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Mobile phone sales drop in first quarter - May 20, 2008

Sales of mobile phones slipped 22% to 31 million units during the first quarter of the year, perhaps a sign that consumers are holding back on new phone purchases, according to a report from The NPD Group

NPD says it's the first drop since it began tracking mobile sales in 2006.

There was some silver lining to the news, as spending on mobile phones only slid 6% to $2.7 billion, with more consumers spending more on feature-rich phones.

NPD found that 17% of phones sold in the quarter were smartphones, a 10% increase from the previous year. Bluetooth was installed on 79% of phones sold and another 60% of phones sold were music-enabled.

Motorola was No. 1 in market share for handsets, but its share of the market slipped to 27% down from 35% the previous year.

Most phones, 63%, were sold through carrier stores versus 9% at mass merchant retailers. -- J.N.

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