Cell Phone Shipments Reach 1 Billion

By Ed Oswald, BetaNews

January 25, 2007, 8:01 PM

For the first time, cell phone shipments topped the one billion mark in 2006, a feat that was helped along by a 20 percent increase in shipments during the holiday quarter to 295 million units, according to research firm IDC.

2006's total of 1.02 billion units was up 22.5 percent from the previous year's total of 833 million. Motorola was able to gain ground on market leader Nokia, however in both cases the companies felt the sting of strong competition. Profit margins declined for both companies, IDC said.

Nokia shipped 105.5 million handsets, an increase of 26 percent year-over-year, to end the year with a 35.8 percent market share. Motorola shipped 65.5 million units, up 47 percent from a year ago, for a 22.3 percent market share.

Rounding out the top five were Samsung, with 32 million devices shipped, up 17.6 percent, grabbing 11 percent of the market; Sony Erricsson, shipping 16.1 million handsets and up 61.5 percent for an 8.8 percent share; and LG, which shipped 17 million handsets, up about five percent, although saw its market share fall to 5.8 percent.

Leading growth were developing markets, accounting for over half of all shipped devices. "Mobile phones are seen as both a practical necessity and a status symbol in many emerging markets," IDC analyst Ramon Llamas said.

Llamas said the firm expects this trend to continue for some time as most emerging markets still have much room for growth, and is seen as a status symbol and necessity in these regions. Additionally, location-based services are seen as a growth driver in the coming months, and devices like the popular BlackBerry Pearl will help spur sales as well.

"It is no secret that the vast majority of people in society use email, regardless of their profession, and a device like this has made mobile email more of a reality," Llamas added.