As Gartner reports, the worldwide sales of mobile phones was 419 million units in the first three months of this year. This means a 2 per cent drop, compared to the previous quarter.
The agency points out that the last time the mobile phone global market declined was in the second quarter of 2009. Samsung still had a good quarter with 86.6 million devices sold, surpassing Nokia.
Anshul Gupta, principal research analyst at Gartner explains the cause of the shrunken sales. "Global sales of mobile devices declined more than expected due to a slowdown in demand from the Asia/Pacific region."
Usually the first quarter in Asia is the strongest sales season, due to the Chinese New Year. This time however, the main manufacturers have failed to introduce new models, meaning there's not enough to drive the sales.
As a result, the customers have preferred to delay their purchases. For the remainder of the year, predictions are low. There are, however, a few measures that can be taken to address the situation.
The manufacturers and the retailers should lower the prices. Huawei, ZTE, Lenovo, Yulong and TCL Communication are expected to continue the rollout of 3G enabled handsets, which will drive the demand in China.