Mobile phone sales decline 2.3%

Smartphones accounted for 42.7% of total mobile sales by Q2 2012; overall mobile phone sales reached 419 million units in the same period

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Mobile phone sales decline 2.3% Smartphones accounted for 42.7% of total mobile sales by Q2 2012; overall mobile phone sales reached 419 million units in the same period.
By  Clayton Vallabhan Published  August 16, 2012

Mobile phone sales reached 419 million units in Q2 of 2012. This is a 2.3% decline from the second quarter of 2011 according to Gartner's latest report.

Smartphones accounted for 42.7% of total mobile phone sales by Q2 2012.

"Demand slowed further in the second quarter of 2012," said Anshul Gupta, principal research analyst at Gartner. "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.

"High-profile smartphone launches from key manufacturers such as the anticipated Apple iPhone 5, along with Chinese manufacturers pushing 3G and preparing for major device launches in the second half of 2012, will drive the smartphone market upward. However, feature phones will continue to see pressure," said Gupta.

Samsung's mobile phone sales were up 29.5% from Q2 2011, and the manufacturer managed to sustain its lead over Apple and Nokia in both quarters. Its Galaxy smartphones saw record breaking sales, and accounted for 50.4% of all Samsung mobile devices (nearly 45.6 million units). The S3 saw phenomenal demand with the smartphone surpassing even Samsung's expectations. It sold more than 10 million units in the two months after launch.

Apple iPhone sales fell 12.6% from Q1 2012, but grew 47.4% year-on-year. Q3 might be weak for Apple, depending on when it releases its new iPhone.

"Samsung and Apple continued to dominate the smartphone market, together taking about half the market share, and widening the gap to other manufacturers. No other smartphone vendors had share close to 10%," said Gupta. "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."

Nokia's sales declined 14.8% in Q2 2012. The manufacturer however saw some growth in the feature phone market, as its sales grew quarter-on-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," concluded Gupta.

 

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