800 Million Mobile Phones to be Shipped Worldwide in 2005

October 25, 2005

According to the latest research from Strategy Analytics, global mobile phone shipments grew 25 percent year-over-year, to reach a record 209 million units during Q3 2005. In contrast, worldwide industry ASPs (Average Selling Price) fell 11 percent annually during the quarter. Motorola reached its highest share position since 1999, while Sony Ericsson achieved its best performance since 2001.

Neil Mawston, Associate Director of the Wireless Device Strategies (WDS) service at Strategy Analytics, said, "A record 209 million mobile phones were shipped worldwide in Q3 2005. Following 566 million units during the first 9 months of the year, we expect the full-year total to surpass the 800 million level for the first time ever. Q4 will be yet another record quarter and the cell phone market is on track for $120 billion in total annual wholesale revenues by the end of this year."

Chris Ambrosio, Director of the Strategy Analytics Wireless Device Strategies (WDS) service, added, "In stark contrast to the 25 per cent upward growth in shipment volumes, global wholesale handset ASPs declined 11 percent year-over-year, to reach $146 during the third quarter of 2005. These intense pricing and profit pressures within the mobile phone industry are going to cause consolidation-pressure to reach critical mass among smaller vendors, such as Ningbo Bird and Panasonic, who will struggle to maintain increasingly expensive development efforts in either low-cost phones or feature-rich 3G handsets through the next several years."

Other findings from Strategy Analytics' Q3 2005 Global Handset Market Share Update include:

- Motorola achieved a 19 percent global market share during Q3 2005, representing its highest position since 1999;

- Sony Ericsson rose to almost 7 percent market share during Q3 2005, achieving its highest rating since their merger was announced in 2001.