Global Mobile Phone Sales Hit 294.3 Million In Q1; Motorola And Western Europe See WeaknessWorldwide sales of mobile phones reached 294.3 million in the first quarter of 2008, a 13.6 percent increase over the first quarter of 2007, Gartner reported today, but the news wasn’t good across the board. Phone sales in Western Europe decreased 16.4 percent compared to a year ago, the first decrease since Gartner started tracking the market seven years ago; Motorola was the only handset maker to see sales decrease year over year; and Sony Ericsson lost its position as the fourth-largest handset maker to South Korean LG.
Here’s some key findings from the report:
In first place, Nokia sold 115.2 million mobile phones Q1, increasing its marketshare to 39.1 percent. Its sales were helped by a broad portfolio of phones that appeals to both emerging and mature markets. But competition is increasing, Gartner warned, and said Nokia must continue to innovate and improve usability and design.
In second place, Samsung sold 42.4 million units during the quarter, increasing its marketshare to 14.4 percent from 12.4 percent in the year-ago period. Gartner said Samsung is reacting quickly to the focus on touch-screen devices, but that it will need to diversify its designs and strengthen its lower-end portfolio to increase sales in emerging markets.
In third place, Motorola continued to show problems with sales falling to 29.8 million handsets in Q1, representing a 37 percent drop compared to the year-ago period. Although it introduced new models, Gartner said its portfolio is simply not competitive and has little chance of winning back its its No. 2 position, and should even watch out for LG and Sony Ericsson.
In Q1, LG sold 23.6 million phones, claiming a 8 percent marketshare to overtake Sony Ericsson’s fourth-place position. LG focused on touch-screen devices, but Gartner warns that the vendor needs a stronger smartphone portfolio, as consumers and operators have started to place more emphasis on this market segment.
In fifth place, Sony Ericsson had a rough first quarter, selling only 22.1 million units. The company said the weak results were due to the softness in the high-end segment in Western Europe. With new products coming later this year, Gartner said it is in a good position to win back the fourth-place ranking.
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