NEW YORK, Dec 3 (Reuters) - U.S sales of new-generation,
digital wireless phones for the first time outpaced sales of
traditional, analog phones during the first three quarters of
1998, a market research firm said Thursday.
Digital wireless phone sales totaled 10.1 million units
through the first three quarters of 1998, while analog phone
sales reached 7.9 million units, according to a study by
Dataquest, a unit of Gartner Group Inc. (NYSE:IT)
"The analog-digital crossover, at last, signals the
market's protracted transition to second-generation digital
phones a full six years after they were first introduced in the
United States," said Dataquest analyst Matt Hoffman.
Nokia (HELS:NOKS.A), Finland's telecommunications equipment
maker, saw its share of the U.S. digital phone market surge to
a leading 40.3 percent in the first nine months of 1998,
compared with 19.8 percent market share in 1997, Dataquest
said.
Nokia's strong market share gains were driven, in part, by
its connection to AT&T Corp.'s (NYSE:T) successful new wireless
pricing plan called Digital One Rate, Dataquest said.
AT&T's Digital One Rate pricing plan, and similar plans
introduced by rivals, have helped spark consumer interest in
new-generation wireless phones, which offer broader reach,
better clarity and more sophisticated features than
traditional, wireless phones, industry analysts have said.
Schaumburg, Ill.-based equipment manufacturer Motorola Inc.
(NYSE:MOT) saw its market share nearly double to 11.5 percent from
6.3 percent last year.
"The fast risers, Nokia and Motorola, have grown with
strategies to diversify into all digital product segments,"
Hoffman said.
Meanwhile, Sweden's Ericsson (SWED:LME.B) and San Diego-based
Qualcomm Inc. (NASDAQ:QCOM) saw their market share shrink as the
companies targeted niche markets, Dataquest said.
Ericsson now holds about 20.6 percent of the U.S. market,
down from 41.3 percent in 1997, while Qualcomm controls about
8.2 percent of the market, compared with 17.4 percent last
year, Dataquest said.
Copyright 1998, Reuters News Service |
