Cell Phone Sales Expected To Grow To 1 Billion per Year by 2009

Cell phone sales will exceed one billion handsets a year by 2009 as they become the most common consumer electronics device with 2.6 billion people using one by then, according to a survey published on Wednesday.

Around 1.04 billion cell phones will be sold in 2009, up from an upwardly revised estimate of 779 million this year and 674 million handsets in 2004, research group Gartner said.

The Asia Pacific region is seen as becoming even more important, with one out of every three mobile phones sold in the area in 2009, up from one in four this year.

“China and India alone will account for nearly 200 million units in 2007, with the Indian market surpassing China in 2009 to reach 139 million units,” Asia Pacific analyst Ann Liang.

Vendors including Finland’s Nokia, U.S.-based Motorola and Samsung Electronics from South Korea will generate combined revenues of $1.7 billion in 2009.

The average price per cell phone will slip to $161 in 2009 from $174 in 2004, the study said, even though the handsets will have more memory and better screens and cameras than current models.

Gartner raised its 2005 forecast by 29 million phones to 779 million after a much stronger than expected start to the year, mainly driven by demand in developing markets but also by consumers replacing their old handset with a more advanced model with a big color display, camera and a fast 3G connection for quick downloads of pictures, video and music.

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