Nokia Led US Handset Market in 2002 with Razor-Thin Edge over Motorola, Says Telecom Trends International

Samsung, Kyocera, and LG Made Gains While SonyEricsson and Audiovox Fell Into Single Digits

Falls Church , VA — January 15, 2003 – Nokia maintained its lead in handset sales in the US during 2002 with a razor-thin lead over Motorola, according to Telecom Trends International (TTI). William Wallace, TTI’s lead analyst for mobile devices and services, said Motorola had a slight edge over Nokia during the 3rd and 4th quarters which narrowed Nokia’s lead for 2002.

Of the 72 million handsets sold in the US in 2002, Nokia had a market share of 26.5 percent, down from 32.0 percent in 2001. Motorola’s share, on the other hand, increased to 26.0 percent in 2002, up from 20.8 percent in 2001. Mr. Wallace, who tracks the handset market, attributed Motorola’s success to the popularity of v.60 series in multiple standards. The successful launch of T720, again in multiple standards, further aided in Motorola’s success in the 4th quarter, he said.

Asian manufacturers have strengthened their position in the US market with Samsung, Kyocera, and LG making impressive strides with a rich mix of products, Mr. Wallace said. Both Samsung and Kyocera locked down the 2nd tier market, taking their market shares into double digits.

Samsung’s market share increased from 9.3 percent in 2001 to 11.8 percent in 2002, and Kyocera’s share jumped from 8.5 percent in 2001 to 10.5 percent in 2002. Mr. Wallace attributed Samsung’s success to its CDMA product portfolio and to its successful launch into the GSM market. With the largest percentage growth – from 2.0 percent in 2001 to 6.0 percent in 2002, LG edged closer to SonyEricsson which ended up in the 5th place.

SonyEricsson and Audiovox witnessed some major setbacks. SonyEricsson’s share declined from 10.7 percent in 2001 to 6.9 percent in 2002, representing a significant blow to the Ericsson/Sony joint venture. Audiovox’s share saw the steepest decline, plummeting from 11.5 percent in 2001 to 5.3 percent in 2002. Both Ericsson and Audiovox need to closely examine their strategy in the US if they are to stage a comeback in this fiercely competitive market, Mr. Wallace said.

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.

William Wallace is a recognized authority on mobile devices, having worked extensively as an analyst and consultant to the mobile device industry. Mr. Wallace holds an MBA degree with over 17 years in experience in strategic planning, market analysis and competitive intelligence, forecasting and inventory management, and pricing and financial analysis.