Q1 Mobile Phone Sales Way Down, Smartphone Sales Slightly Up

Mobile phone sales for Q1 dropped 15.8 percent from last year, with 244.8 units shipping worldwide, according to a report from IDC. The culprits for the low sales include the usual suspects: world-wide recession, lack of customer demand, lack of available merchant credit, and volatile currency.

"That the worldwide mobile phone market started off 2009 with a year-over-year decline highlights just how much the economic recession has affected all industries, including the wireless market," stated IDC research analyst Ramon Llamas.

Despite the gloom, recession-defying smartphones keep on selling, up four percent year over year.

The vendors hit hardest include Motorola, who saw a 46.4 percent dip in sales from last year, and Sony Ericsson, whose sales dropped 35 percent “as several key markets moved away from mid- and high-tier devices towards low-cost devices, where the company does not compete,” according to the report.

The analysts at IDC do not see things getting much better in the near future, claiming, “We expect to see further year-over-year declines worldwide, even as some regions show signs of improvement.”

Not mentioned specifically in the report was Apple, which sold 3.79 million iPhones last quarter, 123 percent more than a year ago.

[Via All Things Digital]

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