Mobile phone market grew 18.5% in 2010 to 1.39 billion devices

The worldwide mobile phone market grew 17.9% in the fourth quarter of 2010 (4Q10), a new quarterly high driven by smartphones. According to the International Data Corporation (IDC)

The IDC Worldwide Quarterly Mobile Phone Tracker, shows vendors shipped 401.4 million units in 4Q10 compared to 340.5 million units in the fourth quarter of 2009. Vendors shipped a total of 1.39 billion units on a cumulative worldwide basis in 2010, up 18.5% from the 1.17 billion units shipped in 2009.

The strong quarterly and annual growth comes after a weak 2009, which saw the market decline by 1.6%. A stronger economy and a wider array of increasingly affordable smartphones helped lift the market to its highest annual growth rate since 2006 when it grew 22.6%.

“The mobile phone market has the wind behind its sails,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Quarterly Mobile Phone Tracker. “Mobile phone users are eager to swap out older devices for ones that handle data as well as voice, which is driving growth and replacement cycles.”

ZTE jumps to fourth place

It’s not just smartphone-focused suppliers that capitalized on the mobile phone market’s renewed growth last year. ZTE, a company that sells primarily lower-cost feature phones in emerging markets, moved into the number 4 position worldwide in 4Q10. It is the first quarter the Chinese handset maker finished among IDC’s Top 5 vendors.

“Change-up among the number four and five vendors could be a regular occurrence this year,” added Ramon Llamas, senior research analyst with IDC’s Mobile Devices Technology and Trends team. “Motorola, Research In Motion, and Sony Ericsson, all vendors with a tight focus on the fast-growing smartphone market and who had ranked among the top five worldwide vendors during 2010, are well within striking distance to move back into the top five list.”

Phone sales for 2010

Top Five Mobile Phone Vendors, Shipments, and Market Share, 2010 (Units in Millions)
Vendor 2010 Unit Shipments 2010 Market Share 2009 Unit Shipments 2009 Market Share Year-over-year Change
Nokia 453.0 32.6% 431.8 36.9% 4.9%
Samsung 280.2 20.2% 227.2 19.4% 23.3%
LG Electronics 116.7 8.4% 117.9 10.1% -1.0%
ZTE 51.8 3.7% 26.7 2.3% 94.0%
Research In Motion 48.8 3.5% 34.5 2.9% 41.4%
Others 437.7 31.5% 333.5 28.5% 31.2%
Total 1388.2 100.0% 1171.6 100.0% 18.5%

Source: IDC Worldwide Mobile Phone Tracker, January 27, 2011

Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.

Phone sales for Q4 2010

Top Five Mobile Phone Vendors, Shipments, and Market Share, Q4 2010 (Units in Millions)
Vendor 4Q10 Unit Shipments 4Q10 Market Share 4Q09 Unit Shipments 4Q09 Market Share Year-over-year Change
Nokia 123.7 30.8% 126.8 37.2% -2.4%
Samsung 80.7 20.1% 68.8 20.2% 17.3%
LG Electronics 30.6 7.6% 33.9 10.0% -9.7%
ZTE 16.8 4.2% 9.5 2.8% 76.8%
Apple 16.2 4.0% 8.7 2.6% 86.2%
Others 133.4 33.2% 92.8 27.3% 43.8%
Total 401.4 100.0% 340.5 100.0% 17.9%

Source: IDC Worldwide Mobile Phone Tracker, January 27, 2011

Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.