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News|Perspectives|Company Profiles|Industry Analysis |Stats|Research Center|Archives|Conferences|Graduate StudiesMobile phone market shrinks in Q4 but better than previous quarters - Regional
Published: Friday, January 29, 2010 14:53 (GMT-0400)
By Patrick Nixon / Business News Americas
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Latin America's mobile phone market shrunk in the fourth quarter, though the performance marked an improvement from the double-digit declines posted in previous quarters, consultancy IDC said in a statement.
"Stronger Brazilian currency pushed prices for mobile phone imports lower, spurring greater demand. In Argentina, channel partners purchased additional products ahead of a new tax rate that came into effect in December," IDC said.
"Finally, the popularity of pre-paid service options across the regions included more converged mobile devices, stoking greater demand from vendors."
According to IDC's worldwide mobile phone tracker, globally the mobile phone market grew 11.3% in 4Q09, ending five quarters of entrenchment.
In 2009, vendors shipped a total of 1.13bn units, down 5.2% from the 1.19bn units shipped in 2008.
According to IDC senior analyst Kevin Restivo, the Asia Pacific region and the US were primarily responsible for stimulating the growth in Q4.
One area of the market that has consistently shown growth all year is the converged mobile device market, which grew some 30% and will continue to grow in 2010 as selection increases and prices come down, according to IDC senior research analyst Ramon Llamas.
"Consumer tastes for mobile phones have increasingly shifted from simple voice telephony to greater data usage, and both handset vendors and carriers have been eager to meet demand despite ongoing economic challenges," he said.
Nokia (NYSE: NOK) saw its global market share slip in 2009 to 38.4% from 39.4%, Samsung's share rose to 20.1% from 16.5% and LG's rose to 10.5% from 8.5%.
The losers were Sony Ericsson whose market share fell to 5.1% from 8.1% and Motorola (NYSE: MOT) whose share fell to 4.9% from 8.4%.
Restivo told BNamericas that Samsung and LG have been successful in introducing more multimedia functions, which are normally associated with more high-end smartphones, to lower cost phones.
"What carriers like about them is the data attach rate, and data is the next frontier. Voice Arpu is on the way down and carriers and manufacturers alike are seeking to sell more data plans and more data oriented phones... to a consumer without the cost of a smartphone," Restivo said.
"I think that Samsung and LG are doing a good job of selling a lot of the smartphone functions in the traditional phone package," he added.
With respect to smartphones, IDC said a few weeks ago the region is expected to ship 11mn smartphones in 2010, a significant recovery from 7mn in 2009 and 9mn in 2008.
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