Worldwide mobile phone market posts healthy gains

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Sep. 03, 2004

Worldwide mobile phone sales exceeded 156.4 million units in the second quarter of 2004, a 35 percent increase over the second quarter of 2003, according to a report released this week by Gartner Inc. The market research firm says all regions experienced "healthy sales" of mobile phones in the second quarter, and that more than 300 million mobile phones shipped in the first half of 2004.

Looking toward the balance of the year, Gartner projected total worldwide 2004 sales of around 620 million units, but noted that if the current momentum is maintained the number could grow to 650 million. Additionally, Gartner analysts cautioned that shipments beyond 650 million units this year might result in excess inventory that could harm sales in the first half of 2005.

On a regional basis, Gartner says the Western European market is being driven by consumers who got their first mobile phones in 2000 and 2001, and now they're upgrading to smaller color-screen phones with built-in cameras that have become available at much lower prices. Brazil continued to be the driving force in Latin America, although Mexico also contributed strong sales. Other countries, such as Argentina, are showing signs of recovery from the economic downturn. In North America, replacement sales were high as operators subsidized enhanced handsets, and consumers were willing to upgrade to devices with more features, especially camera phones.

The full Gartner quarterly report, "Market Share: Mobile Terminals Worldwide, 2Q04," is available for purchase on the company's web site.

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