The worldwide mobile phone market grew 11.3 percent in the fourth quarter of 2009 ending five consecutive quarters of retrenchment, according to a study by IDC. Vendors shipped 325.3 million units in Q4 compared to 292.4 million units in the year-earlier quarter. Vendors shipped a total of 1.13 billion units on a cumulative worldwide basis in 2009, down 5.2 percent from 1.19 billion in 2008. The Asia/Pacific market saw strong gains in Q4, while the Western European handset market grew on both a year-over-year and sequential basis in Q4. In CEMA, vendors found pockets of improvement during Q4, but overall sales in the region were focused on entry-level handsets targeted at first-time users. The North American market finished 2009 relatively strong. posting the second-highest regional growth after the Asia/Pacific region (excluding Japan). In Canada, mobile phone shipment volumes were buoyed by the introduction of a new network, which increased the demand for smartphones, particularly the Apple iPhone. The Latin American mobile phone market shrunk in Q4. However, the performance marked an improvement from the double-digit declines posted in previous quarters. The stronger Brazilian currency pushed prices for mobile phone imports lower, spurring greater demand. In Argentina, channel partners purchased additional product ahead of a new tax rate that came into effect in December.
Nokia ranked first in the market with 126.9 million shipments in Q4, which represented the company's highest quarterly total in two years, compared to 131.1 million shipments in the year-earlier quarter. The company had a 39 percent of the market share. The higher handset figures were boosted by improved smartphone sales. Samsung ranked second after shipping 68.8 million units, up from 52.8 million in the previous year’s quarter. The company had a 21.2 percent market share. LG Electronics followed in third position with 33.9 million shipments compared to 25.7 million previously, giving it a market share of 10.4 percent. However, LG's operating margins took a sharp drop from 8.4 percent in Q3 to 1.3 percent in Q4, reflecting average selling price declines, higher marketing expenses, and channel expansion within emerging markets. Sony Ericsson posted its sixth consecutive quarterly loss. However, the joint venture's gross margins rose to 23 percent from 15 percent on a year-over-year basis, thanks to sales of new higher-margin mobiles. The vendor's sales of 14.6 million handsets represented its highest shipment figure of the year thanks to the introduction of new models such as the Satio and Aino. Sony Ericsson ranked fourth with 14.6 million shipments, compared to 24.2 million a year earlier. The company’s market share was at 4.5 percent. Motorola posted its twelfth consecutive quarter of year-over-year shipment declines, but also reported its lowest year-over-year decline since the first half of 2008. Moreover, Motorola recorded an operating loss of USD 132 million, a reduction of nearly 80 percent from Q4 2008 levels. Motorola came in fifth with 12 million shipments and a market share of 3.7 percent. IDC anticipates that the worldwide mobile phone market will rebound in this year. Economic recovery mixed with pent-up demand will create positive conditions for handset vendors in both developed and emerging markets in this year. Meanwhile, key handset vendors expect to exceed their 2009 shipment levels with refreshed portfolios, leveraging interest in touchscreens, messaging devices, and converged mobile devices.
