Worldwide sales of mobile devices totaled 440.5 million units in the third quarter of 2011, up 5.6% from the same period last year, according to Gartner. Non-smartphone devices performed well, driven by demand in emerging markets for low-cost devices from white-box manufacturers, and for dual-subscriber identity module (SIM) devices.
Smartphone sales to end users reached 115 million units in the third quarter of 2011, up 42 % from the third quarter of 2010. Sequentially, smartphone sales slowed to 7% growth from the second quarter of 2011 to the third quarter. Smartphone sales accounted for 26% of all mobile phone sales, growing only marginally from 25% in the previous quarter.
"Strong smartphone growth in China and Russia helped increase overall volumes in the quarter, but demand for smartphones stalled in advanced markets such as Western Europe and the US as many users waited for new flagship devices featuring new versions of the key operating systems," said Roberta Cozza, principal research analyst at Gartner. "Slowdowns also occurred in Latin America and the Middle East and Africa."
Despite a drop in market share, Nokia continued to be the worldwide leader in mobile device sales as it accounted for 23.9 % of global sales. The second quarter of 2011 was the low point for Nokia, and the third quarter brought signs of improvement. Dual-SIM phones in particular, and feature phones generally, maintained Nokia's momentum in emerging markets. Heavy marketing from both Nokia and Microsoft to push the new Lumia devices should bring more improvement in the fourth quarter of 2011. However, a true turnaround won't take place until the second half of 2012.
Samsung became the No. 1 smartphone manufacturer worldwide in the third quarter as sales to end users tripled on year to 24 million; sell in was high as the channel built inventory. Samsung was the No. 1 smartphone manufacturer for the first time, ahead of Nokia in Western Europe and Asia. Gartner attributes this to the strong performance of Samsung's Galaxy smartphones, which now cover a broad range of prices, and a weaker competitive market.
Apple shipped 17 million iPhones, an annual increase of 21%, but down nearly 3 million units from the second quarter of 2011 because of Apple's new device announcement in October. Gartner believes Apple will bounce back in the fourth quarter because of its strongest ever preorders for the iPhone 4S in the first weekend after its announcement. Markets such as Brazil, Mexico, Russia and China are becoming more important to Apple, representing 16% of overall sales and showing that the iPhone has a place in emerging markets, especially now that the 3GS and 4 have received price cuts.
The Android OS accounted for 52.5% of smartphone sales to end users in the third quarter of 2011, more than doubling its market share from the third quarter of 2010, Gartner said.