According to Gartner, smartphone unit sales in the second quarter of 2008 rose 15.7 percent in comparison with the year-earlier period. However, the research firm noted that the subcategory's share of the cellular handset market remained flat at 11 percent. "The current economic environment continues to negatively impact the market, limiting consumer spending and replacement purchases in general," explained Roberta Cozza, a Gartner principal analyst. "In addition, smartphone sales slowed down as a result of new compelling touch technology mainly available on enhanced phones rather than smartphones." The Right Perspective During the second quarter, smartphone sales to end users in North America grew at an impressive 78.7 percent year-over-year clip, and with the region accounting for nearly 25 percent of all unit sales globally, Cozza said. However, she cautioned that we need to see these numbers from the right perspective. A total of 44.1 million cellular phones were sold in North America during the second quarter, whereas smartphone sales amounted to just 8 million units. "So smartphones are still just a tiny percentage of the entire phone market in North America, though it is still a category that is growing," Cozza said. Though North America's economic climate remains challenging, there are plenty of "people who are happy to spend money on higher-end devices," Cozza said. "Obviously, the big driver of regional growth is the iPh ...
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