FRAMINGHAM, MA — The fourth quarter of 2005 saw new records for mobile phone shipments, largely driven by vendors stocking the channels in time for the holiday season. According to IDC, worldwide mobile phone shipments rose 19.3% year over year and increased sequentially 16.8%, good for reach a quarterly record of 245.2 million units.

An analyst with the firm said the quarter portends solid growth into 2006.  Worldwide converged mobile device shipments rose 100.3% year-over-year and 20% sequentially during the quarter to 16.8 million units. A combination of marketing efforts, large volumes of new devices introduced earlier in the year, well-stocked channels, and enticing plans from carriers factored heavily into shipment activity during the quarter.

For the year, worldwide mobile phone shipments totaled 825.5 million units, a 16.7% increase over 2004. Shipments of converged mobile devices reached 55.6 million units for 2005, an increase of 165.3%.

“Historically, the fourth quarter produces the highest mobile phone shipments of the year due to the numerous promotions driven by carriers to clear the channels during the holiday rush," said Ryan Reith, research analyst, IDC. "Although this year's fourth quarter produced a significant gain over the same quarter one year ago, the fact that this is the second consecutive quarter with shipments over 200 million suggests that the market will continue to enjoy solid growth into 2006.”

While the majority of sales are historically driven by low and mid-range phones, the fourth quarter saw the introduction of high-end phones across various networks and regions. “The worldwide mobile phone market has become populated with numerous devices that are focused on utilizing the high speed networks springing up around the world," said Reith. "We saw phones that offered on-demand music services, mobile TV, and downloadable video clips from all of the major vendors."

Latin America shipments are expected to reach record levels of 105.3 million units, up 33.7% from 2004 shipments.

Supplier Notes

• Nokia consolidated its position as the leading global mobile phone vendor with record shipments of 83.7 million units, a sequential increase of 25.7% and year-on-year growth of 26.6%.
• With a record number of shipments in the fourth quarter, Motorola solidified its position as number two in worldwide mobile phone shipments, showing a 15.5% increase over 3Q05 and a 40.6% increase over a year ago.
• With shipments increasing only 1.5% sequentially but 28.9% year-over-year, Samsung maintained third place in shipments.
• LG Electronics reported 16.2 million mobile phones shipped in the fourth quarter, gaining a slight edge over Sony Ericsson. This was up 4.3% sequentially and 16.5% year-over-year. LG announced the release of its Black Label line focusing on the personal expression of the user. These, along with its lineup of 3G devices, boosted shipment levels for the company.
• Sony Ericsson capped off a record year with 16.1 million units shipped in the fourth quarter, marking a 27.8% year-over-year increase and a 15.8% gain over the previous quarter. The company continued to see success with its lineup of Walkman branded phones, and its offerings toward the middle and entry-level tiers likewise improved.

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