Converged Mobile Device Market Grows 42% in 2006

According to IDC's Worldwide Mobile Phone Tracker, the worldwide market for converged mobile devices pushed past the 20 million unit mark during the fourth quarter of 2006, and past the 80 million unit mark for the year. Fourth quarter of 2006 shipments were up 33.5% more than the same quarter a year ago. For all of 2006, vendors shipped at total of 80.5 million devices, 42.0% more than what they shipped in 2005.

"The robust growth in converged device shipments in 2006 was driven by substantially decreased price points and a greater selection of devices for consumers to chose from," said Ryan Reith, research analyst for IDC's Worldwide Mobile Phone Tracker. "Competitive pressures have driven price points below $200, making converged mobile devices more affordable to a broader base of users. More than ever before, vendors are focused on providing greater capabilities that differentiate their products while keeping costs in check."

Looking ahead, IDC maintains a positive outlook for converged mobile devices. "Lower prices and costs, coupled with raised interest among users, are a boon to nearly any market, and this one is no different. The key is to watch which vendors are taking which strategic steps in which regions in order to realize market share and profitability," added Llamas.

Top Five Converged Mobile Device Vendors- Q4 2006

Nokia ended 2006 much the same way it began the year – as the undisputed leader in the industry. Nokia's broad range of devices, ranging from the enterprise-oriented E-series to the multimedia-heavy N-series, has allowed the company to reach many users around the world. However, the company acknowledged that its presence among enterprise users, and among users in the Americas in general, had not lived up to expectations. To address these, Nokia announced several new E-series devices at 3GSM as well as the N75 targeted specifically for the Americas.

Research In Motion, whose BlackBerry devices have long been associated with enterprise mobility, took second place for both the quarter and the year. Much attention during Q4 went to RIM's BlackBerry 8100 Pearl, the company's first with an embedded camera and multimedia player. While the Pearl represented a departure from RIM's traditional models, its value proposition for enterprise connectivity and security remained the same – particularly, since IT managers could disable media features. RIM recently announced a follow up to the 8100, the 8800, which removes the embedded camera and includes a full QWERTY keyboard.

Motorola improved its position as one of the worldwide leaders of converged mobile devices in 2006, thanks in large part to the success of its A1200 MING in China and the MotoQ in North America. The company expects the success of the MING to carry over into Latin America later in 2007, while two new MotoQ designs, one for North America and Europe and another for Asia and High-Growth Markets, were announced at 3GSM.

Sharp was a relative newcomer to the converged mobile device space at the end of 2005, but has since released a new device each quarter in Japan. The introduction of its SH 903i during Q4 boosted volumes, enough for Sharp to grab a share of the number three spot with Motorola this quarter. For the full year, Sharp's cumulative shipments were not enough for it to be counted among the top five vendors for 2006.

Panasonic finished the quarter as the number five vendor worldwide, but was the only vendor among the top five to post negative year on year growth. Still, this represented a reversal in its pattern of steadily decreasing shipment volumes in Japan for the year. At the same time, Panasonic earned the honor of being the worldwide leader in Linux-based converged mobile devices for the quarter, with its P903i bringing up volumes this quarter.

Top Five Converged Mobile Device Vendors, FY 2006 (Preliminary)

Vendor



2006 Shipments

2006

Market Share



2005 Shipments

2006

Market Share



2006/2005

Growth

1. Nokia

38.7

48.1%

28.5

50.3%

35.8%

2. Research In Motion

6.0

7.5%

4.1

7.2%

46.3%

3. Panasonic

5.0

6.2%

5.5

9.7%

-9.1%

4. Motorola

4.9

6.1%

2.4

4.2%

104.2%

5. NEC

4.8

6.0%

5.5

9.7%

-12.7%

Others

21.1

26.2%

10.7

18.9%

97.2%

Total

80.5

100.0%

56.7

100.0%

42.0

Shipments in millions.

Source: IDC Worldwide Quarterly Mobile Phone Tracker, February 2007.

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Wow - poof!

SeldomVisitor @ 3/1/2007 5:26:14 PM # Q
From "Top Dog" to "Dog Gone".

Wow.

RE: Wow - poof!
hkklife @ 3/1/2007 5:34:01 PM # Q
Actually, in the face of the slew of competing handhelds in '07 and beyond...."dog food" might be a more appropriate moniker!



Pilot 1000-->Pilot 5000-->PalmPilot Pro-->IIIe-->Vx-->m505-->T|T-->T|T2-->T|C-->T|T3-->T|T5-->TX-->Treo 700P

RE: Wow - poof!
cervezas @ 3/1/2007 6:56:55 PM # Q
Poof? Was Palm ever in the top five of IDC's "worldwide converged devices"?

Handhelds aren't counted. IDC's "converged devices" definition refers to devices that obviate the need to carry a separate handheld and phone:

[Converged] mobile devices are either voice- or data-centric and are capable of synchronizing personal information and/or email with server, desktop, or laptop computers. Positioned to answer the "multiple device question," and replacing the need to carry a mobile phone and a pen-based handheld or a mobile phone and a pager.

Maybe I'm wrong, but I don't recall Palm ever making it into the top five of that list on the strength of the Treo alone.

Look at Motorola's 104% growth. That's almost all mobile Linux and almost all Asia. 'Course that's the same with Panasonic and NEC.

David Beers
Pikesoft Mobile Computing
www.pikesoft.com/blog

RE: Wow - poof!
SeldomVisitor @ 3/1/2007 7:14:21 PM # Q
Asia? Linux?

How about the Q?

RE: Wow - poof!
cervezas @ 3/1/2007 7:19:10 PM # Q
Asia? Linux? How about the Q?

The Q lost steam pretty quickly after the initial buzz, and in any case was small potatoes compared to the Ming in China. Moto didn't produce a GSM version of the Q in 2006 so it never broke out of the comparatively small U.S. smartphone market.

David Beers
Pikesoft Mobile Computing
www.pikesoft.com/blog

RE: Wow - poof!
SeldomVisitor @ 3/2/2007 6:14:27 AM # Q
> The Q lost steam pretty quickly after the initial buzz...

How do you know that?

RE: Wow - poof!
hkklife @ 3/2/2007 9:49:15 AM # Q
From the sources I've talkd to (store levels and district manager types) at Verizon, the 700w and Q both have rather high return rates last year to VZW stores. I hear of people returning the 700w for the 650 (or just a RAZR), returning the Q for the 700p, and returning the 700p straight up for their money back.

I'd actually wager that due to the user-friendliness and touchscreen, the 700p is a more appealing handset to neophyte smartphone users than veteran POS users who are aggravated by the lag/crashes/poor battery life etc.



Pilot 1000-->Pilot 5000-->PalmPilot Pro-->IIIe-->Vx-->m505-->T|T-->T|T2-->T|C-->T|T3-->T|T5-->TX-->Treo 700P

RE: Wow - poof!
cervezas @ 3/2/2007 10:35:29 AM # Q
> The Q lost steam pretty quickly after the initial buzz...

How do you know that?

An analyst I talked to last month. (Yeah, yeah, I know....) You can find hints of this publicly, though. Like here: http://biz.yahoo.com/ap/070105/motorola_outlook.html?.v=20

My point wasn't to say the Q has been a flop (I don't think it has) just that by all accounts it hasn't contributed to Motorola's sales growth nearly as much as their Linux smartphones. It's interesting because the products that are driving Moto's growth in the market measured by IDC are ones that most people in the US and EMEA aren't even aware exist.

Also interesting to see how language has profound effects on handset design. In countries with Latin alphabets smartphone designs that cram dozens of alphabetic keys onto the front of the handset are the rage. But you'll never see the Q, the Treo or the E61 in China. The Chinese language means that smartphones like the Ming are going the opposite direction and dispensing with the physical keypad entirely. Think about how this fact impacts OS design priorities and you may get a hint of another reason why Palm has been wary about ALP.

On the other hand, Palm must be pondering the fact that the Treo form factor has pretty limited prospects in the markets that are growing fastest. You have to wonder if the company that made the touchscreen computer famous isn't thinking "ya know... maybe big touch screen interfaces weren't such a bad idea after all."

Maybe Palm's revolutionary "Third Business" product will be the VisorPhone 2.0.

David Beers
Pikesoft Mobile Computing
www.pikesoft.com/blog

RE: Wow - poof!
cervezas @ 3/2/2007 11:12:50 AM # Q
Think about how this fact impacts OS design priorities and you may get a hint of another reason why Palm has been wary about ALP.

So I'm not misunderstood: ALP is designed to support QWERTY keyboards and the like. I'm just saying that Palm may worry that because of its Asian focus down the road ACCESS might not put their energies into innovating ALP in the same directions visa à vis input technologies that Palm itself would do if they had full control of the OS.

David Beers
Pikesoft Mobile Computing
www.pikesoft.com/blog
Reply to this comment

Bought out

surfmaniac @ 3/1/2007 7:15:15 PM # Q
None of this matters. This company will be merged or bought out by summertime...

RE: Bought out
ChiA @ 3/2/2007 9:11:17 AM # Q
If not then there's always ebay, the same miserable fate which befell Benq/Siemens mobile when nobody else was willing to purchase it.

http://www.palminfocenter.com/comments/9254/#130474

I wonder how much Yankowski's suit would fetch?
http://www.palminfocenter.com/comments/8437/#120123


RE: Bought out
mikecane @ 3/2/2007 12:33:07 PM # Q
Nokia is doing it to get back at me for mercilessly strafing their sh!tty 770:

http://www.brighthand.com/default.asp?newsID=12829

Reply to this comment

The Google Switch: an iPhone killer?

mikecane @ 3/6/2007 9:14:48 AM # Q
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