Boston, MA - 2 August 2007 - According to the latest research from Strategy Analytics, global mobile phone shipments grew a modest 11 percent year-over-year, to reach 258 million units in Q2 2007. Samsung overtook Motorola for the first time, to become the world's second largest handset vendor.

Neil Mawston, Associate Director at Strategy Analytics said, "Total global cell phone shipments have continued to slow down this year, but Samsung is speeding up. 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."

Bonny Joy, Analyst at Strategy Analytics, added, "The second quarter of 2007 was not just about Samsung. Nokia hit a record 39 percent share, as it remained dominant in emerging markets. We expect Nokia to surpass 40 percent in the second half. Meanwhile, Sony Ericsson captured 10 percent of the global market, to register its best ever performance since the merger in 2001. Demand for its J, K and W Series phones remains high."

Other findings from Strategy Analytics' Q2 2007 Global Handset Market Share Update report include:

• Apple shipped 0.3 million iPhone units worldwide, for a tiny 0.1 percent share. We predict this ratio will approach 1 percent by the end of 2007;
• LG achieved an 11 percent operating margin. This was its highest level for 5 years.

Exhibit 1: Global Mobile Phone Shipments and Market Share -- Top 5 Vendors