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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Cell phone market fall ended in Q3: Gartner Thu Nov 12, 2009 7:41am EST Email | Print | Share | Reprints | Single Page [-] Text [+] By Tarmo Virki, European technology correspondent HELSINKI (Reuters) - The fall in the handset market stopped in the third quarter, helped by clearing of inventories of unsold phones and booming sales on the so-called grey market in countries like China, research firm Gartner said on Thursday. Handset sales saw sharp drops earlier in the year as consumers around the world cut back on spending in the economic downturn. However, most of the top handset vendors are missing out on growth as around 150 million phones this year will be manufactured on the grey market, by Chinese manufacturers without production licenses, Gartner said. This compares with the 117 million phones that LG Electronics, the world's third-largest handset maker, is expected to sell this year. Most of the grey-market phones use chips from Mediatek. Some of them are copies of models made by top vendors, using brand names like Mokia, but many are not, Gartner said. After a 0.1 percent growth in sales volumes in the third quarter, Gartner said it expected to see stronger growth in the fourth quarter, with 2009 phone sales roughly on par with 2008. "Many devices will reach the market in time for Christmas, and mobile carriers will run incentives for consumers during the holidays," said Gartner analyst Carolina Milanesi. "As many vendors and industry watchers call for a decrease in sales into the channel, our sell-through data is showing that 2009 performance will be flat rather than down over 2008." Gartner had previously forecast a fall of around 4 percent this year. Milanesi said she expected global handset sales volumes to grow 5-8 percent next year, but mostly boosted by the continuing growth on the grey market. Gartner is the only large research firm publishing data on sales to consumers (sell through), while other research firms and brokerages usually track handset vendors' sales to the operators and shops (sell in), which is easier to measure. Gartner said it expected market leader Nokia to report strong sales volumes in the October-December quarter, but to continue to struggle in the smartphones market. "Nokia should have strong end-of-year volumes as a result of good mid-tier products like the 5530 and 5230, but consumers seeking to upgrade to a high-end device may look elsewhere over the Christmas holiday sales," the research firm said. (Reporting by Tarmo Virki; Editing by Jon Loades-Carter) © Thomson Reuters 2009 All rights reserved Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: UPDATE 1-ThyssenKrupp had 2.4 bln eur FY pretax loss-report also on reuters Full Coverage: The Route to Recovery Obama tops Forbes list of world's most powerful people Full Coverage: Reuters Health Summit More Technology News Intel to pay AMD $1.25 billion, settle all disputes Activision says "Call of Duty" sets launch record | Video HP to buy 3Com for $3.1 billion Academics hope history in video games spurs interest New invention addresses lithium battery fires More Technology News... More News UPDATE 2-Cellphone market fall ended in Q3 -Gartner 3:43am EST Apple tops phone chart as Nokia, Samsung step up Tuesday, 10 Nov 2009 05:16pm EST Nokia, Samsung step up smartphone battle Tuesday, 10 Nov 2009 07:52am EST LG Electronics investing heavily in smartphones Tuesday, 3 Nov 2009 02:13pm EST Smartphone market growth slows in Q3-Canalys Tuesday, 3 Nov 2009 01:18pm EST Editor's Choice Slideshow A selection of our best photos from the past 24 hours. Slideshow Most Popular on Reuters Articles Video Mike Tyson arrested after L.A. airport scuffle | Video Get ready, America: Here comes Sarah Palin Taylor Swift makes history at Country Music Awards Billionaire Bill Gates says Wall St pay too high South Korea presses home China advantage versus Japan Blackout raises doubts over Brazil infrastructure | Video And the ugliest people are... Food: Is Monsanto the answer or the problem? 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