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Nokia Achieves 40% Global Handset Market Share

Nokia Reaches 40 Percent Global Share as Mobile Phone Shipments Hit 1.12 Billion Units in 2007

According to the latest research from Strategy Analytics, global mobile phone shipments grew a modest 12 percent year-over-year, to reach 1.12 billion units in 2007. Nokia had a strong fourth quarter and reached 40% share for the first time ever.

Bonny Joy, Analyst at Strategy Analytics said, “Global cellphone shipments rose to 1.12 billion units in 2007, up 12% from 1.00 billion in 2006. We expect the economic environment to be tougher this year and forecast slower growth of 10%, for 1.24 billion units worldwide in 2008.”

Neil Mawston, Director at Strategy Analytics, added, “During the fourth quarter of 2007, 332 million mobile phones were shipped globally. Nokia was the star performer, registering a record 40% share. Despite fierce competition from ambitious rivals such as Samsung and Apple, Nokia still managed to gain ground last year. A famous brand, attractive handset lineup, strong technology portfolio and the industry’s best logistics have enabled Nokia to achieve this impressive milestone.”

Other findings from Strategy Analytics’ Q4 2007 Global Handset Market Share Update report include:

  • Motorola registered 12.3% global share in Q4 2007, down sharply from 22.4% in Q4 2006. A failure to replace the popular Razr model has been the main cause of decline;
  • Sony Ericsson continued to slow down. Its annual growth rate has plunged in recent quarters. Improved handset portfolios from Samsung, LG and Nokia are starting to have a competitive impact on Sony Ericsson.
  • Apple shipped 2.3 million iPhone units worldwide, for a healthy 0.6 percent share in Q4 2007. We predict Apple to be among the world’s top ten vendors by the end of 2008

Exhibit 1: Global Mobile Handset Shipments and Market Share — Top 5 Vendors

Global Handset Shipments ( Millions of Units )

Q4 ’06 2006 Q4 ’07 2007
Nokia 105.5 347.5 133.5 437.1
Samsung 32.9 113.7 46.4 161.2
Motorola 65.7 217.4 40.9 159.0
Sony Ericsson 26.0 74.8 30.8 103.4
LG Electronics 17.0 64.4 23.7 80.5
Others 45.9 184.1 56.7 184.3
Total 293.0 1001.9 332.0 1125.5

Global Marketshare %

Q4 ’06 2006 Q4 ’07 2007
Nokia 36.0% 34.7% 40.2% 38.8%
Samsung 11.2% 11.3% 14.0% 14.3%
Motorola 22.4% 21.7% 12.3% 14.1%
Sony Ericsson 8.9% 7.5% 9.3% 9.2%
LG Electronics 5.8% 6.4% 7.1% 7.2%
Others 15.7% 18.4% 17.1% 16.4%
Total 100.0% 100.0% 100.0% 100.0%
Total Growth Year-over-Year 19.3% 22.6% 13.3% 12.3%

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 http://www.strategyanalytics.com.

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