Mobile sales in 2005

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Worldwide mobile phone sales totaled 816.6 million units in 2005, a 21 percent increase from 2004, as the leading six vendors increased their share of the market at the detriment of smaller vendors.

The top six vendors accounted for 79.4 percent of worldwide mobile phone sales in 2005. These leaders experienced a steady increase in market share throughout the year, as their market share increased from 78 percent in the first quarter to 84 percent in the fourth quarter of 2005.

In the fourth quarter of 2005, the mobile phone market remained strong with sales exceeding 235 million units (see Table 1).

Table 1. Worldwide Mobile Terminal Sales to End-Users in 4Q05 (Thousands of Units)

Note * This table includes integrated digital enhanced network (iDEN) terminals. It excludes original design manufacturers to original equipment manufacturer shipments.

Nokia remained the worldwide leader with 32.5 percent of all mobile phone sales in 2005 (see Table 2). It now has a market share that is more than double that of its nearest competitor in Europe and Asia, and more than three times its nearest competitor in Eastern Europe, the Middle East and Africa. After a difficult 2004, Nokia bounced back bringing to market successful products like the 6680, highly stylish products such as the 8800 and it took the lead in the Wideband Code Division Multiple Access (WCDMA) market with products such as the n70.

With sales just under 42 million units in the fourth quarter of 2005, Motorola retained the number two spot in Western Europe and at a world-wide level. It remained the preferred brand in North America and displaced Samsung from the number two spot in Asia Pacific. In 2005, "thin" was definitively better for Motorola that recorded the largest market share growth among the top manufacturers in 2005.

Samsung remained in the third position in the fourth quarter of 2005 with sales totaling 28.4 million units. For 2005 its market share remained static at 12.7 percent, with only a 0.1 percentage point gained from 2004, widening the gap with Motorola. This is mainly due to Samsung favoring margins over market share and the decision not to enter the price war in the emerging markets.

Table 2. Worldwide Mobile Terminal Sales to End-Users in 2005 (Thousands of Units)

Note * This table includes integrated digital enhanced network (iDEN) terminals. It excludes original design manufacturers to original equipment manufacturer shipments and Code Division Multiple Access Wireless Local Loop (CDMA WLL)

Note ** Siemens results for 2005 are based on sales in the first three quarters of 2005. Fourth quarter results are included with BenQ Mobile due to the company's acquisition of Siemens
Source.

Regional Analysis
In Western Europe, sales of mobile phones totaled 49.1 million units in the fourth quarter of 2005 and 164 million units in 2005. Consumers took advantage of Christmas promotions and upgraded their phones to newer and trendier phones.

The same trend of upgrading to trendier phones occurred in the more mature markets in Central Eastern Europe, the Middle East and Africa (CEMEA), as first time subscribers continued to join networks and mobile phone sales for the year reached 153.5 million units.

In North America, the fourth quarter was a record quarter with mobile phone sales reaching 41.3 million units. In 2005, sales reached 148.4 million units.

Sales of mobile phones in Latin America reached nearly 102 million units in 2005, a 40 percent increase from 2004.

In Asia/Pacific, mobile phone sales reached 56.4 million units in the fourth quarter of 2005 and 204 million units in 2005. Sales in the region were fuelled by key markets such as China and India.

Mobile phone sales in Japan totaled 11.7 million units in the fourth quarter of 2005, and totaled 45 million units for the year. Music player functionality fuelled replacement sales especially by young users.