Cell phone sales healthy despite slow quarter

PORT WASHINGTON, N.Y. According to The NPD Group, mobile phone sales to consumers in the U.S. reached 33 million units in the second quarter of 2007. This number represents a decline of nearly 17% compared to unit sales during the previous quarter; however, the second quarter is traditionally a slow sales quarter for mobile phone retailers. NPD estimates total second quarter 2007 consumer sales of $2.4 billion, which is a 14% increase since the same period a year ago.

"Despite seasonal slowness, the industry showed healthy year-over-year unit and revenue increases," said Ross Rubin, director of industry analysis for NPD. "Consumers are seeing value in moving to handsets that offer data-driving capabilities. It's not unusual to note a decline in mobile phones purchased, since it has traditionally been a lackluster quarter for consumer mobile phone sales."

Carrier stores continue to dominate handset sales with 62% of sales, followed by mass merchandisers and department stores at 9% and electronics specialty stores at 5%. Among phones purchased by consumers in the U.S. in the second quarter, 28% were free due to special rebates and promotions, while another 28% cost less than $50. Just 11% of phones purchased in the second quarter cost more than $150 and 4% cost more than $250.