Samsung Mobile Phone Sales Remain Strong Despite Overall Decline

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By Trey Thoelcke Published
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Gartner, an information technology research and advisory company, announced today that worldwide sales of mobile phones declined 2.3% in second quarter to 419 million units, compared to the year-ago quarter. Smartphone sales, which accounted for 36.7% of total mobile phone sales, grew 42.7% in the second quarter.

A research analyst for Gartner said:

The challenging economic environment and users postponing upgrades to take advantage of high-profile device launches and promotions available later in the year slowed demand across markets. Demand of feature phones continued to decline, significantly weakening the overall mobile phone market.

Samsung’s mobile phone sales remained very strong in the second quarter, up 29.5% year over year, driven by record sales of Galaxy smartphones. Smartphones now account for 50.4% of all Samsung mobile devices.

Consumer demand for Apple Inc.’s (NASDAQ: AAPL) iPhone weakened in the quarter. Sales fell 12.6% from the first quarter of 2012, though they were up 47.4% from a year ago. Sales results in the third quarter of 2012 will depend on when the iPhone 5 launches.

Nokia Corp.’s (NYSE: NOK) mobile phone sales slipped 14.8% in the second quarter, though its sales grew quarter-on-quarter.

In the smartphone OS market, Android extended its lead with an increase of 20.7% in market share in the second quarter. Apple’s iOS market share grew 0.6% year over year but declined 3.7% points quarter-on-quarter.

The report said:

Samsung and Apple continued to dominate the smartphone market, together taking about half the market share, and widening the gap to other manufacturers. No other smartphone vendors had share close to 10 percent. … In the race to be top smartphone manufacturer in 2012, Samsung has consistently increased its lead over Apple, and its open OS market share increased to one-and-a-half times that of Apple in the second quarter of 2012.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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