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Gartner Says Worldwide Smartphone Sales Grew 16 Per Cent in Second Quarter of 2008

Japan Saw 24 Per Cent Decline While North America Remained Fastest-Growing Market

Egham, UK, — Worldwide smartphone sales totalled 32.2 million units in the second quarter of 2008, a 15.7 per cent increase from the second quarter of 2007, according to Gartner, Inc. In addition, of all mobile device sales, smartphones' share remained stable at 11 per cent.

"Although global smartphone sales to end users [in the first half of 2008] reached 64 million units, up 22 per cent compared with the first half of 2007, sales increased at a lower rate than in 2007," said Roberta Cozza, principal analyst at Gartner. "The current economic environment continues to negatively impact the market, limiting consumer spending and replacement purchases in general. In addition, smartphone sales slowed down as a result of new compelling touch technology mainly available on enhanced phones (based on proprietary operating systems) rather than smartphones."

"Wider availability of new touch smartphone models together with the global introduction of the iPhone 3G will help sales of smartphones return to stronger growth in the third quarter of 2008," Ms Cozza said.

On a regional level, the North American market remained among the fastest-growing markets in the second quarter of 2008 with an increase of 78.7 per cent year over year. The region also accounted for almost 25 per cent of the global smartphone sales to end users. Europe, the Middle East and Africa exhibited 21 per cent growth year over year; Western Europe drove much of the growth in the region with a 29.3 per cent increase. Finally, the markets of Asia/Pacific and Japan declined 4.8 per cent and 24 per cent, respectively.

Although Nokia held the No. 1 position with a 47.5 per cent market share in the second quarter of 2008, its year-over-year growth was about half of the market average (see Table 1). Nokia faced increased competition in the consumer smartphone market, which had an impact on its year-on-year performance.

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