Global sales of handsets topped 1.35-1.45 billion units in 2010, with smartphones reaching 270-280 million units for a penetration rate of 20%, according data released by market research firms. For 2011, sales of smartphones will increase to 400-420 million units, accounting for 25-27% of total handset sales of 1.45-1.55 billion units projected for the year. Smartphone sales will increase 40-50% versus just 10% for the overall handset market in 2011.
With the popularity of smartphones, handset makers and related component suppliers will see stronger-than-expected sales in the first quarter of 2011, which is historically the annual low season, especially since a supply shortage has delayed some fourth-quarter shipments to early 2011. Handset makers indicated that order visibility is decent at the moment as major vendors such as HTC, Nokia, Samsung Electronics, LG Electronics and Motorola are all scheduled to unveil new products in the first quarter.