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Strategy Analytics report finds handset replacement rates are stabilizing

BOSTON-Strategy Analytics Inc.’s “Global Handset Market: 2Q 2002 Handset Market Share Update” found 96.7 million handsets were shipped in the second quarter, and it estimates 417 million handsets will be shipped for the full year.

Global handset shipments indicate a quarterly stabilization in replacement rates in Western Europe that is expected to carry into the third quarter and holiday season, said the report. Samsung Corp.’s surging GSM performance will challenge Siemens AG and Motorola Inc. for second GSM market share position.

“Replacement rates have steadily fallen over the past 18 months, but last quarter gives us indications that they have stabilized, in Western Europe especially, and make us optimistic that the third quarter will see this trend continue. If this holds true, it would be a positive way to begin the crucial holiday season,” said Chris Ambrosio, a director in the Global Wireless Practice at Strategy Analytics

The firm also found:

  • Siemens maintained handset profitability on shipments of 8.2 million units, up 41percent from second-quarter 2001.
  • Motorola has leveraged its popular v60 design to build shipments in CDMA and GSM handsets.
  • Sony Ericsson Mobile Communications shipped 5 million handsets but still lacks entry-level products to carry volume growth.

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