Cell Phone Sales Surpass Expectations

Worldwide cell phone sales were unexpectedly brisk in the second quarter of 2004. Experts had predicted that the sale of cell phones would be flat during the quarter. Instead, sales were up 35 percent over the same quarter in the previous year.

According to Gartner, a technology research firm that tracks cellular market sales and trends, more than 156 million cell phones were sold from April to June. A surprising number of phones were sold in Latin America. Lower prices and special offers from cellular service providers enticed Latin American consumers to jump into the cellular phone market. Cell phone sales in Latin America jumped 20 percent during the quarter.

European sales also increased. A price war between European cellular companies sparked the sales boost. When Hutchison reduced prices in Italy and Britain, other companies followed suit. In the US, sales growth was attributed to customers making phone upgrades. Many US consumers were attracted to new cell phones with built-in cameras and color display. A plethora of special offers on the newest phones encouraged consumers to upgrade during the quarter.

Sales of cell phones in the Asia-Pacific region were down slightly when compared to the second quarter of 2003. Gartner said consumers in the region are waiting for anticipated price reductions and subsidies before purchasing new cell phones.

Second quarter phone sales were up over first quarter worldwide sales of 153 million phones. Gartner said that if the market holds, 2004 cellular sales could reach 650 million—10 percent more than predicted at the start of the year.

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About The Author:

Wendy Whittaker is a successful author and regular contributor to http://www.1st-in-cell-phones.com. A cellular phone industry resource featuring articles, comparisons and reviews of cellular phone and service plans.