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Gartner Cuts Their Original Estimate Of Handset Sales

According to Gartner Inc, full year sales for mobile handsets could be less than the 1.8 estimate that was made earlier.

Carolina Milanesi who is a Gartner Analyst reported that the 13.3 million unit growth in channel inventory, along with less demand from consumers in emerging markets registered at the start of the second quarter is leading to caution regarding sales for the reminder of the year.

The research firm has decided to cut their full year sales forecast and also expects unit sales to be between 1.79 and 1.795 billion. This will represent growth of around twelve percent from last year’s shipment of 1.6 billion that Gartner had reported. First quarter sales have grown nineteen percent to almost 428 million units and is driven by sales of smartphones which accounted for almost a quarter of all handsets sold world wide.

Gartner’s Analyst also wrote in the report that the earthquake and tsunami in Japan will have a smaller impact that what was originally estimated. Along with that Nokia’s market share has continued to decline and is down 5.5 percentage points to barely over 25 percent in the first quarter and has continued to hold on to their position as the largest handset maker by the end user sales. Apple in turn, has moved up in ranks and now sits at fourth place right after Samsung, LG, and RIM.

Nokia will need to try to prop up shipments of their Symbian smartphones by lowering prices in carrier dominated markets while preparing their new line running Microsoft’s software.



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