Global Mobile Phone Sales Stalled In 2009 Says Gartner

A new report by Gartner has predicted that mobile phone sales, which have seen a global decline of 0.67 per cent according to the report, will make a comeback in the 2010 amidst shorter model replacement cycles and growing popularity of app stores.

The report, which revealed that while there has been a fall in the number of mobile phones sold in 2009, the percentage decline in sales was lower than the predicted 3.7 per cent due to a major boost in mobile sales in Western Europe during the third quarter and the rise of grey market sales in parts of Asia, Latin America and Eastern Europe.

Carolina Milanesi, Gartner research director, commented that emerging grey markets in Russia and India along with the others around the world were responsible for the sale of around 250 million handsets in 2009.

Although she added that Gartner expects the grey market sales to dwindle in 2010 as countries all over the world were adopting a stricter policy towards phones with no IMEI number.

The report has also predicted that smartphone sales will rise in 2010 as their average price will drop by 3 percent and shorter accounts will be available due to rise in demand. In addition smartphones are expected to count for almost 19 percent of total mobile sales in 2010.

Our Comments

We are not surprise that the mobile phones are still going strong simply because prices have gone down significantly except for the Apple iPhone. It is likely that the average selling price of handset has suffered a downward trend as manufacturers look forward to reduce stocks of "old" handsets faster to space for new ones.

Related Links

Mobile Handset Sales Forecast Improves For 2009

(Information Week)

Mobile device sales to bounce back in 2010

(V3)

‘Grey market’ sales keeping the mobile device market afloat

(The Independent)

Smartphone Sales Increase Disappoints, Says Gartner

(PC World)