Sales of Mobile Phones Declined 2.3 Percent in 2Q of 2012 Worldwide

by • On Aug 14, 12 23:44pm • 1386 Views

Regardless the fact that now a days more smartphones are making their way to the consumer market than ever before, sales volume is declining pretty quickly. At least the analysis report of Gartner Inc. indicates this very reality. On a recent press release, technology research and advisory company Gartner Inc. has stated that smartphone sales accounted for 36.7 percent of the total mobile phone sales in the world. However, that number reached to 42.7 percent in the second quarter of 2012.

Windows Smartphone UserThe increase of smartphone’s market share indicates that more people are buying smartphones like iPhone, Android, Symbian or Windows operating system based devices over regular cellular phones now a days, which is definitely a positive growth for overall mobile phone market. However, Principal research analyst at Gartner, Anshul Gupta says, “The challenging economic environment and users postponing upgrades to take advantage of high-profile device launches and promotions available later in the year slowed demand across markets. Demand of feature phones continued to decline, significantly weakening the overall mobile phone market.”

Mr. Gupta also indicated that the long anticipated release of Apple’s iPhone 5 is also responsible for slowing down the market growth for a while. For now people are holding back because many existing smartphone users are expecting to get their hands on iPhone 5 and some other smartphones. Their report states that in second quarter of 2012, the demand for iPhone went down as the sales fell by 12.6 percent over the first quarter of the same year. He also expects that the with the release of iPhone 5 and the continuous effort of the Chinese manufacturers to get 3G network would gear up the market later on.

Among all the major smartphone manufacturer, Samsung enjoyed more growth than any other company in second quarter of 2012. Starting from the second quarter of 2011 to same quarter of 2012, Samsung witnessed nearly 30 percent of total growth which placed them at the top over Apple and Nokia on second quarter of 2012. Gartner indicates that the overwhelming popularity of Samsung Galaxy smartphones was the ultimate reason of their success. They sold well over 45 million of Galaxy smartphones which holds over 50 percent of total Samsung smartphones sales.

Mr. Anshul states, “In the race to be top smartphone manufacturer in 2012, Samsung has consistently increased its lead over Apple, and its open OS market share increased to one-and-a-half times that of Apple in the second quarter of 2012.

Another well-known manufacturer, Nokia also witnessed 14.8 percent of sales decline in the same quarter. “Declining smartphone sales is worsening Nokia’s overall position, as it had already lost the No. 1 position to Samsung in the previous quarter and is facing reduced profitability due to continuous declining sales of premium smartphones,” said Mr. Gupta.

You can access more detail analysis reports of Gartner on subscription basis from here.

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