Gartner Says 428 Million Mobile Communication Devices Sold Worldwide in First Quarter 2011, a 19 Percent Increase Year-on-Year

Gartner Says 428 Million Mobile Communication Devices Sold Worldwide in First Quarter 2011, a 19 Percent Increase Year-on-Year

Apple, Samsung and HTC Reported Strongest Results in an Increasingly Smartphone-Dominated Market

Egham, UK, May 19, 2011—

Worldwide mobile communication device sales to end users totaled 427.8 million units in the first quarter of 2011, an increase of 19 percent from the first quarter of 2010, according to Gartner, Inc. Smartphones continued to outpace the rest of the market, and a newly competitive mid-tier smartphone market will drive smartphones into mass adoption and accelerate this trend.

“Smartphones accounted for 23.6 percent of overall sales in the first quarter of 2011, an increase of 85 percent year-on-year,” said Roberta Cozza, principal research analyst at Gartner. “This share could have been even higher, but manufacturers announced a number of high-profile devices during the first quarter of 2011 that would not ship until the second quarter of 2011. We believe some consumers delayed their purchases to wait for these models.”

Overall, the earthquake and tsunami in Japan will have a smaller effect on the mobile communication devices market than initially anticipated. There is currently about six to seven weeks worth of inventory of finished products in the channel and about four weeks worth of inventory for components. Gartner estimates that manufacturers’ sales into the channel will drop in the second quarter of 2011, while sales through to consumers will be flat.

Nokia sold 107.6 million mobile devices in the first quarter of 2011 (see Table 1). Its market share declined 5.5 percentage points year-on-year, and its share has reached its lowest since 1997. Nokia will aggressively lower average selling prices (ASPs) in markets where communications service providers (CSPs) control the sales channels, in order to maintain shipments of Symbian devices while waiting for its first Windows Phone 7 devices to reach the market. However, Nokia will face challenges from Android competitors and from some Japan-induced supply constraints.

via Gartner Says 428 Million Mobile Communication Devices Sold Worldwide in First Quarter 2011, a 19 Percent Increase Year-on-Year.