in demand for phones incorporating clamshell designs and other popular features. Nokia (NOK: news, chart, profile) has since moved to remedy that problem with the introduction of new phone models.
Like Nokia, U.S.-based Motorola (MOT: news, chart, profile) and Germany's Siemens also lost ground to up-and-coming rivals.
Motorola's portion of the market dropped to 14.7 percent from 16.6 percent in the first quarter. Siemens ended the second quarter with a 6.4 percent share, down from 8.4 percent in the first three months of the year.
At the same time, Sony Ericsson boosted its share to 6.4 percent from 5.8 percent in the first quarter, tying Siemens for fourth place.
Sony Ericsson has been on a roll in recent months, capitalizing on snazzy new designs that are chock full of features such as cameras and color screens. Sony Ericsson is a venture of Sony (SNE: news, chart, profile) and Ericsson (ERICY: news, chart, profile)
Samsung and LG Electronics, a pair of fast-rising Korean manufacturers, succeeded with a similar strategy.
Indeed, Samsung took third place globally, boosting its share to 13.9 percent from 13.1 percent in the first quarter. If current trends continue, Samsung could overtake Motorola later this year.
Yet analysts point out that Samsung focuses more on higher-end consumers, which could slow its growth unless it expands to other segments of the market.
LG, meanwhile, garnered 6.1 percent share, up from 5.5 percent. That put it in fifth place.
Altogether, those six companies produced 75 percent of the wireless phones shipped during the second quarter. That's up from 73.1 percent in the first quarter.
Total phone shipments rose 2.5 percent to 164.7 million from 152.7 million in the first three months of 2004, IDC calculated. And shipments were up 36.7 percent year-over-year, reflecting a rebound in the industry's overall fortunes.
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