'Don't expect historic returns in the mobile market'

19:46 12th January 2010

Mobile phone sales are likely to rise but they will not see the same soaring levels they have enjoyed in the past, an expert has said.

"Despite a projected return to growth in 2010, the times of 20 per cent growth are over because mature markets are saturated, and most growth will come from emerging markets," said Carolina Milanesi, Gartner research director.

She also said makers would be hard pressed to keep up and grow margins as average selling prices dropped.

Ms Milanesi said software, services and content will push sales much higher rather than hardware. This will push traditional mobile phone vendors to reinvent themselves to remain "at the top of their game", she said.

Her views came as Gartner said sales of mobile phones will be flat at 1.2 billion units globally this year, but smartphone sales will push revenues up 9 per cent.

The research firm also estimated sales of smartphones, which are forecast to grow 38 per cent in three years, would make up 14 per cent of total sales in 2010.

Written by Hannah James.

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