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Huge Phone Sales for Sony Ericsson, Profit Fall for Motorola

This is what the results of the first quarter of the year 2007 show

By Elena Balan, Communications News Editor

4th of June 2007, 06:43 GMT

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Results for the first quarter of the year 2007 are here and show surprises in the evolution of the mobile phone producers. While little changes have come in the top 5 of such companies, some of them have reached high profit rates, while others have unexpectedly dropped in numbers.

Overall, the profit growth of the mobile phone market
has been of 9 percent, with almost 90 million cellulars sold. Part of the reason for this is also that of the increasing number of low-end and mid-ranged handsets that have been sold in the Middle East and Africa, as part of a market expansion process.

The main vendor for such affordable but low-tech mobile phones is Nokia, as it took high interest in bringing its products on new markets. Actually, Nokia has registered a profit growth of 22 percent, making it reach an impressive market share of 44 percent.

The surprise of the analysis proved to be Sony Ericsson, which registered a growth of more than 50 percent in profit. Although it currently stands on only the fourth position in the top, this company puts a great amount of pressure on other mobile phone vendors, considering the fact that this is the sixth major growth in profit that it has registered in the last years.

The only company to register a drop of 16 percent in profit was Motorola, which slipped to third position. The company is looking to recover from this fall by introducing 3G Motorola Q and RIZR Z8 phone models in order to refresh their product line.

The result of the latest EMEA Mobile Phone Tracker has showed that the first 4 mobile phone vendors have actually taken 86 percent of the entire market in the first quarter of the year 2007. This means that we are witnessing an extreme polarization of the mobile phone market. In fact, Nokia, Samsung, Sony Ericsson and LG Electronics have all reached profit raise.

TAGS:

Sony Ericsson | Motorola | Nokia | profit | EMEA
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