Numbers show that the worldwide mobile-phone market increased to 674 million units in 2004, a 30-percent increase from sales in 2003. The research comes from Gartner Inc. and mirrors similar findings from the likes of Strategy Analytics and IDC.
“The market exceeded even the most optimistic forecasts in 2004,” said Ben Wood, principal analyst for mobile terminals research at Gartner. “Strong replacement sales, seasonal dynamics and continued growth in emerging markets, especially Latin America, delivered the highest sales volume ever recorded.”
Gartner said sales in Western Europe remained strong due to Christmas sales combined with aggressive pricing on both hardware and calling plans. Color screens, cameras and fashion/design also remained key sales drivers. In Asia/Pacific, replacement sales played a significant role in more mature markets like Australia, Hong Kong and Singapore. In China, mobile phones with color displays and camera phones sold well. GSM sales accounted for 85 percent of total sales in China due to competitive pricing and a focus on low-tier markets by China Mobile, Gartner said. In Latin America, sales continued to grow, with almost 19 million new subscribers added in the fourth quarter.
In North America, Gartner said replacement sales drove the market. In CDMA specifically, LG Electronics Co. Ltd. retained the No. 1 spot with sales of 16 million units during the course of the year, according to numbers from IDC.
“In mature markets, it remains to be seen whether the record-breaking levels of replacement sales can be sustained,” said Hugues De La Vergne, principal analyst for mobile terminals research in the Americas at Gartner. “In emerging markets, the major battle ground in 2005 will be the sub-$50 handset arena.”
