Worldwide sales of mobile devices up by 16.5pc

Worldwide sales of mobile devices to end users totalled 428.7 million units in the second quarter of this year, a 16.5 per cent increase from the second quarter of 2010, according to a study by Gartner that delivers technology research to global technology business leaders to make informed decisions on key initiatives.
The channel built up stock at the end of the first quarter in preparation of possible component shortages following the Japanese earthquake. As a result, sell-in demand slowed in the second quarter of 2011 to 421.1 million units, a 4.4 per cent decrease from the previous quarter.
"Sales of smartphones were up by 74 per cent and accounted for 25 per cent of overall sales, up from 17 per cent in the second quarter of 2010," the report said, adding that it is supported by operator promotions on low and mid-range smartphones, which consumers are choosing over feature phones.
However, replacement sales in Western Europe showed signs of fatigue as smartphone sales declined quarter-on-quarter. Gartner expected manufacturers and distributors to remain cautious about raising their stock levels in the second half of 2011, following the recent uncertainty on world financial markets. The market researcher expected sales of mobile devices to grow around 12 per cent in the full year 2011.
In smartphones, Nokia’s sales into the channel in the second quarter of 2011 were low. "It was partly due to a very competitive market that deflated demand for Symbian, but also to inventory management issues in Europe and China in particular," it added.
Samsung achieved strong growth in sales of mobile devices. The Galaxy S II sold well, and the model went on to chalk up by five million in sales by the end of July. A strong performance in the smartphone market helped Samsung increase its market share to become the third-largest smartphone vendor. However, its overall share dropped year-on-year, and grew only marginally quarter-on-quarter, mainly due to Samsung’s weaker presence in more price-sensitive market segments.
Apple continued to exceed expectations, even though the iPhone 4 will soon be replaced by a new model, according to Gartner that attributed the growth to its 42 new carriers and fifteen new countries that brought its total coverage to 100 countries.
In mainland China, Apple is the seventh-largest mobile phone vendor and the third-largest smartphone vendor. RIM’s share of the smartphone market declined to 12 per cent, from 19 per cent a year ago. The company also lost its number five position in the worldwide ranking of mobile device vendors to ZTE. Demand for RIM’s devices in the second quarter was impaired by an ageing portfolio and delays in shipping products. Google and Apple are the obvious winners in the smartphone ecosystem. The combined share of iOS and Android in the smartphone OS market doubled to nearly 62 per cent in the second quarter, up from over 31 per cent in the corresponding period of 2010.