Nokia Grabs More Market Share from Motorola

Includes: GOOG, MC-OLD, NOK
by: Steven Towns

A Gartner research report says Nokia gained another 3.2% global handset market share, up to 36.9%, during the second quarter of 2007. Motorola's share of the pie was sliced by 7.3% to 14.6%, still good enough for second best, but increasing the likelihood of being surpassed by Samsung, which actually shipped more handsets. Samsung's market share rose 2.2% to 13.4%, as it was said to have "aggressively" built inventory in order to exploit Motorola's woes. Gartner research director Carolina Milanesi said Nokia's market share could reach 40%, as it registered Q2 expansion in every region except North America. Overall industry sales increased 17% to 270.9 million units in Q2. Gartner lowered its full-year growth forecast to 14%, or 1.13B units, from 1.15B units previously. The arrival of the iPhone is expected to negatively impact Motorola. Gartner's Milansei says Sony Ericsson, which added 2.4% market share to 9.0%, is a "solid number four" ahead of LG. Separately, Matsushita Electric Industrial said it has NOK 24 08 2007 Chart MOT 24 08 2007 Chartagreed to cover the costs related to Nokia's Aug. 14 recall of 46 million Nokia-branded batteries, and predicts it will incur between ¥10B - ¥20B ($86M - $172M) in costs. Nokia says the batteries could overheat, and offered to replace them for free (full story).

Sources: Bloomberg, Red Herring, Wall Street Journal
Commentary: Nokia Seeks to Block U.S. Import of Qualcomm ChipsNokia Issues Warning on 46M BatteriesGoodbye Moto, Hello Nokia
Stocks/ETFs to watch: NOK, MOT, MC. ETFs: MTK, WMH
Earnings call transcripts: Nokia Q2 2007, Motorola Q2 2007

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