Handset makers will continue to experience slow growth, according to a new report from Boston-based research firm Strategy Analytics.

The new study, "Global Handset Market: Q3 2002 Market Update," said that despite stable profits for the major brand players, they will be plagued by slower than expected shipment and revenue growth. LG Electronics and Samsung broke the trend, growing shipments by 40 percent and 60 percent, respectively.

"It is a positive sign for the industry to see vendors remaining profitable in challenging market conditions," said Chris Ambrosio, an analyst with the firm. "Motorola even managed to turn its highest operating margin since 1997. The last several quarters have been highlighted by vendor profit maintenance amid lower than expected volumes. This quarter reaffirms our belief that we are at the bottom of a trough waiting for the eventual upturn in demand." The rep

ort also found that Siemens maintained handset profitability on shipments of 7.8 million units, up 13 percent from the third quarter of last year.