Mobile phone shipments up 14.5% in second quarter; Nokia retains lead

MANILA, Philippines - Mobile phone manufacturers shipped 317.5 million units in the second quarter of the year, up 14.5 percent from 277.2 million units shipped during the same period last year, according to research firm IDC.

The number brings the total number of mobile phones shipped globally from January to June this year to 620.6 million units, up 18.5 percent from the 523.5 million units shipped during the first half of 2009.

In its latest Worldwide Quarterly Mobile Phone Tracker released last July 29, IDC said the demand was driven primarily by smartphone vendors and companies outside the top five leaders worldwide.

“Companies with a strict focus on the smartphone market like Research In Motion, Apple and HTC have clearly benefited from steadily increasing user interest,” Ramon Llamas, senior research analyst with IDC’s Mobile Devices Technology and Trends team, said in a statement.

However, IDC was quick to explain that it is not correct to dismiss worldwide leaders outright as demand for the second quarter was also fueled by entry-level handsets and mid-range devices, which have long been the domain of the worldwide leaders.

For this quarter, Nokia retained its lead among mobile phone manufacturers, shipping around 111.1 million units or a 35 percent market share worldwide.

Coming in second was Samsung, which sold 63.8 million units, followed by LG Electronics (30.6 million), Research in Motion (11.2 million), and Sony Ericsson (11 million).

According to IDC, the quarter that just ended saw RIM posting the highest year-over-year gain (40 percent) of all the top five vendors, a feat it said was “accomplished by its singular focus on the smartphone market.”

During the quarter, IDC said RIM shipped its 100-millionth BlackBerry device, launched BlackBerry Pearl 3G and BlackBerry Bold 9650, and unveiled its new BlackBerry 6 operating system.

LG Electronics, on the other hand, rebounded during the quarter and launched two Android-powered smartphones - the Ally and the Optimus Q.

Sony Ericsson, for its part, launched Android-powered, high-end smartphones Xperia X10, X10 mini, and the X10 mini pro.

IDC sees the continued growth of the smartphone market for the rest of the year. Nokia itself is optimistic with the upcoming launch of its N8 smartphone, while Samsung is bullish on its Galaxy S smartphone and other touch-screen models.

Last Tuesday, RIM launched its newest smartphone, which is said to be targeted at general consumers rather than business sector - the Blackberry Torch. It promises, among other things, “iPhone-like” features and is powered by the BlackBerry OS 6. The news came at the heels of the BlackBerry ban in Saudi Arabia.

Android phones are gaining ground the market, taking the lead in the US market in the second quarter, according to recent reports.

Driving sales for the Google-backed OS were handsets from HTC, Motorola, Samsung, Sony Ericsson, and LG. 

The looming smartphone war is interesting news to follow in the countdown to the Christmas season when demand for replacement handsets is high and more consumers are starting to look at the phone more as a social media device than a communication tool.