After an extended dry patch, Samsung Electronics Co. Ltd. (KSX: 5930) has taken the lead in handset sales to the Israeli cell phone market. Figures published by Samsung Israel reveal that the company sold 280,000 out of the one million handsets sold in the first half of 2008.
Samsung had a 28% market share in the first half of 2008, more than that of its main competitors (Nokia (NYSE; LSE; HEX: NOK), Motorola Corp. (NYSE: MOT), and Sony Ericsson). The figures are based on sales to end-users by Israel's three main mobile phone companies, Pele-Phone Communications Ltd., Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), and Orange Israel franchisee Partner Communications (Nasdaq: PTNR; TASE: PTNR.
The figures show a significant fall in sales by Motorola, which dipped to 21% from 25.8% in 2007, when it was also the market leader. One of the reasons for Motorola's loss of market share is its weak presence in the Orange catalogue, following a dispute between the two companies. Nokia came second with a 27% market share, compared with 25.5% last year. Nokia's results are exceptionally strong, given that it sells its handsets only to Cellcom and Orange.
Samsung recently opened a local office in Israel, in a format similar to that of LG Electronics Co. Ltd. (KSX: 66570), which opened its own office here last year. Samsung is represented in Israel by Suny Electronics (TASE: SUNY), which will now report to the newly-opened Samsung branch.
Samsung Israel cellular division manager Eliran Milo said, "Samsung's global strategy aims to achieve leadership in cellular technology. Samsung intends to reach this by, among other things, providing a better response to local needs in every country it operates in. As part of this trend, Samsung has been continuously strengthening its presence in Israel and the manner in which it meets the market's needs."
Asked about the potential entry by Nokia and Sony Ericsson to Pele-Phone, Milo replied, "Samsung is ready for this change. It will represent an important change for us in 2009, and we will do everything we can to ensure we don't lose market share."
Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2008
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