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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Low prices drive second quarter phone sales up 14 pct: Gartner Reuters - Friday, August 13 Send IM Story Print HELSINKI - Sales of mobile phones rose 13.8 percent to 326 million units in the second quarter but average selling prices fell by more than expected amid intense competition, IT research firm Gartner said on Thursday. Sales of smartphones rose by 50 percent and accounted for 19 percent of shipments as more affordable data plans encouraged more consumers to try them. "Launches of updated operating systems will help maintain strong growth in smartphones in the second half of 2010 and spur innovation," Gartner analyst Carolina Milanesi said. Nokia's Symbian phones had 41.2 percent of the smartphone market, down from 51 percent a year ago as it struggles to revamp its portfolio, followed by Research in Motion's BlackBerrys, with 18.2 percent. RIM lost its position as the leading smartphone platform in the United States to Google's Android, an open platform that runs phones made by a host of manufacturers including Taiwan's HTC and U.S. phone maker Motorola. As competitors eat into RIM's North American market share, the Canadian company has increasingly been pushed to look to markets like India and Saudi Arabia for growth. But security demands made by some foreign governments have landed RIM at the center of international controversy in recent weeks. Android also overtook Apple to become the third most popular smartphone operating system globally. Milanesi predicted Apple's sales would regain some momentum in the second half as its new iPhone 4 goes on sale around the world. She also predicted that Android would overtake RIM on a global level by the end of the year. Android had 17.2 percent of the smartphone market in the second quarter, with Apple's iPhone OS taking 14.2 percent. In the wider phone market, Nokia's market share fell to 34.2 percent from 36.8 percent, while second-placed Samsung slightly increased its market share to 20.1 percent from 19.3 percent. Fellow South Korean phone maker LG Electronics lost market share, slipping to 9 percent from 10.7 percent of the market, despite aggressive price cuts. RIM had 3.4 percent of the total phone market, up from 2.7 percent. Milanesi predicted stronger pressure on prices in the second half of the year. "As you get into Q4, competition will be so strong... things are really going to get intense," she said. Gartner kept its forecasts for 2010 unchanged. It expects the overall phone market to grow by 14 percent this year, and the smartphone market to grow by 46 percent. Recommend Send IM Story Print Related Articles US-TECH Summary Reuters - Friday, August 13 "Scott Pilgrim" movie speaks to gamer generation Reuters - Friday, August 13 Low prices drive second quarter phone sales up 14 pct: Gartner Reuters - Friday, August 13 Japan satisfied by Apple moves on overheating iPods Reuters - Thursday, August 12 IBM, Oracle end lawsuit over poaching executives Reuters - Thursday, August 12 News Search Top Stories 'Rage against US' motivated Kampala bombing 'mastermind' US jobless claims jump to highest level since February GM profits surge past $1 bln as IPO looms Global equities rocked by economic recovery fears European stocks fall, London drops 0.26% More Top Stories » Related Full Coverage Personal TechnologyMobile phones & personal gadgets All Full Coverage » Most Popular Most Viewed Most Recommended Visitors attack Taiwan 'haunted house' actors Chelsea agree Carvalho fee with Real US court says Germany can be sued over Hitler-era bonds Stem cells used to treat killer skin disease Supermodel diamonds evidence meant to be 'low-key' More Most Viewed » Argentine students crack three-decade-old murder mystery 40 US billionaires pledge half wealth to charity World's first full face transplant man appears on TV Visitors attack Taiwan 'haunted house' actors Calcium supplements linked to heart attacks: study More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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