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Handset market enjoys healthy 2Q sales in all regions

Worldwide mobile-phone sales are on track to reach 620 million units for full-year 2004, according to new market research from Gartner Inc.

In fact, if current sales momentum is maintained, Gartner analysts said 650 million units could be sold for the year. For the first half of 2004, 300 million phones were sold.

Second-quarter phone sales surpassed 156.4 million units, a 35-percent increase from the second quarter of 2003, according to Gartner, with all regions experiencing healthy growth in sales.

“In mature markets, such as Western Europe and North America, sales of replacement handsets ensured strong results, while spectacular growth in emerging markets, notably Latin America, further boosted unit sales,” said Ben Wood, principal analyst for mobile terminals research at Gartner.

Nokia Corp. still dominated the sector, although its second-quarter market share of 29.7 percent reflected a 5-percent decline from the year-ago quarter, according to Gartner.

Motorola Inc. held onto second place with 15.8-percent market share, “but Gartner expects Samsung to be battling with Motorola for the No. 2 position for the remainder of the year,” said Wood. Samsung Electronics Co. Ltd. took 12.1-percent market share for the second quarter.

Siemens AG, Sony Ericsson Mobile Communications and LG Electronics Ltd. meanwhile remain in a scramble for fourth place with 6.9 percent, 6.6 percent and 6 percent market shares, respectively.

Regionally, Gartner said replacement phones drove Western European and North American sales. Brazil and Mexico contributed the strongest sales in Latin America. Sales in Asia Pacific were down slightly due to seasonal trends and government efforts to control the economy there.

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