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| Gartner Dataquest Says Worldwide Mobile Phone Sales to Surpass a Half Billion Units in 2001 |
| Despite Increased Sales, Industry Will Experience Slower Growth This Year |
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SAN JOSE, Calif., March 20, 2001 - Worldwide mobile phone sales are projected to exceed 506.5 million units in 2001, a 23 percent increase over 2000 sales, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB). The growth rate for 2001 is slower than in 2000, when worldwide mobile phone sales were up 38 percent over 1999 sales. "The rapid annual growth rates of the past several years concealed numerous operational and strategic weaknesses among global handset manufacturers," said Bryan Prohm, senior analyst for Gartner Dataquest's worldwide Telecommunications group. "However, these deficiencies are now being fully exposed thanks to a more challenging business environment. Supply has finally surpassed demand, and although sales growth will continue, only those manufacturers with a strongly differentiated offering will continue to thrive." Western Europe was the No. 1 region in 2000 with shipments of 140.5 million units, but Asia/Pacific and Japan is forecast to be the No. 1 region in 2001. The Asia/Pacific and Japan region is forecast to have sales of 169.6 million units in 2001, which will be a 31 percent increase over 2000. Western Europe is projected to have sales reach 166.6 million units, a 19 percent increase over 2000. North America will be the No. 3 region for mobile phone sales in 2001, as shipments are forecast to reach 90.1 million units, an 18 percent increase over 2000, and Latin America will grow 17 percent, with sales expected to top 42 million units. The rest of Europe, Middle East and Africa is on pace to have sales total 38.2 million units, up 23 percent from 2000. The market is expected to continue to have steady growth through 2005, when worldwide mobile phone sales will reach almost 740 million units. The Asia/Pacific and Japan region will continue to lead worldwide sales in 2005 when shipments are projected to reach 280 million units. Western Europe will remain the No. 2 region with sales of 207 million units in 2005. "The market is in a curious situation," said Peter Richardson, chief analyst for Gartner Dataquest's worldwide Telecommunications group. "High levels of stock carried over from year 2000 are depressing new sales from manufacturers in the first quarter, but sales out of the channel in Europe and Asia/Pacific remain strong, underlining our belief that annual sales of more than 500 million units are still possible." 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 telecommunications 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. About Gartner Gartner provides unrivaled thought leadership for more than 10,000 organizations, helping clients 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 Consulting; 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 4,600 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. |
| CONTACT: |
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Tom McCall 408-468-8312 tom.mccall@gartner.com |
