Home / Mobile unit sales start to slow

Mobile unit sales start to slow

After months of high growth, worldwide mobile phone shipments have begun to slow down, according to the latest quarterly mobile phone tracker from IDC.

After months of high growth, worldwide mobile phone shipments have begun to slow down, according to the latest quarterly mobile phone tracker from IDC.

Mobile phone shipments in the first quarter of 2007 were 13.8% lower than those of the previous quarter, despite growing 10% year-on-year to 256.4 million units, the research firm said. The year-on-year growth rate has also declined: in 2006 it topped 20% each quarter, according to IDC.

The shift marks the beginning of a slowdown in the mobile phone market as fewer new subscribers buy cellular handsets, IDC said.

Overall growth will continue, the firm added, but at a slower rate as mobile phone shipments increasingly move from being new handsets for first-time users to replacement handsets for seasoned users.

Nokia continued to top the vendor rankings, shipping 91.1 million units during the quarter and holding a 35.5% share of the market.

Number two player Motorola, however, experienced a decline in Q107, shipping 45.4 million units versus 46.1 million in the first quarter of 2006.

"While Motorola announced plans to revamp growth, the sudden shift in momentum demonstrates how competitive this industry is," said Ryan Reith, research analyst for IDC.

Third place Samsung, meanwhile, shipped nearly 6,000 more phones in Q107 than it did in Q106.

Follow us to get the most comprehensive technology news in UAE delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.