Mobile phone sales to slow in 2007

Global sales of mobile phones, while still buoyant, are growing at a slower rate as the market for first-time owners shrinks, according to market research released Friday by IDC.

Vendors shipped 256.4 million units in the first quarter of 2007, up 10 percent year on year, but shipments were down 13.8 percent from the previous quarter. Year-on-year growth in each quarter of 2006 was over 20 percent.

First-quarter sales growth in 2007 was driven by new mobile phone customers in emerging markets, as well as replacement sales in mature markets, according to IDC.

As more new customers join mobile networks, fewer prospective customers remain, resulting in a gradual shift of sales from first-time owners to replacement handsets. Sales will continue to grow but at a lower rate, IDC said.

Rankings of the top five mobile phone vendors remained unchanged in the first quarter of 2007.

Nokia shipped 91.1 million units in the first quarter, up 21.3 percent, giving the company a global market share of 35.5 percent.

Motorola shipped 45.4 million units, down 1.5 percent. Its global market share was 17.7 percent.

Samsung Electronics reported shipments of 34.8 million, an increase of 20 percent, bringing its total market share to 13.6 percent.

Sony Ericsson Mobile Communications posted the largest year-on-year growth of 63.9 percent, shipping 21.8 million units. Its market share rose to 8.5 percent.

LG Electronics registered flat growth of 1.3 percent, with 15.8 million units, giving the company a market share of 6.2 percent.