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Over 400 M. Cellphones to be Sold in APEJ in 2008: IDC

2008/03/25 | By Quincy Liang

Taipei, March 25, 2008 (CENS)--Cellphone shipments in the Asia/Pacific, excluding Japan (APEJ) region, reached 366 million units in 2007, up 18% from previous year, which is expected to further grow to exceed 400 million units in 2008, a 10% year-on-year increase, according to the latest Asia/Pacific Quarterly Mobile Phone Tracker release by IDC, a premier global market-research firm.

Aloysius Choong, research manager of IDC's Asia/Pacific personal systems research, pointed out that the twin engines of this growth are India and mainland China, which together commanded more than 60% of shipments in the region. He predicted that the India market would see another 19% growth in 2008.

According to Choong, cellphone penetration rates currently are about 20% in India and 40% in China, implying there is still a big room for expansion.

IDC said that it expects the cellphone-number portability, which allows users to retain their phone numbers when changing service providers, to launch in India at the end of 2008, further spurring uptake in the country. In China, the market research and consultant firm said, Motorola's cautious approach to the low-end cellphone segment and the loosening of regulations have allowed more domestic players to join the game with affordable and attractive handsets, helping to expand the overall market.

Across most countries in the region, Nokia remains dominant, with its market share in APEJ surpassing 50% in 2007, up from 42% in the previous year.

Motorola, second place in 2006, suffered its share halved in 2007 due to the decreasing sales volume of its once-popular RAZR series and withdraw from the ultra-low-end segment. Samsung was thus able to jump into second place, supported by strong 3G product line-up.

Sony Ericsson and LG kept their positions at fourth and fifth, respectively, but both have experienced strong challenges in China from local competitors.

According to IDC's Asia/Pacific Joint Mobility Survey 2007, a study of over 2,000 consumers across six countries, almost 68% of current Nokia users indicated they expected to continue buy a Nokia in their next purchase. The brand loyalty rates for Samsung is 48% and 46% for Sony Ericsson in the same survey.

Asia/Pacific Cellphone Market (2006-2007)

Brand

2006

2007

Nokia

42.1%

50.2%

Samsung

10.9%

12.1%

Motorola

19.1%

8.3%

Sony Ericsson

5.8%

6.9%

LG

5.6%

5.2%

Others

16.5%

17.3%

Total

100.0%

100.0%

Source: IDC Asia/Pacific Mobile Phone Tracker, March 2008.