Nokia, the world’s largest supplier of mobile phones, this week said that it shipped more than 100 million mobile phones in the second quarter, which is a very significant seasonal gain and which the industry experts believe to be a direct result of Motorola’s weakness during the quarter.

“In the second quarter 2007, the total mobile device volume achieved by our Mobile Phones, Multimedia and Enterprise Solutions business groups reached 100.8 million units, representing 29% year on year growth and an 11% sequential increase,” a statement by Nokia claims.

The company itself estimates that its market share during the quarter was 38%, which is the highest market share that the company has had in the most recent quarters. However, IDC market research firm is a little more skeptic concerning Nokia’s market share and believes that the company commands 37%. Nevertheless, Nokia’s shipments equal more than combined sales of Samsung, Motorola and Sony Ericsson.

“Nokia once again demonstrated its market leadership during the second quarter, with total shipments equaling more than those of the next three vendors combined. Much of Nokia’s growth was attributed to its shipment growth within Europe and Asia, but still showed some signs of struggle in North America. At the same time, Nokia enjoyed leadership within the converged mobile device space, with a record shipment of 13.9 million units shipped, thanks in large part to its heavily promoted N-series and E-series devices,” an analysis from IDC market research firm claims.

The main reason why Nokia and the rest could report substantial increases in their shipments in Q2 2007 is Motorola, who was the only vendor to post a year-on-year decrease among the leading suppliers, and by the end of the second quarter, the company slipped to third place, citing ongoing shipment challenges in Asia, the Middle East, Africa, and to lesser extent, Europe. Even though currently the gap between Motorola and Samsung is only 1.9 million units, it may extend going forward due to reformation of Motorola.

Motorola is currently seeking to reverse its fortunes by installing a new management team, refreshing its product portfolio, lowering inventory and reducing its workforce, but expects to face more challenges before recovering.

“While the shift in the industry vendor rankings is certainly of importance, perhaps, the big story of the quarter was Apple’s debut as a mobile phone vendor with its launch of the iPhone. Even though limited in the number of units shipped, the iPhone is likely to have a disproportionately large impact on the industry,” said Shiv K. Bakhshi, director of worldwide mobile device research at IDC.

The analyst believes that the iPhone managed to accomplish certain goals even being released in low quantities.

“For one, it has pushed the envelope on industrial design and user interfaces for all vendors. For another, it could forever alter the structural relationship between device vendors and mobile operators who have traditionally controlled the mobile environment, especially in the U.S. Equally important, the unparalleled hype surrounding the iPhone could lift mobile devices out of a utilitarian frame of reference and place them squarely in the fashion frame of reference, potentially raising ASPs for the entire industry,” Mr. Bakhshi explained.