Research firm IDC released its latest Worldwide Mobile Phone Tracker report on Thursday and revealed that shipments of Apple’s iPhone jumped 142% over the same period last year. Samsung’s shipments rose 10% year-over year, ZTE saw a 36% increase in shipments and LG’s shipments dropped 18.9%. The entire mobile phone market grew 11.3% year-over-year, but that was lower than IDC’s 13.3% growth projection. The feature phone market declined 4% as the U.S., Japan and Western Europe jumped on the smartphone bandwagon. “While this is not a new trend – smartphones have been the primary engine of growth for the last several quarters – it does mark something of a transition point, as demonstrated by the growing number and variety of smartphones featured in the vendors’ portfolios,” said Ramon Llamas, senior research analyst with IDC’s mobile phone technology and trends team. Read on for IDC’s full press release.

Worldwide Mobile Phone Market Grew More Than 11% in the Second Quarter; Feature Phones Decline for First Time in Almost 2 Years, According to IDC

28 Jul 2011

FRAMINGHAM, Mass. July 28, 2011 – The worldwide mobile phone market grew 11.3% year over year in the second quarter of 2011 (2Q11), despite a weaker feature phone market, which declined for the first time since 3Q09. According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, vendors shipped 365.4 million units in 2Q11 compared to 328.4 million units in the second quarter of 2010. The 11.3% growth was lower than IDC’s forecast of 13.3% for the quarter and was also below the 16.8% growth in 1Q11.

The feature phone market shrank 4% in 2Q11 when compared to 2Q10. The decline in shipments was most prominent in economically mature regions, such as the United States, Japan, and Western Europe, as users rapidly transition to smartphones. This was the first decline since Q3 2009 and reflected a combination of conservative spending and continued shift to smartphones.

“The shrinking feature phone market is having the greatest impact on some of the world’s largest suppliers of mobile phones,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. “Stalwarts such as Nokia are losing share in the feature phone category to low-cost suppliers such as Micromax, TCL-Alcatel, and Huawei.”

“For the overall market to grow by double digits year over year, despite the decline in feature phones, is testament to the strength of the global smartphone market,” noted Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends team. “While this is not a new trend – smartphones have been the primary engine of growth for the last several quarters – it does mark something of a transition point, as demonstrated by the growing number and variety of smartphones featured in the vendors’ portfolios.”

Market Outlook

The feature phone forecast isn’t expected to be any rosier in the quarters and years to come. Shipment growth of the device type won’t exceed 1.1% in any year forecasted by IDC.

Regional Analysis

• The traditionally slow second quarter in Asia/Pacific was exacerbated by Nokia’s channel inventory corrections in China. Apple thrived in China thanks to strong iPhone 4 demand. As well, a number of domestic brands in Southeast Asia like CSL, Nexian, Q-Mobile, and Wellcom grew sales of Android-powered smartphones. China-based vendors gained share in India and Southeast Asia at the low end. In Japan, the impact of the earthquake continued into April and May as component shortages forced manufacturers to release new models in June while customer demand was harder to fulfill.

• In Western Europe, the market declined sequentially compared to the first quarter. The feature phone market declined while smartphone shipment growth slowed as phone makers and carriers reduced inventories in advance of expected third-quarter product launches. Feature phone dependent suppliers were not able to offset feature phone weakness completely with higher smartphone sales. The CEMA markets performed well on a year-over-year basis despite civil unrest in Egypt and other Arab countries, where sales were negatively impacted as a result. Samsung gained share while Chinese brands continued to make inroads in the region.

• In North America, smartphones once again took center stage, propelled by lower prices, key device launches, and enhanced channel marketing. In particular, Android-based devices extended their lead in the United States and took leadership in Canada thanks to Samsung, Motorola, HTC, and LG. Meanwhile, demand for feature phones continued to slide, but there still existed pockets of interest for voice-centric and quick-messaging devices. Still, as the region heads towards a smartphone-centric future, IDC expects feature phones to represent an increasingly smaller portion of the market.

• The Latin America market growth was driven by low-cost smartphones, specifically those with social networking features. Lower smartphone prices, including those of the Android variety, are driving smartphone penetration in several Latin American countries. Price is expected to be a point of differentiation – as well as applications and device features – between Android players in future.

Top Five Mobile Phone Vendors

Nokia’s hold on the top global mobile phone spot weakened last quarter as inventory buildups in traditional strongholds, namely China and Europe, led to sharp year-over-year shipment declines. Nokia’s global feature phone and smartphone businesses suffered a similar fate. One positive sign for Nokia last quarter were dual-SIM devices; the company shipped over 2.6 million of these in the second quarter. Over the long term, Nokia’s smartphone fortunes will be dictated by its ability to sell Windows Phone 7 smartphone devices, which are expected to hit the market this year. It is Nokia’s primary smartphone platform of the future. In the meantime, Nokia is trying to sustain shipment volume with low-cost mobile phones and devices powered by the aging Symbian smartphone platform.

Samsung posted double-digit growth from the same quarter a year ago, and just slightly slower growth than the overall pace of the market. Like other vendors it realized a decrease in demand for its feature phones, but made up the difference with continued success for its Android-based Galaxy smartphones. The difference between Samsung and market leader Nokia continued to shrink, with less than 20 million units separating the two vendors, mostly resulting from Nokia’s struggles in the market. Still, Samsung expects continued growth into the second half, which could put it in closer contention with Nokia.

LG Electronics held on to its number three position during the quarter, thanks in part to its Optimus smartphone sales worldwide. However, a combination of factors – including soft demand for its feature phones, slow pace of smartphone releases, and competitive pressures, led the company to downgrade its outlook for the year by 24%. Originally, LG had anticipated flat growth in 2011 from 2010 levels, even as it expected the overall market to increase by 8%. Should LG’s volumes decrease as much as it anticipates, other vendors may jockey for position ahead of LG.

Apple maintained its number four position overall but closed the gap on Top 5 competitors thanks to another record unit shipment quarter. The company easily posted the highest growth rate of the worldwide leaders despite the fact that its flagship iPhone 4 is now more than a year old. The triple-digit shipment volume growth allowed Apple to more than double its share when compared to the same quarter last year. Apple’s ability to bring its smartphone momentum to developing economies, where it’s less successful, will help dictate the company’s smartphone fortunes in future.

ZTE likewise improved volumes and picked up market share during the quarter, enough to maintain the number five position. Long known as a purveyor of simple, voice-centric mobile phones, ZTE has stepped up its smartphone game with the continued success of its Android-powered Blade and Racer smartphones while announcing Libra, Skate, and Amigo smartphones for release in the second half of this year. Feature phones continued to be popular for ZTE, with the release of its 547i, a social networking-centric device in Europe.

Top Five Mobile Phone Vendors, Shipments, and Market Share, Q2 2011 (Units in Millions)

Vendor	2Q11 Unit Shipments		2Q11 Market Share		2Q10 Unit Shipments		2Q10 Market Share		Year-Over-Year Change
Nokia	88.5	24.2%		111.1		33.8%		-20.3%
Samsung	70.2	19.2%		63.8		19.4%		10.0%
LG Electronics	24.8	6.8%		30.6		9.3%		-18.9%
Apple	20.3	5.6%		8.4		2.6%		141.8%
ZTE	16.6	4.5%		12.2		3.7%		36.0%
Others	145	39.7%		102.3		31.2%		41.7%
Total	365.4	100.0%		328.4		100.0%		11.3%

AT&T has dropped its requirement that all customers purchasing “quick messaging devices” — or QMDs for short –  subscribe to an unlimited texting plan. According to Fierce Wireless, AT&T implemented the rule in January 2010 before quietly discontinuing it sometime in February of this year. The unlimited texting plan was priced at $20 per month, and while it’s no longer mandatory, AT&T does recommend that customers purchasing a messaging feature phone continue to sign up for an unlimited plan. AT&T’s portfolio of QMDs includes the Samsung Strive, LG VU Plus, Pantech Impact, and Samsung Solstice II, among others. AT&T subscribers can also opt for a cheaper $10 monthly plan that provides just 1,000 text messages per month.

[Via Phone Scoop]

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Today, via two separate press releases, Verizon announced the addition of the LG Vortex – a full-touchscreen, Android 2.2 smartphone — and the LG Cosmos — a full-QWERTY messaging phone — to its handset lineup.

The Vortex will boast a 3.2-inch touchscreen display with haptic feedback, Wi-Fi, Bluetooth 2.1, 3.2 megapixel camera, micro-SD card slot (with support for up to a 32GB card), SWYPE keyboard, 3G hotspot capabilities, and Android 2.2; the Vortex will also be Binged-out. The handset will be available, starting November 18th, for $79.99 with a 2-year agreement after a $100 mail-in rebate.

The Cosmos will sport a 2.8-inch WQVGA touchscreen display, horizontal-slide-out QWERTY keypad, Bluetooth 2.1, micro-SD card slot (with support for up to a 16GB card, 1.3 megapixel camera, and the ability to fill three different home screens with widgets. The device will be available beginning on November 18th for $49.99 with a 2-year contract after a $50 mail-in rebate.

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Samsung announced Monday the addition of the Samsung Contour to MetroPCS’ lineup of affordable feature phones. While the Contour is short on bells and whistles, it will certainly be a great option for customers who make value a priority. MetroPCS offers contract-free unlimited plans for as low at $40 per month including taxes. Samsung’s Contour compliments the carrier’s affordable monthly plans nicely, featuring a clamshell form factor, a VGA camera, a basic Web browser and 3G connectivity. The Samsung Contour is available immediately online and in MetroPCS stores for $49. Hit the jump for the full press release.

Samsung Contour™ (SCH-r250) Available at MetroPCS
Colorful, slim clamshell design with access to mobile E-mail and Bluetooth® capabilities

The Samsung Contour™ (SCH-r250) features a colorful, slim, clamshell design that comes in bright red and is equipped with an integrated  VGA camera, convenient internet access through MetroWEB® and offers messaging options such as text messaging (SMS) and multiple messaging (MMS). The Contour comes equipped with Bluetooth® Wireless technology, making it ideal for hands-free calling and staying connected while on the go. Contour users can stay organized with the Iron Carousel feature, which offers access to one-touch messaging, one-touch calendar and one-touch speakerphone technology. Users can personalize their Contour with a variety of applications including access to unlimited e-mail, downloadable ringtones, wallpapers, games and other applications.

KEY FEATURES

•VGA Camera
•Colorful, Slim Clamshell Design
•Easy-to-Use Interface
•Icon Carousel, Featuring – One Touch Messaging, One Touch Calendar and One Touch Speakerphone
•Bluetooth® Wireless Technology
•Metro Applications, Including – MetroWEB® Internet Access, Metro 411 Directory Assistance, MetroBACKUP, mail@metro® Unlimited E-mail and MyMetro Account Manager
•Text Messaging (SMS), Multimedia Messaging (MMS)
•Speakerphone
•Voice Commands

SPECIFICATIONS

•CDMA 800MhMHz/PCS 1900 MHz, AWS Band 1700/2100 MHz
•Dimensions:  1.7”L x .54”W x 4.2”H
•Weight:  3.04 ounces
•Main Display Type(s) & Resolution: 2.0” QQVGA TFT   Sub Display :1.07” CSTN
•Talk Time: Up to 3.3 hours* and Standby: 200 hours*
•Memory (FLASH/RAM): 1G + 512

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Verizon Wireless today announced the upcoming availability of two new feature phones, the Pantech Crux and the LG Octane. The former, a full touchscreen offering from Pantech, features a 3-inch display with a virtual QWERTY keypad, a variety of widgets, mobile IM and email support, a 1GB microSD card with support for up to 32GB, integrated social networking features and a full HTML Web browser. The LG Octane sports a landscape-oriented clam shell design and features dual displays, a physical QWERTY keypad, a 3.2-megapixel camera, up to 16GB of microsSD storage, email support, Visual Voicemail and a full HTML Web browser. The Pantech Crux will cost $49.99 with a new 2-year agreement after a $50 mail-in rebate, and the LG Octane will be $99.99 on contract after a $50 mail-in rebate. Both devices will be available online and in stores starting tomorrow, October 28th.

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Today, AT&T introduced the Pantech Laser handset, a device the company is billing as the “thinnest full sliding keyboard phone” on the market. The handset, which measures 9.95 mm in thickness, will have a 3.1-inch AMOLED touchscreen display, full QWERTY keyboard, and 3 megapixel camera. The feature-phone quick-messaging device (sorry, no Android) will be available starting October 17 and will retail for $99.99 after a $50 mail-in rebate and 2-year agreement. Hit the jump for the full press release.

AT&T Introduces Thinnest Full Sliding Keyboard Phone From Pantech

Pantech Laser hits AT&T Stores Nationwide October 17.

DALLAS, Oct. 6 /PRNewswire/

Key Facts

• AT&T* announced today the latest addition to its portfolio of quick messaging phones – the Pantech Laser – will be available exclusively through AT&T beginning October 17.
• Pantech Laser is the thinnest, full sliding keyboard device (9.95mm) AT&T has ever offered.
• Pantech Laser will be available in AT&T company owned stores nationwide and online for $99.99 after $50 mail-in rebate (pay $149.99 and after mail-in rebate receive $50 AT&T Promotion Card. Two-year agreement and $20 a month messaging or combination of messaging/data plan required).

Customer Benefits

The Pantech Laser, an ultra-slim and stylish quick messaging phone that features a vibrant 3.1″ AMOLED touchscreen and a full sliding QWERTY keyboard, allows for access to email, social networking and messaging. From the touchscreen, users can activate Drawing Commander, a feature that allows for calls to be made, messages to be opened or favorite apps to be accessed by simply tracing a shape with a finger. Laser further prioritizes the personal experience by allowing voice memos to be recorded on the Voice Memo app and shared via text, or the 3MP camera to be used for updating social media statuses with pictures and videos. Pantech’s latest quick messaging phone proves that functionality doesn’t have to be sacrificed for a thin phone.

In addition, the Pantech Laser boasts:

• AT&T Address Book –syncs contacts to an online address book so customers can access and manage their mobile contacts from their handset — or their PC. Synchronization occurs automatically when any change is made, so contact information is always backed up.
• AT&T Navigator – offers turn-by-turn voice and onscreen driving directions, automatic rerouting, real-time traffic monitoring and more. AT&T Navigator is available for $9.99 per month, and new subscribers receive their first 30 days of their subscription for free.
• AT&T Social Net – provides easy access to all your social networking sites including Facebook, Twitter and MySpace in one easy-to-use interface.
• AT&T Mobile Share – helps customers quickly transfer photos and videos captured on their mobile phone to other destinations and allows customers to manage that content across the mobile and PC screens.

(1) Limited-time offer. Other conditions & restrictions apply. See contract & rate plan brochure for details. Subscriber must live & have a mailing addr. within AT&T’s owned wireless network coverage area. Up to $36 activ. fee applies. Equipment price & avail may vary by mrk & may not be available from independent retailers. Early Termination Fee: None if cancelled in the first 30 days, but up to $35 restocking fee may apply to equipment returns; thereafter up to $150. Some agents impose add’l fees. Sales tax calculated based on price of unactivated equipment.

(2) AT&T Promotion Card: Allow 60 days for fulfillment. Card may be used only in the U.S. is valid for 120 days after issuance date but is not redeemable for cash & cannot be used for cash withdrawal at ATMs or automated gasoline pumps. Card request must be postmarked by Nov. 6, 2010 & you must be a customer for 30 consecutive days to receive card.

(3) Messaging charges apply to voice memos sent via text.

(4) Mobile Share-Requires a data plan. Monthly Recurring Plan includes 50 transfers. The overage rate and Pay-per-use rate is35 cents for each transfer. You are charged for each transfer to or from your device. Transfers exceeding 2 MBs will be charged for each additional 2 MB increment or fraction thereof. Normal data charges apply when browsing your online locker or other sites from your Mobile device

(5) Pricing established by AT&T for AT&T-owned retail outlets.

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We’ve just been given word that AT&T will be launching the LG Encore in four days on September 5th. The Encore is a full touchscreen feature-phone that packs a 3-inch display, dual band HSDPA/UMTS, quad band GSM, 3 megapixel camera with video recording, micro-SD card slot, and aGPS. The device will run AT&T’s Social Net, Adress Book, and Navigator programs and will have up to three hours of talk time. Hit the jump to check out the full AT&T memo.

It looks like Skype and Verizon Wireless have inked another deal to bring the Skype mobile application to more Verizon devices. In a blog post today, Skype announced they are “expanding the Skype mobile application onto a variety of Multimedia 3G phones with an app based on the BREW platform, including the LG enV TOUCH, LG Chocolate Touch and Samsung Reality.” The post boasts: “The Skype mobile app for Verizon Wireless 3G Multimedia phones works the same way it does on the carrier’s smartphones, letting you make free calls to friends and family on Skype, great value calls to landlines and mobile phones overseas, and send IMs to people on Skype anywhere in the world.” If you’re interested in getting Skype, you can text SKYPE to 2255 or visit the Media Center on your VZW BREW device. We’ve got the full announcement all linked up for you.

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Not every phone can be a bleeding-edge 1 GHz smartphone, right? Earlier today, Verizon Wireless announced that it would add the Samsung Gusto to its feature phone lineup. The light-weight flip phone sports a 2-inch internal display, VGA camera, mobile web browser, and Bluetooth connectivity. The handset includes “lifestyle features” such as a driving mode (which increases call volume to compensate for road noise), voice commands, and VZ Navigator. The phone also has a neat feature that allows you to setup fake phone calls, as the press release explains: “Fake Call feature – lets customers set up a pseudo call with a timer to manage social situations.” You know… in case you have a social situation that needs managing. Personally, we think owning this phone is a social situation, but that’s just us. The Gusto will run you $19.99 after a $50 mail-in rebate.

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One of our friends over at Best Buy was kind enough to send us in a few shots of the new Samsung Intensity II, due out on Verizon Wireless… um, soon we would presume? The phone pictured is a display unit, but from what we’re told the full-QWERTY slider-phone will have a 2 megapixel camera, Bluetooth, and a $1.00 price tag from Best Buy on a 2-year contract. Of course, if you don’t want to be married to this phone for two years — and if you’re reading this there is a high likelihood mathematical certainty that you don’t — you can pick one up for $249.99 full retail. Not a bad looking little phone… for your younger siblings of course. We’ve got the larger images ready for your scrutiny after the break.

LG officially opened the doors to its online applications store on Thursday. The app store offers social networking, navigation, VoIP, and instant messaging applications for both feature phones and Windows OS phones. LG will expand its offerings to include an estimated 4,000 applications — including those for Android-powered smartphones – by the end of the year. Currently in beta, the app store launched with high profile titles like Spore, Worms 2010, Assassin’s Creed, and The Sims 3. It also includes an incentive program that awards you points for logging in and leaving reviews. The more points you earn, the more applications that are available for you to download. Available in 22 markets at launch, the app store will soon be available in 33 countries including the UK, Germany, France, Italy, and Spain.

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Yesterday, we mused about AT&T’s adjustment to their ETF pricing as reported by the Wall Street Journal. Late yesterday, AT&T’s PR department decided to put their own spin on the termination fee tweaks with an “Open Letter” to their customers. The open letter confirms that the new ETFs, now $325 for smartphones and $150 for feature phones, will depreciate monthly at a rate of $10 and $4 respectively. We’ve got the full letter queued up for you after the break. Let us know what you think.

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Motorola announced its Q1 2010 earnings and the communications hardware company exceeded analysts expectations. Twenty-Ten started off well for Motorola as the company posted a profit of $69 million or 3 cents per share which contrasts starkly with the $203 million loss or 10 cents per share posted in the same quarter last year. Net sales topped out at $5.04 billion, down 6% from the $5.37 billion posted in Q1 2009. Despite this slight slip, Motorola beat the Street as analysts were expecting 1-2 cents loss on $5.1 billion of sales. All this good news had a positive effect on Motorola’s stock which is currently trading at $7.20 per share, up 4% at the writing of this post. This is only part of the story, however, so hit the jump to see how the ever-important mobile division fared.

Motorola’s mobile division is still operating in the red but the outlook is positive. Mobile sales reached $1.6 billion, down 9% year over year and the division posted a loss of $192 million, a figure significantly less than the $545 million loss posted in Q1 2009. Motorola shipped 8.5 million units in Q1 2010, falling short of the 10 million that were expected. Smartphones were the bright point in an otherwise somber quarter. Of the 8.5 million phones that shipped, 2.3 million were smartphones, a figure that exceeded analyst’s expectations of 1.8 million.

Motorola expects the upcoming quarters to reflect this trend with its iDEN and feature phone sales remaining flat and its smartphone sales increasing both in the US and globally. The handset maker projects it can ship 12-14 million handsets per quarter by the end of the fiscal year with an increasing emphasis on smartphones. Motorola will remain in the feature phone business primarily due to demand in emerging markets, for brand extension, and to meet customer’s minimum portfolio requirements. Motorola intends to take no capital or inventory risk in this low-end market.

They plan to ship 20 total handsets by the end of the year and recognize that the smartphone is the key to its profitability in this highly competitive market. Motorola has limited interest in owning its own mobile OS and remains committed to Android, but that’s not exactly a shocker. The handset manufacturer is pleased with Google’s pace of innovation and believes the search giant has the infrastructure needed to keep the mobile platform fresh and competitive. In the end, this is good news for Android fans as we will see lots more Android handsets from Motorola in the future.

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Today, LG announced the GD510 “Pop”, a handset that attempts to build upon the LG Cookie’s success as an entry level touchscreen designed to appeal to the masses. LG sold 7 million Cookies worldwide to date, so it certainly seems to have found the right mix of features and pricing. The Pop will feature a 3-inch WQVGA touchscreen display, 8GB of internal storage, a 3 megapixel camera and a brushed aluminum case with a single multi-function button and a narrow 4.8mm bezel. Sleek and simple, the Pop will become available mid-October throughout Europe with pricing set by each individual market.

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