Worldwide mobile phone sales to end users totaled 455mn units in Q3’13, an increase of 5.7% from the same period last year. Sales of smartphones accounted for 55% of overall mobile phone sales in Q3’13, and reached their highest share to date.1
Worldwide smartphone sales to end users reached 250mn units, up 45.8% from Q3’12. Asia/Pacific led the growth in both the smartphone segment, with 77.3% increase, and the mobile phone segment, with 11.9% growth. Other regions to show an increase in the overall mobile phone market were Western Europe, which returned to growth for the first time, and the Americas.1
Sales of feature phones continued to decline and the decrease was more pronounced in markets where the average selling price (ASP) for feature phones was much closer to the ASP of affordable smartphones. In markets such as China and Latin America, demand for feature phones fell significantly as users rushed to replace their old models with smartphones. Global mobile phone sales are on pace to reach 1.81bn units in 2013, a 3.4% increase from 2012.2
Cisco reported third quarter revenue of US$12.1bn and net income of US$2.0bn or US$0.37 per share. Cisco completed its acquisition of Sourcefire, Inc., a cyber security solutions company, making Cisco a provider of one of the industry's most comprehensive advanced threat protection portfolios, as well as a broad set of enforcement and remediation options that are integrated, pervasive, continuous and open. Cisco also completed its acquisition of privately-held Composite Software, Inc. to expand its portfolio of Smart Services and extend its next-generation services platform by connecting data and infrastructure.3
Motorola Solutions, Inc. reported Q3’13 sales of US$2.1bn, down 2% from Q3’12. The decline was due to lower government segment sales (down 4% YoY) in North America and Asia Pacific. Enterprise segment sales grew 2% YoY. The company expanded operating margins, reduced costs and delivered 23% EPS growth sequentially. The operating earnings in Q3’13 were US$320mn or 15.2% of sales, compared to US$324mn in the third quarter last year. Earnings per share were US$1.16, compared to US$0.72 in Q3’12. The growth in EPS was due to lower incentive payments, structural cost improvements and US$96mn of tax benefits.
Nokia acquired Siemens’ stake in Nokia Siemens Network (NSN) for €1.7bn this quarter and also confirmed the sale of its handset business to Microsoft. Nokia Lumia Q3’13 volumes increased 19% QoQ to 8.8mn units, reflecting a recently broadened Lumia product line and strong customer demand, particularly for the Lumia 520. Third quarter mobile phone unit sales increased 4% QoQ to 55 million units, demonstrating solid performance in several recently launched devices, particularly the Nokia 105, the Asha 501, and the Nokia 210. Nokia Group net sales in Q3’13 were €5.7bn, flat QoQ led by NSN net sale decrease of 7% QoQ to €2.6bn. HERE (formerly Nokia Ovi Maps) Q3 net sales decreased 9% QoQ to €0.2bn, due to lower seasonal sales.
Ericsson’s sales of SEK53.0bn were down 3% YoY. Lower revenue resulted from the adverse impact of foreign exchange, lower demand from Japan and the slow down of two major broadband coverage projects in North America. Operating income including joint ventures was SEK4.2bn with an operating margin of 8.0%. Operating income and operating margin were positively impacted by improved gross margin and no negative financial impact from ST-Ericsson. Net income was SEK 3.0bn. Ericsson closed the acquisition of Mediaroom, which places Ericsson as the world’s largest Internet Protocol TV player, based on market share.