Worldwide Mobile Phone Market Experiences Slower Growth as Smartphone Purchases Soften in the Third Quarter, According to IDC

from Engadget:

>> The worldwide mobile phone market grew 12.8% year over year in the third quarter of 2011 (3Q11), as smartphone growth declined in key mature markets. According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, vendors shipped 393.7 million units in 3Q11 compared to 348.9 million units in the third quarter of 2010. However, the 12.8% growth was higher than IDC's forecast of 9.3% for the quarter and stronger than the 9.8% growth in 2Q11.

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"Smartphone centricity continues to be the hallmark of the mobile phone market," says Ramon Llamas, senior research analyst with IDC's Mobile Phone Technology and Trends team. "Two years ago, smartphones comprised just a small portion of overall shipments among the leading vendors. Today, that proportion has grown considerably, thanks in large part to LG, Motorola, Samsung, and Sony Ericsson making Android smartphones a priority. At the same time, the growing presence of companies focused exclusively on the smartphone market - Apple, HTC, and RIM - also demonstrate the impact that smartphones have had on the mobile phone market as a whole."

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Nokia reversed a global market share on a sequential basis last quarter thanks to stronger feature phone sales in key regions as well as the clearing of inventory backlogs in traditional strongholds, namely China and Europe, which led to a sharp year-over-year shipment and share decline last quarter. Nokia's smartphone fortunes could improve in quarters to come now that it has introduced the Nokia Lumia devices, powered by Windows Phone 7, to markets where its brand is still relatively strong and in areas where the company has lost share over the past two years.

Samsung registered double-digit growth compared to the third quarter a year ago and also outpaced the market. The company's growth was again driven by smartphone sales, such as the Galaxy S2. Smartphone sales were notably higher in emerging markets including China. Samsung outpaced the feature phone market as well in terms of growth. The vendor didn't close the market share gap on Nokia for the top mobile phone position, but it remains within striking distance.

LG Electronics maintained its position as the number 3 mobile vendor worldwide for the twelfth quarter in a row, but continued soft demand for both its feature phones and smartphones led to volume levels not seen since 2Q 2007. With only a few new devices launched and an aging feature phone portfolio, LG's warnings of lower year-over-year shipment volume appears to have come to fruition. By the end of the year, LG's grasp on the number 3 position may be loosened as Apple's aggressive smartphone campaign takes hold in 4Q 2011.