Smartphone popularity tails off in Q2

Smartphone sales have suffered from new touch-screen technology on mobile phones

Growth in smartphone sales slowed in the second quarter of 2008, according to the latest figures from analyst firm Gartner.

While smartphone sales have grown by nearly 30 per cent in Western Europe year-on-year, the sales are at a slower pace than in 2007, Gartner said in its report.

The current economic environment is slowing consumer spend and limiting replacement purchases, but Gartner said that smartphone sales have also suffered from new touch-screen technology on mobile phones.

However, the analyst expects smartphone sales to pick up again later this year, especially due to the introduction of the new iPhone 3G.

"Wider availability of new touch smartphone models, together with the global introduction of the iPhone, will help sales of smartphones return to stronger growth in the third quarter of 2008," said Gartner analyst Roberta Cozza.

Apple's market share of smartphone sales decreased this financial quarter as consumers held off purchasing the first-generation iPhone before the arrival of the iPhone 3G in June, explained the report.

This will change in the second half of 2008 when Apple will regain a top position in the global smartphone vendor rankings.

Meanwhile, Nokia has the largest hold on the smartphone market with a 47.5 per cent share. But the firm is experiencing declining growth shown by year-over-year growth of only half the market average, Gartner reported.

"To stay competitive, Nokia will need to introduce more design variations among its N series models and keep innovating," said Cozza.

BlackBerry maker Research in Motion had a particularly strong quarter, increasing smartphone sales by 126 per cent year over year and doubling its market share. The firm came second to Nokia in terms of global market share.