U.S. Handset Sales Shot Up 5.3% In Q2

The latest market data from the independent research and consulting firm – Strategy Analytics, shows mobile phone shipments in the United States, reached 41.9 million units during Q2’08, up 5.3% from 39.8 million in Q2’07.

Some industry observers expected shipments to drop on economic fears and a tightening on consumer-spending. However, it seems that consumers have shown complete indifference toward negative economic headlines which unfortunately continue rolling-in, in a systematic way. By purchasing replacement phones at an optimistic rate, consumers have shown a clear perspective in relation to this particular market.

In addition, their interest — based on the latest figures, in having a high-speed browsing experience on a mobile device and the demand that currently exists out there for visually sophisticated navigation and location applications, is increasing and attracting more and more interest into this particular field. But one must recognize however, iPhone’s entry into the market scene – with its innovative phone user interface which further fueled consumer interest. Pushing this way the high-end mobile phone and smart phone segments forward.

With cell phones becoming flashier by the week, some companies have fared better than others, gaining in the process – market share.

Motorola Inc. (MOT) retained its U.S lead with 25.8 % of the market share. Neil Mawston, Director at Strategy Analytics said:

Motorola’s strong distribution network and deep carrier-relationships proved crucial in maintaining share in both GSM and CDMA markets. Motorola is not yet out of the woods, but these are encouraging, early signs of stabilization. [Via MarketWatch]

Other findings from Strategy Analytics’ report includes – South Korea’s LG, came in second in the U.S market, after selling 16.8 million phones in the first half of the year. The co. aims to hold 22% of the market by the end of fiscal ’08.

Research-In-Motion (RIMM), maker of the Blackberry was also a significant winner. The co. for the first time cornered 10% of U.S. cellphone sales in Q2’08. The Canadian firm, notes Strategy Analytics, is seeing significant success with its balanced portfolio of consumer and enterprise handsets, crucial in a maturing market.