Global mobile phones sales dips 6% in Q2

Sales of mobile phones worldwide declined by 6 per cent while that of smartphones increased by 27 per cent in Q2 FY 10 as compared to the same period last year, a report said.

Worldwide mobile phone sales were 286.1 million units in the second quarter of this fiscal, decreased by 6 per cent as compared to 304.7 million, Gartner said in its report.

Gartner is an information technology research and advisory company.

?Despite the challenging market, some devices sold well as consumers who would usually have purchased standard mid-range devices either cut back to less expensive handsets or moved up the range to get more features for their money,? Gartner?s Research Director, Carolina Milanesi, said.

Touchscreen devices remained a major driver for replacement sales and benefited manufacturers with strong, touch-focused mid-tier devices, she said.

?However, the decline in average selling price (ASP) accelerated in the first half of the year and particularly affected manufacturers that focus on mid-tier and low-end devices where margins are already slim,? Milanesi said.

The recession continued to suppress replacement sales in both mature and emerging markets, the report said.

The distribution channel has dealt with lower demand and financial pressure by using up 13.9 million units of existing stock before ordering more, it said.

Gartner expects the gap between sell-in to the channel and sell-through to customers would reduce in the second-half of 2009 as the channel starts to restock.

?Smartphone sales were strong during the second quarter of 2009, with sales of 40.9 million units in line with Gartner?s forecast of 27 per cent year-on-year sales growth for 2009,? Milanesi said.

?Given the higher margins, smartphones offer the biggest opportunity for manufacturers. It is the fastest-growing market segment and the most resistant to declining ASPs,? the report said.

Nokia maintained its leadership position, but its portfolio remained heavily skewed toward low-end devices.

It sold 105.1 million in Q2 as compared to 120.3 million devices in the same period last year.

Samsung and LG both had a very strong quarter of 2009 with sales of 55 million units and 30.5 million units respectively.

Sony Ericsson?s market share dropped 2.8 percentage points year-on-year in the second quarter of 2009 but its volume dropped 41 per cent, the report said.