Tough competition for the second place won by Samsung

Jul 16, 2007 15:03 GMT  ·  By

Samsung has managed to surpass Motorola in the world phone sales, as this year's second quarter financial results reveal. In fact, Motorola is the company which has regressed most of all in the classification for the top leading handset producers.

The danger of losing its place as the second mobile phone producer has been threatening Motorola for some time now. The company has wasted all its chances for a rebound by failing in making any of its new phone models the successes that they needed in order to stand hard on their position.

Nokia currently stands as the leading mobile phone manufacturer, at a considerable distance from other companies. Actually the strongest fight is that for the second place, as Motorola and Samsung have been making each other serious competition for some time now.

Although it has managed to move one step further in the world classification of cellular manufacturers, the second quarter of this year has failed in being a productive one for Samsung too. Still, this company's fall has been a smaller one than in Motorola's case.

Samsung has managed to ship almost 38 million mobile phones this quarter, whereas Motorola has been unable to go over 36 million. The overall company revenue of USD 16 billion is only four percent higher than what Samsung managed to earn a year ago in the same period. Moreover, results have shown that this company's sales tend to rely more on the entry-level handsets, as the average price per sold unit has dropped.

Samsung has seen this success as a result of the appreciation that their Ultra Edition devices have received from customers. Strategy analytics see a bright future for this company, as they give it high chances of managing to reach a 40 percent market share when it reports its third quarter sales in August, this year.