Canadian Mobile Phone Market Rebounded in Q2 Shipments of mobile devices in Canada approaching growth territory again, IDC�s Mobile Phone Tracker reveals

August 10, 2009

TORONTO, Canada, August 10, 2009 – August 10, 2009. The Canadian mobile phone market shrunk approximately 1% in the second quarter, according to IDC Canada�s preliminary second quarter Mobile Phone Tracker results, a dramatic sequential improvement which suggests the cell phone industry is on the mend.

Handset makers shipped 2.36-million units to the channel in Canada, just shy of the 2.4-millon units sold to wireless service providers and other channel partners in the same quarter last year.

The closely watched converged mobile device (also known as smartphone) segment grew 49% in the April to June timeframe when compared to the same quarter a year ago.

Kevin Restivo, lead analyst for IDC�s Mobile Phone Tracker in Canada, attributed the smaller market retrenchment last quarter to a greater number of new product introductions, a stabilizing economy and the rebuilding of channel inventory on the part of partners last quarter, which helped drive shipment volumes close to second-quarter levels in 2008.

"The market is slowly recovering from a rocky start," said Restivo. �The rebound last quarter can partly be attributed to the growing popularity of QWERTY slider messaging phones and smartphones with consumers. These form factors helped the market improve upon the disastrous first quarter.�

The Canadian cell phone market got off to a rocky start in the first quarter as shipments to the channel declined approximately 23% when compared to the same prior-year period. It was the largest quarter-over-quarter cell phone shipment decline in 5 years, IDC Canada reported in June.

For the year, IDC still expects Canadian mobile phone manufacturers to ship approximately 4% fewer devices to the channel versus 2008 due largely to lower demand caused by the economic recession.

IDC distinguishes the Mobile Phone Market in two distinct ways:

Mobile Phones � These small, battery-powered, voice-centric devices utilize operator-provided cellular/PCS air interfaces for voice communication. They are designed primarily, in both form factor and feature set, for a compelling mobile telephony experience, but may also include text-messaging capability. Mobile phones may include a headset jack for hands-free operation as well as a variety of features, such as personal information management, multimedia, games, or office applications.

Converged Mobile Devices � A subset of mobile phones, converged mobile devices feature a high-level operating system that enable the device to run third-party applications in addition to voice telephony. Examples of high-level operating systems include Android, BlackBerry, Linux, Mac OS X, Palm, Symbian, and Windows Mobile. Converged mobile devices share many features with traditional mobile phones, including personal information management, multimedia, games, and office applications, but the presence of a high-level operating system differentiates these devices from all others.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

Contact

For more information please contact:

Tatiana Abramova
Marketing & Sales Operations Specialist
Phone: (416) 673-2299
E-mail: tabramova@idccanada.com