Smartphone Sales Up 12% In Q3

Global mobile phone sales reached 308.9 million units in the third quarter of 2009, a slight increase of 0.1 percent from the third quarter of 2008, according to a new report from Gartner.

Smartphone sales showed solid growth with more than 41 million units sold for a 12.8 percent increase from the same period last year.

"The third quarter of 2009 saw the announcement of many new mobile devices, including several Android smartphones ready for the holiday season in the fourth quarter, but hardware commoditisation and the growth in open platforms will make it harder for them to stand out," said Carolina Milanesi, research director at Gartner.

"Many devices will reach the market in time for Christmas, and mobile carriers will run incentives for consumers during the holidays. We expect sales of mobile devices in the fourth quarter of 2009 to show year-over-year growth," said Ms Milanesi.

"As many vendors and industry watchers call for a decrease in sales into the channel, our sell through data is showing that 2009 performance will be flat rather than down over 2008."

Nokia led the mobile market in Q3 with 36.7 percent of the share, followed by Samsung at 19.6 percent and LG with 10.3 percent market share.

Nokia also ranked at the top in smartphone sales with 39.3 percent of the market, followed by Blackberry maker Research in Motion with 20.8 percent and Apple with 17.1 percent.

"Smartphones continued to represent the fastest-growing segment of the mobile-devices market and we remain confident about the potential for smartphones in the fourth quarter of 2009 and in 2010," said Ms Milanesi.
 

 

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Smartphone Sales Up 27%

Global mobile phone sales reached 286.1 million units in the second quarter of 2009, a 6.1 percent decrease from the second quarter of 2008, according to a new report from Gartner.

Smartphone sales were a bright spot for the industry, surpassing 40 million units, a 27 percent increase from the same period last year, representing the fastest growing segment of the mobile devices market.

"Despite the challenging market, some devices sold well as consumers who would usually have purchased standard midrange devices either cut back to less expensive handsets or moved up the range to get more features for their money," said Carolina Milanesi, research director at Gartner.

"Touchscreen and qwerty devices remained a major driver for replacement sales and benefited manufacturers with strong, touch-focused midtier devices. However, the decline in average selling price (ASP) accelerated in the first half of the year and particularly affected manufacturers that focus on midtier and low-end devices, where margins are already slim."

Nokia landed in the stop spot, but its portfolio remained heavily skewed toward low-end devices. Its N97 smartphone has sold 500,000 since launching in June compared to Apple's iPhone 3G S, which sold 1 million units in its first weekend.

"The right high-end product and an increased focus on services and content are vital for Nokia if it wants to both revamp its brand and please investors with a more promising outlook in ASPs and margins," said Ms Milanesi.

Samsung and LG both had very a very solid second quarter with sales of 55 million units and 30.5 million units respectively. Samsung's touchscreen devices, qwerty phones and smartphones drove sales in mature markets, and Gartner forecasts it will continue to gain market share in the second half of 2009 to close the gap with Nokia.

Apple's entry into a larger number of countries in the past year has helped it boost sales, along with recent price adjustments on the 8GB 3G iPhone. Sales of 5.4 million units in the second quarter indicated a 509 percent growth in shipments and helped Apple remain in the No.3 position in the smartphone market.

"Smartphone sales were strong during the second quarter of 2009, with sales of 40.9 million units in line with Gartner's forecast of 27 per cent year-on-year sales growth for 2009," said Ms Milanesi.

"Given the higher margins, smartphones offer the biggest opportunity for manufacturers. It is the fastest-growing market segment and the most resistant to declining ASPs."