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24th November - According to IDC's Western European Quarterly
Mobile Phone Market Tracker, the Western European mobile phone
market (consisting of traditional mobile phones and converged
devices) maintained healthy double digit growth in 3Q05 as
shipments increased by 16% year on year and 5% sequentially
to reach 39.5 million units compared to 34 million in the
third quarter of 2004.
Despite a number of leading operators warning of a slowdown
in subscriber growth as mobile phone penetration reaches saturation,
the heavy promotion of 3G services, the introduction of new
multimedia handsets as vendors extend their portfolios, further
penetration of Series 60 smart phones into the consumer space,
and the proliferation of low-end handsets with highly competitive
ASPs, all served to accelerate market demand during the quarter.
Furthermore, volume shipments of new devices ensured comprehensive
early visibility and availability of devices for 4Q to meet
the seasonal increase in demand and spending.
"Although 3Q lacked the impetus commonly provided by
extensive handset launches, the widespread availability of
popular feature phones such as the Motorola RAZR, Nokia 6230i,
and Sony Ericsson K750i and W800 launched earlier in the year
ensured substantial adoption largely through post pay contract
renewals and handset upgrades with visibility assisted by
extensive promotions," said Andrew Brown, program manager,
European Mobile Devices at IDC.
A year on from 3G service launches from tier 1 operators
such as Vodafone and Orange, IDC notes vendors' growing commitment
to WCDMA within handset R&D in response to operator demands
for handsets that meet varying segment requirements and with
the capability to deliver 3G services with a lower terminal
cost to a larger proportion of the existing 2.5G subscriber
base.
In 3Q05, WCDMA handsets represented 12% of the total market
compared to 7% in 3Q04, in line with IDC's forecast of WCDMA
handset shipments in 2005 representing 13% of the total market.
IDC points to the traction that Series 60 smart phones such
as the Nokia 6630 and 6680 positioned as advanced multimedia
solutions have gained in operator 3G portfolios and their
proportion of total WCDMA device shipments in 2005 as a key
accelerator of converged device growth. In 3Q05, the market
continued to exhibit comprehensive growth as converged device
shipments increased by 105% year on year and 3% sequentially
to reach 2.8 million units.
Although the enterprise segment also witnessed an upsurge
in growth during the quarter buoyed by RIM BlackBerry and
HP Mobile Messenger shipments, overall growth remained dominated
by the penetration of the Series 60 platform into the consumer
space. In 3Q05, converged devices (including smart phones
and telephony-enabled PDAs) represented 7% of the total mobile
phone market in Western Europe, increasing from 4% in the
corresponding quarter of 2004, predominantly due to the success
Nokia has enjoyed in executing its strategy of positioning
Series 60 as a highly capable multimedia platform. In forecasting
converged devices' proportion of the total mobile phone market
to increase to double figures in 2006, IDC points to technological
advances that will drive further penetration of the mass market.
"With efficiencies in the design architecture, integration,
and component requirements of advanced operating systems enabling
substantial BOM cost reductions, the viability of advanced
operating systems for mass market deployment is growing substantially,
illustrated by Symbian's announcement of the Real Time Compatibility
Layer (RTCL) enabling proprietary signaling stacks to be hosted
by Symbian OS," said Geoff Blaber, research analyst,
European Mobile Devices at IDC.
3Q05 Vendor Performance
Nokia - The Finnish vendor shipped a total of 14.2 million
handsets in 3Q05, representing year-on-year growth of 20%
and consolidating a market share of 36%. The vendor's substantial
R&D capability continues to ensure that the Nokia product
portfolio adapts to a market that is becoming increasingly
segmented; the 6230i remaining a key contributor to shipments
in 3Q05, accompanied by the 6630 and 6680 in the smart phone
segment.
Samsung - Samsung witnessed substantial year-on-year growth
in 3Q05, with shipments increasing by 100% to 6.2 million
units and market share rising to 16%. The vendor's mid-high-end
handset lineup continued to expand in the third quarter as
the portfolio steadily moves towards a wider range of higher
specification feature phones such as the D600 and, increasingly,
converged devices with the D720 and D730.
Motorola - A year-on-year increase in shipments of 71% served
to drive Motorola's market share to 15% in 3Q05 from 10% in
the corresponding quarter of 2004. The high margin RAZR and
the introduction of special edition versions continued to
drive overall shipments, although a slowdown in A1000 shipments
ahead of the A1010 launch and a disappointing performance
and seemingly premature end for the MPx220 caused negative
year-on-year growth for its converged devices.
Sony Ericsson - In volume terms, the Swedish vendor suffered
from the strong market performance witnessed by Samsung and
Motorola, with growth remaining largely flat year on year
at 5% and market share declining slightly from 13% to 12%
in 3Q05. However, growth in revenue is indicative of Sony
Ericsson's high-end portfolio with a focus on imaging, music,
and 3G, with the K750i and W800 witnessing substantial traction
in 3Q05. Similarly, despite reaching the end of its life cycle
ahead of the P990 launch in 1Q06, the P910i shipped almost
140,000 units.
Siemens - The effects of the takeover of Siemens' mobile
phone business by BenQ continued to influence market performance
in 3Q05 as growth declined by 44% year on year for the third
successive quarter, as shipments reached just 2.9 million
compared to 5.2 in 3Q04 and market share declined to 7%.
IDC's European Mobile Phone Market Tracker provides quantitative
and qualitative analysis of the European mobile phone market
on a quarterly basis. Analysis includes historic quarterly
unit shipments from 1Q00 and subsequent quarters by vendor,
form factor, device type, air interface, and technology as
well as short-range forecasts.
About IDC
IDC is the premier global market intelligence and advisory
firm in the
information technology and telecommunications industries.
We analyze and predict technology trends so that our clients
can make strategic, fact-based decisions on IT purchases and
business strategy. Over 700 IDC analysts in 50 countries provide
local expertise and insights on technology markets. Business
executives and IT managers have relied for 40 years on our
advice to make decisions that contribute to the success of
their organizations.
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