Samsung Overtakes Motorola in Cell Phone Sales
Samsung Electronics outpaced Motorola in the second quarter to become the world's second largest mobile phone maker. It's the first time Samsung has been able to climb to the number two spot, and it happened thanks to Samsung's strategy to expand sales and Motorola's lackluster results.
Motorola said on July 19 that it shipped 35.5 million mobile phones in the second quarter, which is 1.9 million less than Samsung's 37.4 million shipments in the same period. Motorola posted a US$330 million operating loss in the quarter, after a $230 million loss in the first quarter.
Samsung's key to overtaking Motorola was expanding sales of low-priced phones costing $60 to $70 in newly-emerging markets such as India and China. In the second quarter, Sony Ericsson ranked fourth with 24.9 million worldwide shipments, followed by LG with 19.1 million. Nokia, the number one mobile phone maker, was estimated to have sold 99 million phones worldwide.
Sony Ericsson posted the highest average sales price (ASP) at $172 per unit, followed by LG with $160, Samsung at $148 and Motorola at $120.
Daishin Securities analyst Kim Gang-oh said, "Motorola is launching an aggressive sales strategy with its new models, so the competition between Samsung and Motorola is expected to heat up in the third quarter."
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