Worldwide sales of mobile phones reached 294.3 million units in the first quarter of 2008, a 13.6 per cent increase over the first quarter of 2007, according to Gartner. Sales of mobile phones in Western Europe decreased 16.4 per cent from the first quarter of 2007, the first decline in this region since Gartner began tracking the mobile devices market in 2001.

Nokia sold 115.2 million mobile phones in the first quarter of 2008, as its market share slipped slightly to 39.1 per cent (see Table 1). Nokia was able to maintain market leadership thanks to the richness of its portfolio, which appeals to users in both emerging and mature markets. Sales in the ultra-low-cost segment remained strong due to Nokia’s distribution strategy, economies of scale and brand power. However, competition in this segment and at the high end is increasing. To stay ahead, Nokia will have to continue to integrate new technologies in its handsets and improve usability and design.

Samsung maintained its momentum in the first quarter of 2008 with sales reaching 42.4 million units. The South Korean vendor not only held on to its No. 2 position worldwide, but it also widened the gap from third-placed Motorola as its market share grew to 14.4 per cent. Samsung is reacting quickly to the focus on touch-screen devices. “Samsung’s choice to be a quick follower has paid off so far, but it needs to focus on diversifying its designs and strengthening its lower-end portfolio to increase sales in emerging markets,” said Ms Milanesi.

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