96.7 Million Q2 Wireless Handset Shipments

The latest Strategy Analytics wireless forecast reports that there were 96.7 million handset shipments in Q2, maintaining their estimate of 417 million shipments for the full year 2002. Presented in "Global Handset Market: Q2 2002 Handset Market Share Update," these findings indicate a quarterly stabilization in replacement rates that is expected to carry into Q3 and the holiday season. Samsung's surging GSM performance will challenge Siemens and Motorola for second GSM market share position. LG posts strong performance in the US CDMA market and grows its GSM presence.

Graph above t illustrates :

96.7M handsets were shipped (sell-in) in 2Q 2002

100.9M handsets were sold (sell-through) to end-users in 2Q 2002

Nokia increased its market share from 35% in 1Q 2002 to 37% in 2Q 2002

Nokia, Motorola and LG were the star performers in 2Q 2002

Chris Ambrosio, Director, Global Wireless Practice at Strategy Analytics, notes, "Replacement rates have steadily fallen over the past 18 months, but second quarter shipments indicate that they have stabilized, especially in Western Europe. We are optimistic that this trend will continue into the third quarter, which would be a positive way to begin the crucial holiday season."

David Kerr, Vice President, Strategy Analytics Global Wireless Practice, adds, "In terms of vendor performance, Samsung's surging GSM shipments will rival Siemens and Motorola by year end. LG is a horse to watch, since they shipped as many GSM handsets in the second quarter as they did in all of 2001."

Other findings included in this report are that Siemens maintains handset profitability on shipments of 8.2 million units, up 41% from Q2 2001; Motorola has leveraged its popular v60 design to build shipments in CDMA and GSM handsets; Sony Ericsson ships 5.0 million handsets, but still lacks entry- level products to carry volume growth; and ASPs decline slightly and are expected to continue a gradual decline through the end of 2002.

This report, "Global Handset Market: 2Q 2002 Handset Market Share Update," is published by the Wireless Device Strategies (WDS) service of Strategy Analytics. The report provides: Q2 Global Handset Shipments (sell-in); Q2 performance metrics for the top five global handset vendors; and Q1 Global Handset Shipments (sell-in) for the top handset vendors.