Phone sales dip 2.3%, smartphones up

Worldwide sales of mobile phones declined 2.3 per cent to 419 million units in the second quarter of 2012 as demand for feature phones continued to decline, according to research firm Gartner.

However, smartphone sales, which accounted for 36.7 per cent of total mobile phone sales, grew 42.7 per cent in the second quarter of 2012.

The total mobile phone sales stood at 428.6 million in April-June 2011 quarter.

"Demand slowed further in the second quarter of 2012. Demand of feature phones continued to decline, significantly weakening the overall mobile phone market," Gartner Principal Research Analyst Anshul Gupta said in a statement.

The challenging economic environment and users postponing upgrades to take advantage of high-profile device launches and promotions available later in the year also slowed demand across markets, Gupta added.

Samsung continued to be the market leader with 21.6 per cent share and sales of 90.43 million units in Q2 of 2012 from 16.3 per cent share in the same period last year.

"The quarter's growth was driven by record sales of Galaxy smartphones (smartphones now account for 50.4 per cent of all Samsung mobile devices or 45.6 million units). Demand for the new Galaxy S3 was particularly strong, exceeding Samsung's own expectations, with a reported 10 million units reached in the two months after its release," Gartner said.

Nokia ranked second with a 19.9 per cent share and 83.42 million units in sales, while Apple sold 28.93 million phones in Q2 of 2012 (with 6.9 per cent share). ZTE had a 4.3 per cent share with 17.93 million units sales.

"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," Gupta said.

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