Global mobiles: Market charges into 2006

Despite a slight seasonal decline, worldwide shipments of mobile phones rose 26 per cent in the first quarter of 2006 compared with the same period last year, according to research company IDC.

A total of 226.7 million mobile phones were shipped, as the global market continues to thrive on consumers replacing older phones with new purchases, said a study from IDC released on Thursday.

Nokia held its top spot, retaining a third of the global market share and enjoying 39.6 per cent growth. Motorola posted a 60.6 per cent gain for the quarter, boosted by its new Razr models, which have continued to propel sales. Motorola controlled 20.3 per cent of the market in the first quarter of 2006.

Samsung, while still holding third with more than 29 million phones shipped, slipped in sales with only 18.4 per cent growth. It also lost market share capturing only 12.8 per cent, down from 13.6 per cent in the first quarter of 2005.

LG Electronics came in fourth for market share with 6.9 per cent but experienced an operating loss for the quarter due to marketing expenses and fewer sales.

Despite a midyear slowdown in 2005, which IDC attributes to the government's crackdown on import tax evasion, Russia remains one of the most important handset markets in Europe. It has continued to expand due to replacement purchases and the luxury market. Retail prices have increased as a result, mirroring the mature growth pattern of other large European markets, IDC said.

Candace Lombardi writes for CNET News.com