Global Mobile Handset Market +25% In 3Q - Strategy Analytics

LONDON -(Dow Jones)- The global mobile handset market grew 25% in the third quarter, with Korean manufacturers Samsung Corp. (000830.SE) and LG Electronics Inc. (066570.SE) both gaining ground, according to the latest data from research company Strategy Analytics.

Strategy Analytics said that 168 million handsets were shipped during the third quarter with strong sales in all regions. That represents a 25% rise on the 134.5 million handsets sold in the third quarter of 2003.

The research company expects 670 million handsets to be sold in the full year. It said 480 million handsets have been shipped in the first three quarters of the year.

It said growth benefitted from a surging handset replacement cycle in developed markets and vigorous growth in developing regions, notably Central and South America. There were signs of marginal inventory build-up in Asia.

The big gainers included Samsung, which grew shipments 51% on year, and closed the market share gap on second-placed Motorola Inc. (MOT) to under 1%.

LG benefitted from strong growth in North America and Europe and overtook Sony Ericsson, a joint venture between Sony Corp. (SNE) and LM Ericsson Telephone Co. (ERICY), as the fifth largest handset maker by shipments. LG's overall handset shipments grew 55% in the third quarter.

Nokia Corp. (NOK) rebounded above the 30% market share level to 33.8% as price cuts boosted volumes in Western Europe and Latin America.

Motorola's growth slipped to 15% in the quarter from 53% growth in the second quarter as it concentrated on bolstering selling prices and profits at the expense of margins.

Strategy Analytics expects growth to slow to 8%, or 726 million units, in 2005 from 30% in 2004 as the upgrade cycle begins to decelerate.

Company Web site: Http://www.strategyanalytics.com

-By Nic Fildes, Dow Jones Newswires; 44-20-7842-9264; nicolas.fildes@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 27th October 2004