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Entry level phones help grow mobile phone sales

It’s no secret that growing markets and entry-level phones sold in these markets contribute significantly to the growth of the mobile phone sales. What is surprising is that even mature markets like North America contribute prominently in purchase of entry-level phones. With new versions of smart phones teamed with hi-end communication features hitting the market every few days, one would have thought that mature markets in US and Europe would grow only in this sector.

This quarter looked good for mobile phone sales and a pecking order also emerged listing Nokia as the market leader with a hard-to-beat market lead. Nokia and Motorola together have managed to capture fifty percent of the total mobile phone market and Motorola has gained ground over Samsung by over ten million units.

So what is the strategy being used by the mobile phone companies? Think Global and act local seems to be the maxim in practice here. Mobile phone manufacturers are working harder towards meeting localization demands even if it is squeezing their profit margins in the process. The entry-level handsets are growing the market not only in Asia Pacific but also the Middle East and Africa.

Top 5 Vendors, Worldwide Mobile Phone Shipments and Market Share, 2Q 2005 (Preliminary)

Rank Vendor 2Q 2005 Shipments 2Q Market Share
1 Nokia 60,800,000 32.2%
2 Motorola 33,900,000 18.0%
3 Samsung 24,400,000 12.9%
4 LG Electronics 12,100,000 6.4%
5Sony Ericsson 11,800,000 6.3%
 Others 45,700,000 24.2%
 Total 188,700,000 100.0%

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