Cell Phones – Exceeding Expectations

Most worldwide cell phone marketers were predicting that sales would be flat in the second quarter of 2004, however, sales were unexpectedly brisk. Sales of cell phones were also up 35 percent over the same quarter in the previous year.

More than 156 million cell phones were sold from April to June, with a surprising number of those phones being sold in Latin America. Latin American consumers jumped into the cellular market, enticed by lower prices and special offers from cellular service providers. This caused cellular phone sales in Latin America to jump an astounding 20 percent during the quarter.

Price wars between European cellular companies has also helped to increase sales of cell phones throughout Europe. When Hutchison reduced prices in Italy and Britain, other companies quickly followed suit.

Sales growth in the United States is attributed to customers making phone upgrades. Attracted to new cellular phones with built-in cameras and color display, as well as a variety of special offers on the newest phones, US consumers are jumping on the wireless wagon.

According to a research company, cellular telephone sales in the Asia-Pacific region were down slightly. It would appear that consumers in that region are waiting for anticipated price reductions and subsidies before purchasing new cell telephones.

Some experts speculate that if the market holds, 2004 cell telephone sales could reach 650 million—10 percent more than predicted at the start of the year.

Also see; cell phones.

Author Notes:

Jack Adams contributes and publishes news editorial to http://www.cell-phones-n-plans.com. A cellular phone industry resource that features service plan comparisons, cellular phone reviews and articles.