Mobiles hit by touchscreen, camera and processor shortages

Global handset shipments for the third quarter have slowed down due to the shortage of key components.

Strategy Analytics's latest research has reported...

Global handset shipments for the third quarter have slowed down due to the shortage of key components.

Strategy Analytics's latest research has reported that handset shipments reached 327 million units in the third quarter, rising from 291 million units in the same period last year. But annual growth fell 3% to 13% compared to 16% during the first half of 2010.

The research firm said the second half of 2010 has been characterised by component shortages and economic uncertainty.

"We believe touchscreens, application processors and cameras are among the components experiencing volatile supply. Many component manufacturers reduced production output during the recession of 2009 and they are struggling, or even unwilling, to restore the capacity in the upturn of 2010," said Neil Mawston, director at Strategy Analytics.

Nokia maintained the top worldwide position with 34% of marketshare and 110.4 million handsets shipped worldwide despite growth being below market average. Samsung came second with 22% global marketshare with LG shrinking 10% in third place.

Apple experienced the strongest growth, overtaking RIM and Sony Ericsson to increase shipments 91% from last year to 14.1 million handsets.

Strategy Analytics predicts 370 million handsets to be shipped worldwide in the fourth quarter.

"There is a long tail of second-tier players emerging who are knocking on the doors of the top five players. ZTE, Sony Ericsson, Motorola, Huawei and Alcatel are all shipping volumes that are within touching distance of the leading group. ZTE, in particular, is growing at an above-average rate and stands a good chance of entering the top five in coming quarters," added Mawston

Global Handset Vendor Marketshare % Q1'10 Q2'10 Q3 '10
Nokia 37.00% 35.80% 33.80%
Samsung 22.10% 20.50% 21.80%
LG 9.30% 9.90% 8.70%
Apple 3.00% 2.70% 4.30%
RIM 3.60% 3.60% 3.80%
Others 25.00% 27.50% 27.60%

Source: Strategy Analytics

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