Gartner Dataquest Says Worldwide Mobile Phone Sales Increased 46 Percent in 2000SAN JOSE, Calif., February 15, 2001 — Worldwide mobile phone sales totaled 412.7 million units in 2000, a 45.5 percent increase over 1999 results, according to Dataquest Inc., a unit of Gartner Group Inc. (NYSE: IT and ITB). Despite some "hiccups" within the industry and its key supply channels, overall shipments continued to perform well throughout 2000.
Gartner Dataquest analysts said 2000 was a transitional year for the mobile phone industry, and they identified a number of issues that affected growth in the industry. Global capacity caught up with demand. Lowered barriers to entry allowed an influx of smaller manufacturers that were able to exploit demand in some of the key Far Eastern markets, such as China. Wireless application protocol (WAP) failed to impress increasingly savvy mobile users, and thus what had been anointed as the catalyst for the next wave of terminal sales growth turned out to be a little more than a ripple. Finally, mobile operators began to shift attention away from straightforward subscriber acquisition to a greater focus on lifetime customer loyalty.
"The long-term prospects for the mobile sector look tough," said Peter Richardson, principal analyst for Gartner Dataquest's worldwide telecommunications group. "Few manufacturers are able to generate healthy profit margins, placing the necessary investments in next-generation handsets developments at risk. The smart money may be riding on players that are unfamiliar with the upper echelon vendors."
Gartner analysts will provide additional analysis on the mobile and wireless world during the Wireless Access, Mobile Business 2001 conference, March 26-28 at the Sheraton San Diego Hotel and Marina in San Diego, California. Gartner analysts will help identify the risks, rewards and realities of the new mobile millennium and help position businesses to win big in the evolving wireless world. Additional information on the conference is available at www.gartner.com or by calling 1-800-778-1997.
This research is published by Gartner's worldwide Telecommunications and Networking group. This group provides analysis for the full spectrum of telecom and networking issues. To keep up to date on the latest telecommunication issues, please visit Gartner's Telecom Marketplace Resource Center at www.gartner.com. To purchase reports or subscribe to Gartner Dataquest programs, please call 800-419-DATA, or 408-468-8009.
Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.
Gartner provides unrivaled thought leadership for more than 10,000 organizations, helping clients to achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartner's technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit; Gartner Services, its custom consulting unit; Gartner Events, including Gartner's renowned Symposia; and, at www.gartner.com. Gartner subsidiary TechRepublic, Inc. (www.techrepublic.com) is the leading online destination developed exclusively for IT professionals by IT professionals. Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 2000 revenue of $859 million. Gartner's 4,300 associates, including 1,400 research analysts and consultants, are in more than 80 locations worldwide. For more information about Gartner's industry-leading products and services, please visit us on the Web at www.gartner.com.