Smartphone Sales Grow At Slower Pace in Q2 2008

By Dee Chisamera
15:00, September 9th 2008
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Smartphone Sales Grow At Slower Pace in Q2 2008

While the consumer smartphone market continues to see an increasing competition year after year, quarterly sales begin to slow down a bit compared to 2007. According to Gartner’s latest report on Q2, global sales have gone up 15.7 percent from last year, while the smartphones’ share continued to represent 11 percent of the mobile device sales.

Gartner principal analyst Roberta Cozza noted that the smartphone market continues to be negatively influenced by the current economic environment, which limits consumer spending and replacement purchases. Furthermore, Cozza explained, the new touch technology on enhanced phones based on proprietary operating systems also contributed to smartphone sales slowing down.

However, Q3 is expected to show better results, especially considering the global release of the iPhone 3G, as well as a series of touch screen smartphone models.

Overall, Nokia continued to keep a lead position, with a 47.5 percent market share in Q2 of 2008, Research In Motion has managed to almost double its market share compared to the same period last year, to 17.4 percent. HTC, Sharp and Fujitsu completed the top 5, with less than one fourth of RIM’s share.

“To stay competitive, Nokia will need to introduce more design variations amongst its Nseries models and keep innovating,” Cozza said. “The expected introduction of a touch-screen smartphone in the second half of 2008 will test the company’s capability to show differentiation and innovation.”

The yearly increase in smartphone sales for RIM was 126 percent, and things continue to look promising for RIM, as it prepares to unveil smartphones based on new form factors, and continues to increase its global market reach.

Apple’s share also decreased from 5.3 percent to 2.8 percent in the second quarter of 2008, however that could be easily explained through a necessity for the company to make way for the next generation iPhone, which is expected to increase sales figures for Q3.

As for the smartphone operating system market, Symbian held the number one spot, with 57.1 percent, followed by Research in Motion with 17.4 percent, and Microsoft Windows with 12 percent. Overall, Gartner reported that Symbian’s share declined as a result of a more competitive and fragmented mobile operating system market.



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