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Worldwide Phone Sales Will Increase To 1.28 Billion This Year: Report

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This year, worldwide sales of mobile phones will reach 1.28 billion units in 2008, a 11 percent increase compared to the 1.15 billion units sold last year, according to a report released today by Gartner. It said that in the first quarter sales totaled 294.3 million, and sales in the second quarter are expected to hit up to 305 million units. Although sales may be affected by the poor economy, Gartner said Q4 could make up for it all with new products expecting to hit the market in time for the holiday season.

Other findings from the report:

Numbers by region: Some regions may experience a decline in 2008 sales with mobile phone sales relying on emerging markets as mature regions, such as Western Europe, Japan and North America reach saturation. Asia/Pacific sales are expected to hit 472.5 million units in 2008, a 17.9 percent increase from 2007; Western Europe projects to reach 188 million units, a 1.5 percent decline; North America expects totals of 185.7 million in 2008, a 5.3 percent increase; and Japan is estimated to reach 47.7 million units, a 9.1 percent decrease.

Consumer electronic companies participate: One trend Gartner is seeing is differentiation with more consumer electronics companies entering the market. The two big examples is Apple (NSDQ: AAPL) and Garmin.

Device vendors build out ecosystems: Another trend Gartner is seeing is that established handset makers, like Nokia (NYSE: NOK) and Sony (NYSE: SNE) Ericsson (NSDQ: ERIC) are building out content services in order to increase revenues. Nokia has Ovi and Sony Ericsson has PlayNow. Another example is Apple’s iTunes. As part of this, applications relevant to enterprises, such as location and navigation, will become available directly from device vendors that are integrating GPS into products.

Removing complexity and lifestyle statements: Simpler user interface and service experiences are big, with mobile device companies spending a lot of time creating easy-to-use, and yet familiar experiences for the consumer. Also, style is playing a bigger role with vendors being more creative with color, and partnering with fashion, consumer electronics, and sports brands.

Aug 5, 2008 3:03 PM ET

Posted In: Research & Metrics, Companies, Motorola, Nokia, Samsung, Sony, Sony Ericsson, gartner

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