IDC registers strong growth in mobile handset market

According to IDC, worldwide handset shipments grew by 19.2% year-over-year in the second quarter of 2003 — a sequential increase of 6.7%.

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By  Greg Wilson Published  August 3, 2003

The consumer demand for mobile telephony services is continuing to grow at a rapid pace. According to IDC, worldwide handset shipments grew by 19.2% year-over-year in the second quarter of 2003 — a sequential increase of 6.7%.

Nokia retained its top position in the market, while Sony Ericsson charged back into the market to seize the number five position from LG Electronics.

“Despite continued economic uncertainty worldwide, the threat of SARS, and concerns of terrorism, the mobile phone market recorded impressive results this past quarter,” says Ross Sealfon, research analyst in IDC's mobile device program.

“After remarkable success in Japan, cameraphones are attracting worldwide interest, and coupled with colour displays and subsidised pricing, the overall mobile phone market is seeing significant growth in 2003,” he adds.

The market demand for converted handheld devices, or smartphones has also continued to accelerate. In the second quarter of 2003, the worldwide converged handheld device market grew 330.7% year-over-year and 12.0% sequentially to 1.97 million units.

The converged device market now makes up 1.7% of the total mobile phone market, compared with only 0.5% in the same quarter one year ago.

During Q2, vendors shipped a number of new devices as they attempted to determine, which collaboration of functionality, form factor, and price will attract the mass market.

“Integrating wireless voice and data capabilities, the converged device market continues to draw broader consumer and enterprise interest, expanding its core customer base,” explains Sealfon. “With form factors and operating systems improving, this market is poised for steady growth,” he adds.

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