Money Matters - Simplified

Mobile phone sales might propel during Pre-Christmas shopping - Gartner

Mobile phones Will pre-Christmas shopping boost cellphone sales?

Cellphone sales have been consecutively low for the third quarter in a row for the present financial year. However the upcoming Pre-Christmas season carries a little promise to uplift the falling sales graph.

The current quarter of the financial year has witnessed a decline in cellphone sales by 3 per cent as compared to the last year.

Research firm Gartner attributes this sales decline to a weak global economy which is forcing people to cut back on their expenditure on gifts and personal gadgets as well as the new breed of tablets that have been brought forth by all the major mobile phone manufacturers in large number of models to serve all the consumer segments.

Say Gratner analysts," It will be a cautious quarter. Consumers are either cautious with their spending or finding new gadgets like tablets, as more attractive presents."

While cellphone sales have declined 3 per cent in this quarter, smartphone sales have seen a good 47 per cent rise triggered predominantly by the strong demand for smartphones in China where alone the annual sales have risen to a massive 165-170 million from a mere 78 million last year.

Anshul Gupta, a Gartner analyst, confirms," There is huge growth coming from the Chinese market."

Cellphone sales are still being led by mobile phone giant Samsung which is much ahead of Nokia and Apple. Samsung holds an unbeatable 39.6 per cent share in the global mobile phone sales whereas Nokia holds the second highest share at 19.2 per cent (it was 23.9 per cent for Nokia a year earlier) and Apple holds a distant third position with 5.5 per cent share.

Even though Nokia led the smartphone sales early last year, it has slumped to the seventh position in the current quarter.