Traditional handset sales are on the rise, but front runner Nokia has a rallying Motorola and Samsung eating away at its lead.
Sales of mobile phones topped 153 million for the first quarter of 2004, setting a new Quarter 1 record. That according to a new report from market research firm Gartner. The Asia/Pacific market in particular showed considerable growth, and the top five handset makers all saw shipments rise overall.
Nokia retained its number one position world-wide by a healthy margin, even though its marketshare slipped to 28.9%, down from 34.6% a year ago, due mostly to weak sales in Europe and a weak low-end product line. Motorola, meanwhile, has bounced back in the past year to maintain its number two position with 16.4% of the market, up from 14.7% at the same time last year. Number three manufacturer Samsung saw its fortunes rise to 12.5% of the market, in a large part by its decision to add more low-cost, low-specification handsets to its lineup. Siemens, Sony Ericsson, and LG Electronics round out the top six.
Mobile sales in North America grew a dramatic 30% in the first quarter, which Gartner attributes to healthy competition between a variety of carriers. Color phones and camera phones appeared to be the most popular. Sales were strong in the Asia/Pacific market as well, and major Western handset makers also made stronger pushes into the lucrative Chinese market as sales were bouyed by the Chinese New Year. Japanese callers alone bought over 11 million phones.
According to Gartner, a large number of buyers are existing mobile phone users finally deciding to upgrade. According to Ben Wood, principle analyst for Gartner, "Based on first quarter results, we believe
worldwide mobile phone sales will exceed 600 million units in 2004."
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