22/04-04   -   Pressemeddelelse

European Mobile Device Market Grew 25% in 1Q04, Says IDC

Over 1.5 million units shipped in Western Europe: Nokia stretches mobile device market lead to 43%: Windows Mobile devices dominate datacentric sales

The market for European mobile devices grew by 25.6% compared to the same period last year, driven by sustained smart phone volumes and continued growth for handheld device vendors. Standalone handheld device vendors recorded growth of 9%, as GPS bundles failed to record the same success in retail stores as in 4Q03 and lower margins forced at least one vendor to withdraw from the handheld market.

Converged device volumes continued to grow by around 35% during the quarter, although recorded growth was slower than expected. The business market displayed a greater desire for mobile solutions, reflected in the continued growth of vendors such as RIM with its integrated end-to-end email and personal information management solution. However, despite strong demand and healthy volumes, Nokia and Sony Ericsson failed to execute as efficiently as in previous quarters.

"Clearly, organizational restructuring and operational changes affected Nokia´s ability to execute as efficiently in the first quarter of the year," said Andrew Brown, program manager for Mobile Devices at IDC. "Nevertheless, these changes will benefit Nokia in the longer term and allow a greater focus on the burgeoning market for business mobility."

The market for standalone handheld devices was limited to single-digit growth as vendors focused on managing channel inventory, rather than selling-in higher volumes of devices. The entry-level handheld market continued to witness shrinking margins. Fewer promotional activities, particularly through the food retailer channel in Germany, also limited overall volumes, which had previously been driving volumes over the last few quarters.

"With retailers recognizing that PDAs are no longer the "in vogue" consumer electronic product, a growing number of handheld device models now vie for a dwindling amount of shelf space. Increased competition and pricing pressure will most affect those vendors that continue to deliver an uninspired product mix and may lead to greater consolidation and market withdrawals," said Tim Mui, senior analyst for Mobile Devices at IDC.

Vendor Highlights
· Nokia - The vendor´s mobile device portfolio is currently skewed towards low- and mid-range handsets, with only the Symbian/Series 60-based Nokia 6600 providing a full feature set. Nokia was also unable to capitalize as effectively as normal due to internal reorganization and failed to exploit the usual seasonal market pick-up in March. However, the more richly featured Symbian handsets still comprised 7% of Nokia´s overall mobile device product mix in 1Q04.
· PalmOne - The pioneer of the handheld segment, which recently acquired Handspring, managed to regain the lead of the standalone handheld market, boosted by smart phone Treo 600 shipments of just under 20,000 units. The vendor managed to increase its overall average unit price with Tungsten handheld devices representing a higher proportion of the mix than in previous quarters at the expense of the low-end market leader, the Palm Zire.
· HP - The leading Pocket PC vendor focused on maintaining overall channel efficiencies in major markets such as Germany and the United Kingdom, as well as gaining ground on Palm´s key markets such as France through retail initiatives. The vendor also recorded success by gaining several contracts in the enterprise market, where it continues to successfully tailor mobile solutions to meet the demands of business customers.
· Sony Ericsson - Sony Ericsson recorded another performance of strong growth, with the P900 continuing to emphasize the vendor´s decision to focus on imaging, multimedia, entertainment, and industrial design. Demand for the new P900 Symbian/UIQ smart phone remained strong throughout 1Q04, with supply not able to meet demand for these new products. Overall, Sony Ericsson´s Symbian-based phones comprised 4% of the vendor´s overall mobile device mix, with the vendor continuing to focus more strongly on its traditional mobile phones such as the T610 and T630.
· Siemens - Shipments of the much anticipated and delayed SX1 Symbian/Series 60 smart phone began to rise, especially in Germany, in 1Q04, which moved the German vendor firmly into the top 5.

Notes:
· Vendor shipments are branded shipments and exclude OEM sales for all vendors.
· Handheld devices are pocket sized and are capable of synchronizing with desktop or laptop computers. Handheld devices are designed to access and manage data including office documents, multimedia, and games.
· Handheld devices do not include telephony but may include wireless capabilities that enable Internet access and text communication. These devices feature evolved operating systems or application environments such as the Palm OS, Pocket PC, Windows CE, Handheld PC 2000, and Linux or proprietary solutions and have the ability to download and run applications and store user data beyond their required PIM capabilities.
· Converged devices (smart phones, telephony-integrated PDAs). These pocket-sized devices feature a pen or keypad-centric design and are capable of synchronizing with a desktop or laptop computer. Positioned to solve the "multiple device question" and to replace the need to carry a mobile phone and a pen-based handheld or a mobile phone and a communicator, for example, these devices may also include an expanding list of features such as multimedia and email. These devices must match wireless voice capability to evolved operating systems, minimum 16-bit capability with the ability to download, run applications, and store user data beyond their required personal information management capabilities.

IDC´s European Quarterly Handheld Tracker monitors vendor sales and market shares across a range of key European geographies. For more information on this product and its deliverables, contact Program Manager Andrew Brown on +44 (0) 20 8987 7209 or email abrown@idc.com. Alternatively, contact your local IDC office.

About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a division of IDG, the world´s leading technology media, research, and events company. Additional information can be found at www.idc.com
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For more information, contact:
Andrew Brown
+44 (0) 20 8987 7209
abrown@idc.com

Terry Cummings
+44 (0) 20 8987 7231
tcummings@idc.com