Gartner: Smartphones boom, overall mobile sales drop
IDG News Service - Mobile phone sales floundered during the second quarter in the wake of the earthquake in Japan. But smartphone sales continued to grow, as Android extended its lead in the operating system race, according to market research company Gartner.
Overall sales of mobile devices to end users totaled 428.7 million units in the second quarter of 2011, a 16.5% increase compared to the same period in 2010, but a 4.4% decrease from the previous quarter, as the availability of components was affected by the earthquake in Japan.
Smartphone sales grew from 100.8 million to 107.7 million units sequentially, and were up 74% year-on-year. The segment now accounts for 25% of overall sales.
But all is not well. Replacement sales in Western Europe showed signs of fatigue as smartphone sales declined quarter-on-quarter, partly due to declining consumer confidence in the face of larger economic worries, according to Roberta Cozza, principal research analyst at Gartner.
Google and Apple continue to be the big winners in the smartphone ecosystem. The combined share of Android and iOS nearly doubled to 61.6% in the second quarter of 2011 compared to the same period last year.
Vendors sold 46.8 million smartphones based on Google's embattled operating system, giving it a 43.4% market share. That compares to 10.7 million units and a market share of 17.2% in the second quarter of 2010. Android's lead over second placed Symbian is now about 23 million units, up from almost 10 million during the first three months of 2011. Symbian's market share is now 22.1%.
Again, Apple and iOS exceeded expectations, even though the iPhone 4 will soon be replaced by a new model, according to Gartner. Sales were helped by the 42 new carriers and 15 new countries that Apple entered in the second quarter of 2011, which brought its total coverage to 100 countries, Gartner wrote.
Apple continued to be the fourth largest phone maker overall, the number two smartphone maker and its iOS the third largest smartphone operating system. It sold 19.6 million phones, helping the company's market share to grow from 2.4% to 4.6% year-on-year. In the operating system race among smartphones, iOS now has 18.2% market share, compared to 14.1% in the second quarter 2010.
Apple still has some work to do if the company wants to become the third largest phone maker in the world. The current number three, LG Electronics, sold 24.4 million units, about 5 million fewer year-on-year.
Partners Nokia and Microsoft are both struggling. Nokia is still the biggest phone and smartphone maker, according to Gartner's numbers. The company sold 97.9 million phones, compared to 111.5 million in the second quarter of 2010. That meant its market share dropped from 30.3% to 22.8%. Nokia's numbers were helped by a sales channel that worked hard to move its stock of the company's phones, in part by cutting prices on older models, according to Gartner.
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