Record Sales of Cell Phones in Q1 2005

Mobile phones saw record sales through the first three months of this year, with over 180 million phones sold, an increase of 17 percent over last year. However, the three top phone manufacturers are gaining ground on the rest of the industry, controlling 60 percent versus 57.7 percent last year.

Nokia continued to hold onto the top spot, with 30.4 percent of the market, up 1.6 percent, according to research firm Gartner. One out of every ten phones sold last year was in China, where the company has recently begun to strengthen supply lines and market itself more aggressively in the country.

Motorola, which once had controlled most of the cell phone industry in its infancy, came in second with 16.8 percent versus 16.3 a year earlier. Bad business decisions cost the company its massive lead, and up until two years ago Motorola seen a rapid decline in its market share.

However, with a new CEO and a more attractive phone lineup for consumers -- especially the younger generation -- the company has reversed its bad fortunes.

Rounding out the top four mobile manufacturers was Samsung with 13.3 percent and LG, who predominately produces CDMA-based phones at 6.2 percent.

Siemens saw the biggest move of any company, losing 2.5 percent to sit at 5.5 percent for the quarter. The company has had its share of problems, including a lack of support from carriers. Siemens also warned last year that some of its phones had a defect that could cause hearing loss in certain circumstances by users.

Sony Ericsson remained virtually unchanged, down a tenth of a point to 5.5 percent this quarter.