Cellphone sales in the United States declined abruptly in the first quarter of the year, the first time since The NPD Group began tracking handsets, the firm wrote in a new report. The quarter saw a 22% decline in sales year-over-year, reaching just shy of 31 million units and sales of $2.7 billion, down from $2.9 billion a year ago.
The 7% drop in sales revenues came soon after the traditional holiday season rush, wrote Ross Rubin, director of industry analysis at the firm.
“Cellular phone service has become a practical necessity in modern life; however, with looming economic concerns on the horizon, many consumers may be holding back on new handset purchases, especially those tied to new prepaid plans,” he wrote.
Motorola Inc. nabbed a 27% share of units purchased during the quarter, maintaining its lead in the U.S. market. Samsung Electronics Co. Ltd. gleaned 18%, followed just barely by LG Electronics Co. Ltd. at 17%. Nokia Corp. and BlackBerry-maker Research In Motion Ltd. rounded out the remaining top five OEMs at 8% and 5%, respectively. RIM made the biggest move in the quarter, shoving Sanyo Electric Co. Ltd. out of the top five.
The smartphone category continued its steady climb, comprising 17% of all sales, and jumped 10% year-over-year. Bluetooth technology was included in 79% of all handsets sold in the quarter, jumping 14%, and music-enabled phones now comprise the majority, rising 19% to reach 60% of all phones, the report concluded.
Lastly, the firm found that carrier stores clock 63% of all handset sales while mass merchandisers and electronic stores pull up the rear with 9% and 6% of sales, respectively.
A slowdown in the U.S. cellphone market: NPD: 22% decline year-over-year
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