Global News

March 2, 2004
Mobile phone sales to reach 560 million units in 2004

UNITED STATES -- According to early estimates from Gartner, Inc, the worldwide mobile handset market continues to beat expectations, and could exceed 510 million units in 2003. Based on manufacturers' shipments to the distribution channel in Q4-03, the company said it was provisionally raising its forecast for mobile phone sales to 560 million in 2004.

According to Gartner, sales exceeded expectations worldwide. The mature markets, including the US, Western Europe and Japan, saw a surge in replacement sales. In Japan, W-CDMA and CDMA2000 phones sold particularly well, especially those featuring built-in cameras. In the emerging markets, such as China, India, Russia and Brazil, sales continued to surpass expectations due to availability of very low cost phones and aggressive operators' strategies to win subscribers. Early indicators during Q1-04 reveal that the positive trend in mobile handset market is continuing.

Ben Wood, principal analyst, mobile communications group, Gartner, Europe, said: "2003 was a phenomenal year for the mobile phone industry, with an average growth rate of nearly 20 percent. SARS had a significant effect on sales in the APAC during the second quarter. However, sales picked up remarkably in the last two quarters. In mature markets, replacement sales were the strongest driver of growth in 2003. Colour screens and camera phones were high on consumers' shopping lists. However, there was also a high level of demand for inexpensive voice-centric handsets. As we enter 2004, the emerging markets will play an important role. We expect manufacturers to continue developing low cost products, specifically for these markets "

Contact:
Gartner
www.gartner.com