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Mobile phone sales top 96 million units in first quarter

Friday 01 June 2001 06:04
Worldwide sales of mobile phones reached 96.7 million units in the first quarter of 2001, and the cellular phone market remains on track to reach 500 million units sold by the end of 2001, according to a new study.

Nokia led the way with its market share exceeding 35% for the first quarter compared to 27.9% for the same time last year, according to the study by Dataquest, a subsidiary of research group Gartner.

Motorola was second with a 13.2% market share followed by Siemens at 6.9%, Ericsson with 6.8%, and Samsung at 6.3%.

Despite the first quarter's seemingly healthy returns, Dataquest warns of a tough mobile phone market this year. The market for new wireless subscribers is decreasing and the replacement market is becoming the largest segment of annual sales, said Dataquest analyst Bryan Prohm.

There also is a glut of mobile phones in the supply channel from the fourth quarter of 2000, Dataquest said. As many as 30 million to 35 million units are in distribution channels, resulting in numerous leading OEMs selling more handsets to end users than actually shipping to distribution channels, Prohm said.