2003 proved good for sales worldwide: Gartner reports increase of 21% in sales of mobile phones.
Strong replacement demand in mature markets coupled with higher than expected growth in emerging markets combined to deliver a record number of units sold in the mobile phone industry in 2003. Worldwide mobile phone sales totaled 520 million units, a 20.5 percent increase from 2002 sales, according to Gartner.
"2003 sales surpassed industry expectations with the fourth quarter presenting a challenge to many vendors as they struggled to meet supply," said Ben Wood, principal analyst at Gartner. "This unprecedented demand is set to continue in 2004 with the first quarter already looking strong. We've increased our market estimate for 2004 to 580 million units."
Nokia continued to lead the worldwide mobile phone industry, and it became the market leader in North America. However, on a worldwide basis, it suffered a decline in market share. Motorola's market share declined in the fourth quarter of 2003. However, rising sales this quarter of new products could result in a resurgence in Motorola's market share in 2004. Despite success late in the year, Motorola lost the leadership position in the home market in North America, even with strong sales of integrated digital enhanced network (iDEN) products.
Samsung consistently held a global market share of approximately 10 percent during 2003. Its strategy of focusing on higher tier products rather than the intensely competitive, lower-tier, low-margin segment has been reflected in its high average selling prices and double-digit margins.
Siemens recorded strong growth in late 2003 despite focusing on low-margin products, partially as a result of popularity in Eastern European markets and Russia. LG was the No. 5 vendor in worldwide mobile phone sales in 2003, and its success in the Indian market was instrumental in its strong growth. The company also had robust sales in the fourth quarter of 2003, some of which was attributed to strength in North America.
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