Smartphone shipments log double-digit growth in 2010

Global mobile phone sales rose by a record 17.9 per cent in the last quarter of 2010 on the back of soaring smartphone shipments, and growth is predicted to continue until 2014, according to the latest figures from IDC.

A total of 1.39 billion devices were shipped last year, an increase of 18.5 per cent year on year and the largest annual growth rate since 2006, IDC's Worldwide Mobile Phone Tracker revealed.

The strong quarterly and annual growth was down to a recovering economy and the wide availability of affordable smartphones, the analyst firm noted.

Smartphone sales in western Europe were strong as operators promoted the devices over traditional handsets. The Apple iPhone 4, HTC Desire, Nokia N8, Samsung Galaxy S and Blackberry 8520 were the region's top sellers, while feature phones experienced their sharpest ever decline.

Nokia was named as the top vendor, even though the Finnish manufacturer saw operating profit and sales slip in the fourth quarter. Samsung, LG, ZTE and Apple rounded off IDC's top five.

Samsung reached a milestone in the fourth quarter by pushing past the 80 million unit threshold for the first time. The Galaxy S was the main driver, selling nearly 10 million units worldwide over the year.

IDC praised LG's smartphone strategy, noting that the firm sold one million units of the Optimus One in its first month and crossed the 30 million mark in the quarter.

ZTE burst into IDC's top five for the first time as the firm's shipments spread from its home country of China to Africa, Latin American, western Europe and the US. IDC attributed this growth to ZTE's rapidly expanding smartphone line, which includes the Blade and Racer Android ranges.

Apple experienced a record quarter with the iPhone selling well in Europe and the US, but slipped to fifth position in the face of increasing competition.

Motorola, RIM and Sony Ericsson, meanwhile, remain within striking distance of the top five, IDC said.

The mobile phone market has the wind at its back, as consumers are eager to replace older devices, explained Kevin Restivo, senior research analyst with IDC's Worldwide Mobile Phone Tracker.

"Feature phone users looking to do more with their devices will flock to smartphones in the years to come," he said. "This trend will help drive the smartphone sub-market to grow 43.7 per cent year over year in 2011."