To: Mike Buckley who wrote (31731 ) 9/17/2000 9:44:32 PM From: Eric L Respond to of 54805 Re: Mobile handset sales worldwide >> GARTNER'S DATAQUEST SAYS WORLDWIDE MOBILE PHONE SALES REACHED 98 MILLION UNITS IN SECOND QUARTER 2000gartner11.gartnerweb.com September 14, 2000 The global mobile phone market is increasingly reaping the benefits of the proliferation of the wireless Web. During the second quarter of 2000, worldwide mobile phone sales totaled 98 million units, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). Dataquest analysts said the market is on pace to realize mobile phone sales in excess of 420 million units by the end of 2000. "Comprehensive changes are taking place in key global markets that comprise much of the annual and quarterly volume, from second generation voice-centric handsets to data-enabled devices of varying flavors, such as iMode, wireless application protocol (WAP), and so forth," said Bryan Prohm, senior analyst for Dataquest's Mobile Terminal Worldwide program. The "Big Three" handset manufacturers continue to dominate mobile phone sales. Together, Nokia, Motorola and Ericsson accounted for 53 percent of worldwide mobile phone sales during the second quarter. As the number of mobile connections continues to grow, the mobile phone market looks increasingly similar to that of any other established consumer electronics product. Dataquest analysts said that although performance remains important, brand recognition speaks louder than some transitory performance advantage, which technology brings. "Mainstream market stability should return early in 2001, after the changeover to WAP and next generation products gains momentum. Meanwhile, the shift to lower-end phones continues to lower barriers to market entry. There are more competitive share players in each major regional market now than in past years; as a result, supply has finally caught up with demand," Mr. Prohm said. << - Eric -