Research shows that Motorola's low end mobile phones are the best

Aug 10, 2007 07:29 GMT  ·  By

Motorola has just earned the top place in the latest Vendor Matrix top, as ABI Research has concluded in their study results. Nokia has managed to reach only the second place, but is moving up rapidly, with Samsung and LG sharing the place following it.

It is quite surprising to see Motorola at the top of this ranking, as their most successful device has been the RAZR model, a high-end phone. Moreover, the company has struggled to hold on to their position as the phone producer with the world's second best sold devices through the launch of mobile phones capable of similar evolved performances. Still, what ABI Research has appreciated in their product line has also been the quality and originality of the low cost handsets.

"Motorola has the strongest patent portfolio in GSM technology and got a head start in the ULCH market. Having won the tenders for the GSM Association's Emerging Markets Handset initiative, Motorola provided 12 million ULCHs to emerging markets in Asia, Africa, and the Middle East", observes industry analyst Shailendra Pandey.

"Nokia is catching up quickly. Recent quarters have seen a big slump in the financial performance of Motorola's mobile devices business, so it will be difficult for them to maintain a leading position in the low margin ULCH market for long. Nokia on the other hand will benefit from the fact that it holds a much higher share of emerging markets and also has better and more well-established distribution networks", Shailendra Pandey further suggests.

ABI Research has considered during this study that an Ultra Low Cost Handset is actually a mobile phone with a retail price below USD 50.00. They have evaluated mobile phone producers according to several criteria, such as Innovation and Implementation.

Moreover, the research company has taken into account IP portfolio, handset user interface, battery life, product line segmentation and product differentiation, local language support, product life cycle and packaging. Vendors have received scores on each field and then been placed in an overall ranking.