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Global Phone Sales Decline, Analyst Blames iPhone 5 And Economy

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A report released by Gartner, a research firm, says that the mobile phone sales in the second quarter dropped by 2.3%, when compared to the second quarter of last year.

Global Phone Sales Decline, Analyst Blames iPhone 5 And Economy

The report cites a major economic decline as being a huge factor in the cell phone sales dropping. With the crisis in the Eurozone, the sluggish American economy, and the slowdown in China and other eastern countries, it should be no surprise to see the mobile market experiencing a slump as well.

In the modern day, in which we live, being without a cell phone is almost more handicapping, than being without a car. We use our cellphones to manage almost every part of our daily lives, including our schedule, our banking, purchasing products from retailers, and our social networking with friends and family.

Does this drop in sales mean that more people are doing away with their mobile phones? Not hardly. According to digitalbuzzblog.com, in 2011 there were 4 billion mobile phones iin use, with about 1.08 billion of those being smartphones. Many people have opted to hold on to their current phone, rather than purchasing the newer models, and this has cramped sales for many major companies.

However, even though the economy is slow worldwide, certain phones do continue to exhibit an upward trend in the market. While struggling handset manufacturer, Nokia Corporation (NYSE:NOK) has been fighting to stay alive, along with Research In Motion Limited (TSE:RIM), the manufacturer of the Blackberry line, there are at least 2 companies which are showing signs of growth.

Samsung Electronics Co., Ltd. (LON:BC94) has just claimed the top spot this quarter, as sales of its Galaxy models soared, rising 5.3% this quarter. Apple Inc. (NASDAQ:AAPL) was in the top ranked spot in sales, but their sales dropped of this quarter, and analysts say that it has a lot to do with the rumored iPhone5, which is supposed to hit stores in September.

Apple Inc. (NASDAQ:AAPL)’s latest iPhone model is expected to achieve record sales, helping the company reclaim its crown as king of the mobile hill. However, Gartner feels that the exact release date of iPhone5 could majorly impact sales for the 3rd quarter.According to Cnet, Gartner warns that the 3rd quarter sales for  Apple Inc. (NASDAQ:AAPL), may be “weaker than usual”, if the company waits too long to release the new model.

The mobile phone has changed the way we do everything, from conducting business, to sending emails and talking to family and friends. It has revolutionized our ability to stay in contact with one another, from nearly anywhere on the globe. While sales may seem to be slow now, the mobile phone has become a necessary part of our lives, and people all around the world will continue to purchase them. Slowing economies, and global slowdown, will not affect mobile phone sales in the long run, as we all need to be able to stay in touch with each other.

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