MOTOROLA has increased its share of the mobile phone handset market, new figures show.

Research for the first quarter of 2004 revealed that while one out of four phones sold in the world is made by Nokia, Motorola, in second place, increased its market share to 16.4 per cent from 14.7 per cent at the same time last year.

About 1,200 people are employed at Motorola's Swindon offices in Groundwell developing mobile phone technology.

Nokia was reported as falling from 34.6 per cent last year to 28.9 per cent in the first quarter of this year.

Overall, worldwide mobile phone sales were up 34 per cent to 153 million handsets.

Market analyst Ben Wood of research group Gartner, which compiled the findings, said Motorola had to maintain its strong performance.

He said: "Given Nokia's price cuts and more flexible approach to working with operators, Motorola can't afford to be late with new products."

Motorola declined to comment on the findings.