STRATEGY ANALYTICS: Emerging Markets Drive 188 Million Mobile Phone Shipments Worldwide in Q2 2005; Mega-Vendors Nokia and Motorola Take Impressive 50 Percent Share

Business Wire, July 28, 2005

BOSTON -- According to the latest research from Strategy Analytics, global mobile phone shipments grew a striking 18 percent year-over-year, to 188 million units during Q2 2005 (April - June). Mega-vendors Nokia and Motorola outperformed in emerging markets, to grab an impressive, combined 50 percent share of total sales.

Chris Ambrosio, Director of Strategy Analytics' Wireless Device Strategies service, noted, "Strong growth in emerging mobile phone markets, such as South America and Africa, is driving demand for increasing numbers of entry-level devices, precisely the mass-market segments where Nokia and Motorola are among the strongest."

"The worldwide handset market is once again becoming concentrated in the hands of just a few major brands," said Neil Mawston, Associate Director of the Wireless Device Strategies (WDS) service at Strategy Analytics. "For example, Nokia and Motorola accounted for exactly half the global market in Q2 2005, leaving more than 60 other brands to fight for the remaining 50 percent."

Other findings from this Strategy Analytics Q2 2005 Global Handset Market Share Update include:

--Samsung posted a below-average 7 percent annual growth rate, and desperately needs both entry-tier products and mid-tier style-refreshment, in order to respond to the intense competitive challenge being thrown down by Nokia and Motorola;

--Following 361 million handsets sold globally in the first half of 2005, Strategy Analytics forecasts 775 million units for the full-year 2005.

Global Mobile Phone Shipments: Top 5 in Q2 2005

Global Shipments ( M )                                          Q2 '05
------------------------------------------------------------ ---------
Nokia                                                            60.8
Motorola                                                         33.9
Samsung                                                          24.4
LG                                                               12.1
Sony Ericsson                                                    11.8
Others                                                           45.4
------------------------------------------------------------ ---------
Total                                                           188.4
============================================================ =========

Global Share                                                    Q2 '05
------------------------------------------------------------ ---------
Nokia                                                            32.3%
Motorola                                                         18.0%
Samsung                                                          13.0%
LG                                                                6.4%
Sony Ericsson                                                     6.3%
Others                                                           24.1%
------------------------------------------------------------ ---------
Total                                                           100.0%
============================================================ =========

Total Growth YoY                                                 18.3%

About Strategy Analytics

Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA, and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com.