Samsung Electronics sold almost 200 million mobile handsets in 2008, a 24% improvement on the previous year. Thus, the company has become the only handset vendor, so far, to have reported y-o-y improvements in handset shipment volumes in each consecutive quarter of 2008. Indeed, this achievement is vastly superior to the overall 5-6% growth recorded by the industry as a whole.
Samsung claims that the market is being driven by strong demand for touch screen and ‘smart’ devices in developed markets and mid-end camera phones in emerging markets. The company believes that high-end devices accounted for 13% of the market in 2008, up from 11% in 2007. These numbers closely match Juniper Research‘s predictions regarding the growth of the ‘smartphone’ market, which form part of a new report to be published next week.
Smartphones also form the bedrock of the 3G sector, and Samsung believes that 3G devices accounted for 19% of the market in 2008, up from 15% in 2007. The company believes that, in 2009, 3G devices will account for 29% of the global handset market, despite an expected 10% fall in total shipment volumes. The company believes that it will ship more handsets in 2009 than it did in 2008; it will do so by strengthening its portfolio of high-end devices and enhancing its low-end line-up, the latter products appealing more to budget-conscious consumers and users in emerging markets.
Like other vendors, Samsung is looking to virgin 3G markets such as China and India to bolster its growth in 2009: in India alone, it aims to double market share from 8% to 16% within 12 months.
With a market share of approximately 40%, Nokia is in no immediate danger of relinquishing its position as the premier provider of mobile devices. However, with substantial falls in quarterly shipments to key markets in the Middle East and Africa, China, and the rest of Asia, Nokia is coming under increasing pressure to accept reduced margins from its handsets businesses as a result of falling retail and wholesale prices for its products in the face of cheaper competitive products from the likes of Samsung and other emerging Asian tigers such as ZTE and Huawei Technologies.
In order to survive, Nokia is evolving from a pure handset vendor to a multi-media mobile platform operator, with a clear focus on providing mobile users with personalised Internet-centric communications. It remains to be seen whether fast movers such as Samsung can replicate that success, too.
Tags: 3G, Africa, Asia, camera phones, China, emerging markets, forecasts, high-end devices, Huawei Technologies, India, low-end devices, market share, Middle East, mobile, mobile devices, mobile handset, mobile internet, mobile phone, Nokia, sales, Samsung, Samsung Group, Samsung Telecommunications, shipments, smart devices, smartphone, South Korea, touch screen, ZTE
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