Mobile Phone Sales Fall For First Time In 2001

In 2001, sales totalled around 399.6 million units, falling by 3.2% when compared to 2000 sales, said Gartner Dataquest. Worldwide mobile phone sales between 1996 and 2000 experienced a compound annual growth rate of almost 60% but in 2001 the mobile phone industry suffered a drop in unit sales.

“The removal of prepaid subsidies supporting mobile terminal sales in historically high-growth markets like Western Europe and Latin America was a significant factor in the decline in handset sales during 2001,” said Bryan Prohm, senior analyst at Gartner Dataquest. “Additionally, unexpectedly strong growth in Subscriber Identity Module (SIM)-only subscriptions gave rise to a burgeoning market for second-hand terminals across the developing world.”

Worldwide Mobile Terminal Sales to End-User Estimates for 2001 (000s of Units)
Company	2001 Shipments	2001 Market Share (%)	2000 Shipments	2000 Market Share (%)	Growth (%)
Motorola	59,092	14.8	60,094	14.6	-1.7
Siemens	29,753	7.4	26,989	6.5	10.2
Samsung	28,234	7.1	20,639	5	36.8
Ericsson	26,956	6.7	41,467	10	-35
Others	115,877	29	137,173	33.2	-15.5
Total	399,583	100	412,731	100	-3.2
Source: Gartner Dataquest, 11 March 2002

“A considerable bubble of unsold inventory from the fourth quarter of 2000 further depressed sales in key markets,” said Ann Liang, industry analyst at Gartner Dataquest. “The distributors and carriers most exposed to the inventory overhang sought out the grey market. Consequently, the Asia/Pacific region, and in particular the Chinese market, experienced what was arguably the most active period of grey market importing of mobile terminals in several years.”