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Mobile Phone Sales Drop Prior to iPhone 5 Launch

Global sales of mobile phones have dropped 2.3% in the second quarter of this year. The figure comes from Gartner, a US-based technology research firm. In particular, only 419 million mobile phone units were sold during the quarter. Smartphones comprise 36.7% of this number, marking a 42.7% in the number of smartphone units sold during last year’s second quarter. On the other hand, the sales of feature phones are likely to continue its dip.

Gartner says that the reason behind this decline is twofold. First, there is some insecurity brought about by various challenges to the economy; and second, some mobile phone users want to hold off their mobile phone purchases until the latter part of the year when big companies are expected to launch new devices.

Sales, however, should pick up when the next iPhone as well as other anticipated devices from other companies are finally launched during the second half of 2012.

Samsung is still on top of the mobile phone game in terms of market share. Its lead over Apple, Gartner maintains, is increasing at a steady rate. The South Korean company has gained a 29.5% increase as compared to the figures it had gotten during last year’s second quarter. Samsung has mostly to credit its Galaxy smartphone line for this increase as smartphones account for 50.4% of its total sales. Samsung reportedly received a very high demand for its flagship phone this year, the Samsung Galaxy S III. Just two months since it had been launched, the company is said to have sold 10 million units of the device. Samsung even claims that were it not for shortage of supply, the figure could have been higher.

Meanwhile, the demand for the iPhone has reduced pending the launch of the iPhone. The opposite was true for Samsung before the Galaxy S III was launched. Apple’s has been consistently weak since the first quarter, when its sales fell 12.6%, and the trend will presumably continue until the third quarter, especially as excitement builds for the next iPhone. Apple will have an unsurprising strong fourth quarter because the holidays in North America and Western Europe are commonly lucrative for Apple despite the changing economic climate.

Via itweb 

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