Handset sales up 6% in 2008 but slump in Q4

Worldwide mobile phone sales grew 6% in 2008 despite a 5% dip in the fourth quarter, analysts at Gartner research have revealed.

Total handset shipments for the year hit 1.22 billion units, a 6% increase compared to 2007.

Fourth quarter shipments, however, dropped 4.6% on year to 314.7 million units, as manufacturers struggled against global low consumer confidence.

This represents a 2% on-quarter growth, the lowest ever recorded in a fourth quarter.

The top five vendors all experienced an on-year decline in sales for the fourth quarter, although Nokia, Samsung and LG all increased their market share.

“Mobile phones have traditionally been one of consumers’ preferred presents for Christmas,” said Carolina Milanesi, Gartner research director for mobile devices.

“However, in the fourth quarter of 2008 consumers were concerned about taking on the contract associated with the most attractive products on the market.”

Instead of upgrading, consumers decided to downgrade or keep their current handset.

Annette Zimmerman, senior research analysts at Gartner, explains: “Reduced consumer confidence, combined with lower subsidies from operators, discouraged users from upgrading their current device.

“Instead, users chose less expensive devices when buying a new phone, or held on to their existing ones.”