The worldwide mobile handset market continues to beat
expectations and 2003 figures could exceed 510 million units,
according to Gartner.
The estimate is based on manufacturers’ shipments to the
distribution channel in the fourth quarter of 2003.
"2003 was a phenomenal year for the mobile phone industry, with
an average growth rate of nearly 20%,” said Ben Wood, principal
analyst with the mobile communications group for Gartner in
Europe.
“The Sars virus had a significant effect on sales in
Asia-Pacific during the second quarter, but sales picked up
remarkably in the last two quarters.”
Gartner said sales exceeded expectations around the world. The
mature markets, including the US, Western Europe and Japan, saw a
surge in replacement sales.
In Japan, wideband code division multiple access (W-CDMA) and
CDMA2000 phones sold particularly well, especially those featuring
built-in cameras.
“In mature markets, replacement sales were the strongest driver
of growth in 2003,” said Wood. "Colour screens and camera phones
were high on consumers’ shopping lists, but there was also a high
level of demand for inexpensive voice-centric handsets.”
In the emerging markets, such as China, India, Russia and
Brazil, sales continued to surpass expectations because of very
low-cost phones and operators’ aggressive strategies to win
subscribers.
In India, for example, stronger-than-expected demand resulted in
at least 18 million handsets being sold in 2003.
“As we enter 2004, the emerging markets will play an
increasingly important role, and we expect manufacturers to
continue developing low-cost products specifically for these
markets.”
Gartner also revealed that early indicators during the first
quarter of 2004 show that the positive trend in the mobile handset
market is continuing.
Based on preliminary forecasts, Gartner said it was
provisionally raising its forecast for mobile phone sales to 560
million in 2004.
Written by
Computing SA staff