Market Research Consulting at Telecom Trends International, Inc.

Top Four Mobile Handset Vendors Shipped 74 Percent of Handsets Worldwide in 2002

Samsung Grew Fastest Among the Top Four, Followed by Siemens; SonyEricsson Share Declines

TTI First to Release Global Handset Shipment Figures

Falls Church , VA — January 31, 2003 – The top four vendors – Nokia, Motorola, Samsung, and Siemens – strengthened their hold of the mobile handset market during 2002, each increasing its share, according to Telecom Trends International. Together, they increased their share of the market from 68.6 percent in 2001 to 73.6 percent in 2002. Among the top four, Samsung grew the fastest, registering a growth of 35.1 percent, and increasing its gap with Siemens.

Naqi Jaffery, President, Telecom Trends International, said Samsung has been riding on its successes in 2001 when it emerged as the third largest handset vendor. That year, Samsung decided to go forcefully after overseas markets for all the three mobile phone standards – CDMA, GSM, and TDMA.

Siemens, which has been aggressively expanding its market share, grew at a rate of 24.3 percent, and in turn widened its gap with SonyEricsson, Mr. Jaffery said. SonyEricsson’s negative growth rate was higher than the rest of the market which registered had a negative growth as well, he said.

Nokia, which has a commanding lead in the handset market, grew its market share by 8.6 percent, a slower rate as compared to its three closest competitors, Telecom Trends International said. Motorola, which holds the second position in the handset market, increased its share by 13.1 percent primarily because of a broad portfolio of lower priced handset models, it said.

The research firm said that Nokia sold a record 46 million units in the fourth quarter of 2002, with a market share of 39 percent, its highest ever share. Factors contributing to Nokia’s success include the company’s rollout of 33 new products and to the emergence of Series 60 platform as a leading platform for smart-phones.

During the fourth quarter, Motorola increased its market share by 19 percent, with major gains in North America and Latin America . Motorola continued to be the market share leader in China , the world's largest handset market, while gaining co-leadership in market share in the U.S. with Nokia.

Telecom Trends International said the wireless handset market grew at a rate of 6.6 percent, going from 380 million units shipped in 2001 to 405 units shipped in 2002.

Handset Sales in Units

	2001 Sales in Units (M)	2001 share	2002 Sales in Units (M)	2002 share	Growth rate
Nokia	139.9	36.8%	152.0	37.5%	8.6%
Motorola	62.7	16.5%	70.9	17.5%	13.1%
Samsung	29.6	7.8%	40.0	9.9%	35.1%
Siemens	28.4	7.5%	35.3	8.7%	24.3%
SonyEricsson	27.9	7.3%	22.9	5.7%	-17.9%
Others	91.5	24.1%	83.9	20.7%	-8.3%
Total	380.0	100.0%	405.0	100.0%	6.6%

Source: Telecom Trends International

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Telecom Trends International (TTI) is a consulting and market research firm that offers expert advice on emerging telecommunications developments. TTI conducts leading-edge research on trends and developments in the telecommunications marketplace, and disseminates that research through published reports, custom projects, briefings, and advisory services. The company performs market analysis, technology assessment, strategic planning, and due diligence.