Nokia number one in 3G phone market

August 23, 2005

According to the latest research from Strategy Analytics, a total of 9 million WCDMA (3G) phones were shipped worldwide during the second quarter of 2005 (April to June). Nokia topped the list of vendor-rankings for the first time, with a 17 per cent global share.

Chris Ambrosio, Director of the Strategy Analytics Wireless Device Strategies service, noted, "At 17 percent, Nokia's 3G market share is almost half its overall global total of 33 percent. WCDMA (3G) technology, which accounted for just 5 per cent of total handset sales during Q2 2005, remains a market in the early stages of development, but it is worrying for a cluster of aspiring Asian vendors that Nokia has already become best in class. Early market-leaders NEC and LG have been overtaken by Nokia and they have significant work to do to match up in the next battle for WCDMA phones priced below US$200 wholesale, which will present significant mass-market opportunities in 2006 to 2010."

"Strategy Analytics' Advanced Buyer Panel recently rated the Nokia 6680 as the best-in-class 3G phone in Western Europe." added Neil Mawston, Associate Director, Wireless Device Strategies. "Step by step, Nokia is regaining ground in high-end device segments that it has lost to Motorola, Samsung, LG and others over the last couple of years."

Other findings from Strategy Analytics' Global Handset Market Share Update for Q2 2005 include:

-- Motorola continues to surge in 2.5G (GPRS), due to popular ultra-slim models, such as the V3 Razr. However, it is on the back foot in 3G (WCDMA) and it urgently needs design improvements in this segment;

-- Audiovox of the US reached its highest level in CDMA handsets for two years, due to aggressive promotion from its ambitious new owner, UTStarcom.