July 31, 2003 4:46 PM PDT

New gizmos driving cell phone sales

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New features keep luring consumers to upgrade their cell phones, according to a research report released Thursday.

Worldwide handset shipments in the second quarter grew 19.2 percent, to 118.3 million units, compared with the same period a year ago, as phone makers added features such as built-in cameras and color displays, according to the IDC report.

"This sector remains hot, because the market is penetrating new regions, and new technologies are driving upgrade sales," said Alex Slawsby, an IDC analyst.

Cell phone owners are upgrading their phones every 18 to 26 months, Slawsby added.

During the quarter, more than 118 million phones were shipped. Almost 35 percent, or 40.9 million units, were from Nokia. Motorola was second, with 13.4 percent, or 15.8 million units. Samsung ranked third, with 12 million units, which accounted for 10.1 percent of the market. Siemens was No. 4, and Sony Ericsson was No. 5.

Of the overall handset shipments, about 2 million units, or 1.7 percent of the phone market, were smart phones, or phones that can transmit voice or data over cellular networks and synchronize contact information with a server or PC. Nokia was the market share leader, with 1.2 million units shipped. Sony Ericsson was in second place, with 200,000 units shipped, in the second quarter.

 

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