Gartner Says Q2 Handset Sales Up 12 Percent
By Carlo Longino, Tue Sep 02 16:15:00 GMT 2003

Analyst firm Gartner released their second-quarter handset sales figures today, saying nearly 115 million devices were sold worldwide, and showing little change in the ranking of the top six manufacturers but some interesting movement in market share.

The company's figures showed total sales were up more than 10 percent from last year's second quarter, and showed a 2 percent sequential increase from the first quarter. They also showed that there might be some life left in Sony Ericsson yet, as strong sales of its T610 in Western Europe and a solid performance in Japan boosted its numbers, while the SARS epidemic in the Asia/Pacific region hit number-two Motorola hard. Nokia's market share continued to grow as the company had success in the CDMA market and in several emerging countries.

Gartner analysts say the handset market is clearly splitting in two, with mature markets, like North America and Western Europe, being driven by replacement sales, and emerging markets like Africa, parts of Eastern Europe, and China, where new sales are the key to growth.

They also see a significant correction coming in the Chinese market, where sales to vendors outpaced end-user sales by 40 percent. They see this manifesting itself through local manufacturer consolidation and contraction.