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Technical Insight

Mobile phone sales exceed 96 million units (Market News)

According to Gartner Dataquest, mobile handset sales are on track for 500 million units by the end of 2001, with 96 million units sold in the first quarter (see ). Analysts have warned that changes in handset market dynamics will make market success more difficult this year. The market for new subscribers is decreasing and the replacement handset market is becoming the largest segment of total sales. Pessimism over the prospects for next-generation mobile terminals and services is also likely to make conditions difficult. The first quarter of 2001 was an unusual one for the market as an unprecedented volume of fourth quarter 2000 handsets remained unsold. Gartner Dataquest estimate that the inventory overhang may have been as high as 3035 million units. Nokia continued to gain market share, passing 35% for the first time during the first quarter of 2001. During the same period in 2000, Nokia held 27.9% of the market. Siemens moved ahead of Ericsson in the first quarter of 2001 and now occupy the number three position. See "www.gartner.com" for further information.
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