Metrics 2.0: Worldwide mobile phone sales totaled 229 million units 2Q'06, growing at 18.3%


	Worldwide mobile phone sales totaled 229 million units in the second quarter of 2006, a 18.3% increase from the same period last year, according to Gartner Inc. This compared to a 23.8% increase in the first quarter. Gartner said that its mobile phone sales forecast is still on track to reach 960 million units in 2006, with 238 million units in the third quarter of 2006. Nokia and Motorola both grew their market share and accounted for more than half of the worldwide mobile phone sales in the second quarter of 2006. Nokia maintained its No. 1 position with a 33.6% market share, gaining 2 percentage points compared to the same period last year.
Motorola is the big winner this quarter as the company achieved a market share of 21.9%, growing its market share by 4.2 percent year on year, the highest growth this quarter. Motorola maintained its lead in North America and Latin America and its No.2 position in other markets. Samsung retained its No. 3 position but lost market share compared to the top two players. Sales reached 25.5 million units in the second quarter, approximately half of Motorola’s total sales this quarter. Sony Ericsson regained the No.4 position with sales reaching 15.3 million units. LG lost 0.4 percent market share year on year and slipped into fifth place, despite the success of the KG800 Chocolate phone.

Table 1
Worldwide Mobile Terminal Sales to End-Users in 2Q06 (Thousands of Units)

Company	2Q06 Sales	2Q06 Market Share (%)	2Q05 Sales	2Q05 Market Share (%)
Nokia	77,065.2	33.6	61,209.8	31.6
Motorola	50,170.7	21.9	34,258.4	17.7
Samsung	25,526.6	11.1	25,027.0	12.9
Sony Ericsson	15,281.3	6.7	11,903.1	6.1
LG	14,400.6	6.3	13,073.4	6.7
BenQ Mobile*	7,396.0	3.2	9,327.4	4.8
Others	39,276.5	17.2	38,894.8	20.2
Total	229,116.9	100.0	193,693.9	100.0

Note: This table includes sales of integrated digital enhanced network (iDEN) terminals. It excludes shipments from original design manufacturers to original equipment manufacturers.
* Shipments of BenQ and Siemens combined.
Source: Gartner Dataquest (August 2006)

Regional Analysis

In Western Europe, sales in the second quarter of 2006 reached 41.1 million units, a 9 percent increase from the same period in 2005.
In Eastern Europe, the Middle East and Africa, sales of mobile phones to end users grew 20 percent over the same quarter in 2005 to reach 42.5 million units.
In North America, sales of mobile phones to end users reached 38.6 million units, down 3.5 percent compared to the first quarter of 2006.
In Latin America, sales reached 28.2 million units in the second quarter of 2006, a 7 percent increase from the same period last year.
In Asia Pacific, growth was driven by emerging markets such as India, China, Vietnam, Pakistan and Bangladesh. Total handsets sales reached 67.9 million units in the second quarter of this year, up 5.4 percent from the previous quarter.
In Japan, mobile terminals sales totaled nearly 11 million units in the second quarter of 2006, a 9 percent increase from the same period last year.

More information is available in the Gartner report “Market Share: Mobile Terminals, Worldwide, 2Q06”. The report is available on Gartner’s Website at www.gartner.com.

Business & Market Intelligence

Worldwide mobile phone sales totaled 229 million units 2Q'06, growing at 18.3%