Strategy Analytics Upgrades Fiscal Year Mobile Phone Shipments Forecast

LONDON -(Dow Jones)- Research company Strategy Analytics Thursday raised its forecast for global mobile phone shipments in 2005 after rapid growth in the second quarter.

Strategy Analytics said 188 million handsets were shipped during the second quarter, 18% higher than the previous year and exceeding the 10% year-on-year growth in the first quarter.

It subsequently raised its global handset forecast for 2005 to 775 million units. Global mobile phone shipments totaled 680.5 million in 2004.

Demand grew in all regions, with Nokia Corp. (NOK) and Motorola Inc. (MOT) outperforming in rapid-growth emerging markets such as South America, Africa and Eastern Europe. The two largest global handset makers had a combined market share of 50% at the end of the second quarter.

Korea's Samsung Corp. (000830.SE) had a lackluster quarter and desperately needs new entry-level and mid-tier products, Strategy Analytics said.

While Sony Ericsson experienced healthy demand for high-end products, which helped stabilize market share, LG Electronics Inc. (066570.SE) registered its weakest performance since 2001. Siemens AG (SI), which has since disposed of its mobile phone operations, came under continued pressure from the largest vendors.

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

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

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Posted to the site on 28th July 2005