Consumers Shun 3G Phones

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"Users' lack of interest in 3G services, such as video calling, meant that users preferred 2.5G GSM phones to 3G handsets" said Carolina Milanesi, principal analyst for mobile terminals research at Gartner.

Sales of mobile phones Latest News about mobile phones have increased by 21.6 percent in the last quarter relative to last year, according to data from research firm Gartner Latest News about Gartner.

Callers in mature markets in Europe and North America are increasingly replacing their old phones. In emerging markets, demand is driven by a drop in the prices of the device.

European consumers however aren't replacing their old handsets with 3G Latest News about 3G models, Garnter warned. The models fail to offer appealing applications.

"Users' lack of interest in 3G services, such as video calling, meant that users preferred 2.5G GSM phones to 3G handsets," said Carolina Milanesi, principal analyst for mobile terminals research at Gartner.

The consumer's lackluster enthusiasm for 3G phones is a blow for network operators that have been investing heavily in high speed networks.

The positions of largest manufacturers didn't change. The top sellers Nokia Latest News about Nokia and Motorola Latest News about Motorola gained market share to 31.9 and 17.9 percent respectively. Shares for the followers up Samsung Latest News about Samsung, LG and Sony Latest News about Sony Ericsson Latest News about Ericsson saw only minor changes.

Siemens Latest News about Siemens was the only phone manufacturer in the top six that was faced with a sales drop. The company is in the process of unloading the handset making division to Benq of South Korea.

Previous quarters show an ongoing demand for new mobile phones. In the first quarter sales already increased by 17 percent, Gartner reported last May.


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