Mobile phone sales slide in 2009

25 Feb 2010

Worldwide mobile phone sales fell 0.9% last year to 1.2bn units, but the market recovered in the fourth quarter thanks to the success of smartphones, the Gartner research group said.

Sales in the final three months of the year rose 8.3% to 340 million units compared to fourth quarter 2008.

"The mobile devices market finished the year on a very positive note, driven by growth in smartphones and low-end devices," Gartner research director Carolina Milanesi said in a statement. The 2009 yearly decline was nonetheless sharper than a December prediction from Gartner for a fall of 0.7%.

"We can expect 2010 to retain a strong focus around operating systems, services and applications while hardware takes a back seat," Milanesi said.

"Sales will return to low double-digit growth, but competition will continue to put a strain on vendors' margins."

Sales of smartphones, which offer users a variety of multimedia options, jumped 41.1% to 53.8 million units in the fourth quarter and were up 23.8% to 172.4 million devices for the full year.

The Canadian group RIM, which markets the Blackberry, controlled 19.9% of the smartphone market while Apple, with its iPhone, had a market share of 14.4%.

Overall, three of the five leading mobile phone makers, Nokia, Motorola and Sony Ericsson, suffered a sales decline last year.

Market share fell to 36.4% from 38.6% at Nokia, to 4.8% from 8.7% at Motorola and to 4.5% from 7.6% at Sony Ericsson.

The world's number two mobile phone company, Samsung, saw its market share increase to 19.5% from 16.3% in 2008.

At LG, also South Korean, market share rose to 10.1% from 8.4%.

Source: AFP

Source: I-Net Bridge

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