Emerging markets drive mobile phone sales to new level

Smartphone sales grew 96 percent from the third quarter last year, and smartphones accounted for 19.3 percent of overall mobile phone sales in the third quarter of 2010.
By Patrick Burnson, Executive Editor
November 15, 2010 - SCMR Editorial

Worldwide mobile phone sales to end users totaled 417 million units in the third quarter of 2010, a 35 percent increase from the third quarter of 2009, according to Gartner, Inc.

Smartphone sales grew 96 percent from the third quarter last year, and smartphones accounted for 19.3 percent of overall mobile phone sales in the third quarter of 2010.

“This is the third consecutive double-digit increase in sales year-on-year, indicating that consumer demand is healthy,” said Carolina Milanesi, research vice president at Gartner. “This quarter saw Apple and Android drive record smartphone sales. Apple’s share of the smartphone market surpassed Research In Motion (RIM) in North America to put it second behind Android while Android volumes also grew rapidly making it the No. 2 operating system worldwide.”

Although the top three worldwide mobile device manufacturers Nokia, Samsung and LG remained the same – albeit with reduced market share - the third quarter saw Apple rise into the top five manufacturers, surpassing RIM for fourth place.

In addition to strong growth of smartphone sales in mature markets, increasing sales of white-box products in some emerging regions drove sales of mobile phones upward once again.

“In the third quarter, white-box manufacturers continued to expand their reach outside of China into markets such as India, Russia, Africa and Latin America,” said Milanesi. “We firmly believe this phenomenon will not be short-lived as we still see a continued need for non-3G devices. Although we have seen acceleration in sales this quarter, we expect an even bigger volume in the fourth quarter of 2010.”

The rise of white-box manufacturers from Asia has also helped as a proportion of overall sales, increasing its market share to 33.0 percent in the third quarter of 2010.

“This is having a profound effect on the top five mobile handset manufacturers’ combined share that dropped from 83 percent in the third quarter of 2009 to 66.9 percent in the third quarter of 2010,” said Milanesi.

Jock O’Connell, Beacon Economics’ International Trade Adviser in Sacramento, told SCMR that U.S. multinationals are benefitting, although most of the “guts” for phones are manufactured in Asia.

“One interesting exception on the list is Infineon, which Intel just bought,” he noted.



About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

A couple of years ago, the rush to alternatively fueled vehicles was on. Diesel prices had surged past $4, the American Trucking Associations hosted an overflow crowd at its alternative fuels “summit” for trucking executives and energy tycoon T. Boone Pickens offered what might have been the ultimate assessment of where fuel prices were headed.

As a sector with myriad moving parts, coupled with obstacles like increased risks, cost pressures, among others, the healthcare supply chain is replete with uncertainties. But there are ways for the sector to counter these challenges, too, according to the seventh annual UPS “Pain in the (Supply) Chain healthcare surve

The study examines the trajectory of offshoring cost arbitrage to low-cost developing countries, the rise of new locations, and the fact that there’s ample room for growth.

In a rare show of solidarity, various trucking interests are asking the Department of Transportation’s Federal Motor Carrier Safety Administration to remove online safety ratings of individual motor carriers until flaws in the CSA methodology are fixed.

While it feels somewhat hard to fathom, the stage is set for the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio, Texas.

Article Topics

News · Technology · Supply Chain · Logistics · Trade · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.