Samsung No. 2 In Worldwide Cellular Race

BOSTON — Samsung became the world's second largest supplier of cellular phones in unit shipments in the second quarter, overtaking Motorola, Strategy Analytics said.

The occasion marked the first time that Samsung took second place, the research company said.

During the second quarter, global mobile phone shipments grew at only 11 percent year-over-year to reach 258 million units, Strategy Analytics added.

"Total global cellphone shipments have continued to slow down this year, but Samsung is speeding up," said Neil Mawston, associate director of Strategy Analytics said. "A combination of aggressive marketing and an attractive 3G device portfolio has driven Samsung into second position for the first time ever. Its 48 percent annual growth has come partly at the expense of Motorola, whose lackluster product portfolio across all tiers urgently needs refreshing."

Also during the second quarter, Nokia hit a record 39 percent share because "it remained dominant in emerging markets," said analyst Bonny Joy. She expects Nokia to exceed 40 percent share in the second half.

Meantime, Sony Ericsson captured 10 percent of global market share in the second quarter to register its best ever performance since the merger of the Sony and Ericsson handset groups in 2001, she said.

In other findings from Strategy Analytics's Q2 market share report, the company said Apple shipped 0.3 million iPhone units worldwide for a tiny 0.1 percent market share. The research company expects Apple's share to hit 1 percent by the end of 2007.