+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
 
News Article

Current handset boom could dent 2005 sales

Market research firm Gartner warns that if mobile handset sales exceed 650 million this year, it could have a damaging effect on the market in 2005.

Sales of mobile phone handsets are continuing to soar, but the excess growth seen so far this year may produce a hangover at the beginning of next year.

The warning came from US market research firm Gartner as it reported 35% year-on-year growth in the handset market. Around half of the high-brightness LEDs produced in the world end up in phone handsets, as do an even higher proportion of GaAs-based power amplifier devices.

Gartner cited "spectacular" growth in emerging markets, particularly Latin America, as phone sales hit 156.4 million in the second quarter of the year.

Consumers upgrading to camera phones spurred growth in Western Europe and North America, while sales in the Asia/Pacific region sales dropped slightly on the previous quarter as the Chinese government tried to reign in the country s rampant economic growth.

With over 300 million units sold in the first half of 2004, Gartner projects full-year sales to be around 620 million units. But it warned that there could be trouble ahead if the current momentum is maintained and unit sales reach 650 million.

"If mobile phone sales exceed 650 million units this year, it could result in excess inventory that could harm sales in the first half of 2005," said Gartner.

In another recent survey of the same market, Strategy Analytics said it believed that handset sales would reach 670 million this year (see related story).

Nokia of Finland remains the market leader, with a market share of 29.7% - up slightly on the first quarter of the year thanks to heavy discounting, but down from 35.6% one year ago.

US-based Motorola s recovery saw its market share increase from last year, although it is still being caught by Korea s Samsung, whose market share is now 12.1%.

×
Search the news archive

To close this popup you can press escape or click the close icon.
×
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • View all news 22645 more articles
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: