Global handset sales rise 11% while new player gains a footing in China

18 Aug 2003

Mobile handset manufacturer Nokia has managed to reach the number one spot in the global market in the second quarter, with its market share rising by two percentage points to 37%. Nokia, which managed to ward off competition from its biggest rivals – Motorola, which claimed a market share of 14.2% and Samsung, which had 10.8% – made significant gains in both the GSM and CDMA sectors, following the release of a range of new CDMA phones during the quarter. Siemens stood in fourth place, with its market share remaining static at 7.3% while the fifth largest player, Sony Ericsson, saw a turnaround with its share rising to 6% from 5% in the three months, thanks to the launch of its new camera and gaming handsets.

Meanwhile in China, a new player Ningbo Bird has managed to establish itself as a significant mobile phone manufacturer. The former beeper maker has been looking to enter the market since 1999, and according to government statistics, has managed to sell more handsets during the second quarter than any of its rivals, winning 15% of the market. The company has put its success down to its sales strategy, which differs from that of the larger players Nokia and Motorola; Ningbo Bird said it pushes its phones to shops which then introduce the models to customers. It also said that its phones take account more for local taste than some other models, with flip top models multiple screens and flashing colour screens.