Samsung Overtakes Motorola In the U.S.
By SARA SILVER
Samsung Electronics Co. overtook Motorola Inc. as the leading vendor of handsets in the U.S. for the first time in the third quarter, according to data from Strategy Analytics Inc.
The South Korean company reached the milestone -- with 22.4% of the market compared with Motorola's 21.1% -- by offering carriers a full portfolio of devices, from high-end products such as the touch-screen Instinct to lower-end phones given free to customers who sign up with a particular carrier.
Motorola has struggled to produce do-everything phones for the high end of the market and to cut costs to stay competitive at the low end, as its midrange Razr loses steam.
"Motorola has lost half of its share since the height of the Razr two years ago, whereas Samsung gained traction with its broad portfolio across all major U.S. carriers," said Bonny Joy, senior telecom analyst at the Newton, Mass., research firm. "North America has emerged as the key battleground for smartphones, and without them you can't succeed here."
"We know the numbers are very close, and North America continues to be a priority for Motorola," said a Motorola spokeswoman.
The market-share shift comes during the run-up to the all-important holiday season, in which BlackBerry maker Research in Motion Ltd. is defending its lead in the highest end of the U.S. market, with 10.2% compared with 5.7% for Apple Inc's iPhone. Globally, iPhone 3G shipments allowed Apple to capture 6.9% of the world market in the third quarter, eclipsing RIM with 6%, according to Strategy Analytics.
Motorola's declining share ratchets up the pressure on the Schaumburg, Ill., equipment maker, which has dominated the U.S. market since it pioneered the cellphone in 1983. Its decision to halt the rollout of many products based on its own software platforms means its share is likely to shrivel through the end of next year, when it plans to release new devices based on software from Google Inc. and Microsoft Corp.
That puts LG Electronics Co. of Korea, with a 20.5% share, within striking distance of Motorola. The world's largest cellphone maker, Nokia Corp., which this year pushed to raise its U.S. sales, posted an 8.4% share, less than 10.8% a year ago.
Strategy Analytics said overall handset shipments increased 6% from the year-earlier quarter, despite the global financial crisis.
Write to Sara Silver at sara.silver@wsj.com
