Mobile device shipments return to growth in Q1

The worldwide mobile phone market grew 21.7 percent in the first quarter of 2010, according to new figures from IDC, a strong rebound from the market contraction seen a year earlier. Vendors shipped 294.9 million units in the first quarter of 2010 compared to 242.4 million units in the first quarter of last year, which had seen a 16.6 percent year-on-year decline. IDC attributed the growth to increasing demand for smartphones and the global economic recovery. Growing demand for smartphones also helped BlackBerry-maker Research In Motion (RIM) move into the top 5 vendor rankings for the first time, replacing Motorola and tied with Sony Ericsson at fourth place. “The entrance of RIM into the top 5 underscores the sustained smartphone growth trend that is driving the global mobile phone market recovery,” noted Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. “This is also the first time a vendor [Motorola] has dropped out of the top 5 since the second quarter of 2005, when Sony Ericsson grabbed the number 5 spot from BenQ Siemens.”

IDC believes the worldwide mobile phone market rebound will continue in 2010, though not at the same growth rate as the first quarter. “It should be noted that the market’s first-quarter growth, while impressive, is relative to one of the worst quarters in mobile phone industry history [1Q09],” noted Restivo. “The market’s growth should not be taken as a proxy for future quarters nor annual growth. In fact, the results essentially match our first quarter projections. We are still expecting growth of 11 percent for 2010.”

Top Five Mobile Phone Vendors, Q1 2010 (Units in Millions)
Source: IDC