The worldwide market for mobile phones slowed slightly in the first quarter of 2004 due to expected seasonal effects, but still managed to post impressive growth year-on-year. According to IDC"s Worldwide Mobile Phone QView, worldwide mobile phone shipments decreased sequentially by 5.9% in 1Q04 and increased by 29.3% year-over-year to 152.7 million units. Additionally, the nascent market for converged mobile devices, or "smartphones," posted a sequential decrease of 5.5% but a year-over-year increase of 85.8%.
With 1.5 billion wireless subscribers expected worldwide by the end of the year, IDC expects the worldwide mobile phone market to surpass 595 million units shipped in 2004. Through 2008, the market will continue to expand until it reaches nearly an all-replacement sales scenario towards the end of the decade with over 800 million mobile phones shipping annually. According to IDC"s Worldwide Mobile Phone 2004-2008 Forecast and, sales of 2.5G mobile phones will drive market growth for the next several years with sales of 3G mobile phones finally surpassing the 100 million annual unit mark in 2007.
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