Mobile phone market grew 15.8 percent, study says

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Jan. 25, 2008

An ABI Research study claims that 2007 mobile phone sales closed strong, with yearly shipments up 15.8 percent to 1.15 billion. Fourth quarter 2007 worldwide shipments totaled 342 million, meeting ABI's earlier projections, but Motorola continued to lose market share.

(Click for larger view of Motorola's Linux-based ROKR E8)

Major handset makers such as Nokia, Sony Ericcson, and Samsung are doing well, says ABI. However, Nokia continues to struggle in North America market, and to a lesser extent in South America, failing to meet the requirements for customization and exclusive sales periods in American markets. Nevertheless, worldwide sales have continued to buoy Nokia.

By comparison, Motorola continues to lose major market share. Motorola itself reported that its share shrank 38 percent year-on-year from 23.3 percent at year-end 2006 to 12.4 percent at the end of 2007. While Motorola does not expect that 1Q 2008 will show much improvement, it is more bullish on its prospects for the rest of the year. ABI notes that Motorola has beefed up its portfolio except for in the ultra low cost market, and suggests that the new award-winning, Linux-based ROKR E8 (pictured top of page) may help it turn the tide.

Currently available Motorola Linux phones
(l-r) Rokr E8, Razr2 V8, and Rokr Z6 (formerly MotoRizr Z6)
(Click any for details)

Yet with the threat of a global recession looming, all the vendors may see reduced growth, says ABI. Stated research director Stuart Carlaw. "Taking into account the growing sense of global economic uncertainty, ABI Research has reduced its 2008 handset market growth forecast from 13.5 percent to 12 percent."

Availability

Pricing and other information about ABI Research's study, "Mobile Devices Market Sizing and Share," is available here. Meanwhile, LinuxDevices has recently updated its showcase of Linux-based mobile phones, which is always available on the right side of the page.

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