Falling prices of mobile handsets worldwide contributed to 21 per cent sales growth year-on year-in Q2 2005, Gartner reports. Every region except Japan saw sales rise, although hi-tech South Korea was becalmed.

Nokia continued its recovery by taking 31.9 per cent of the market, up from 29.6 per cent a year ago. Motorola consolidated its strong second place, grabbing 17.9 per cent share, up from 15.7 per cent a year ago. The leading two sold 60.7m and 34m handsets respectively.

The gains came at the expense of third tier manufacturers and Siemens, which saw real unit shipments fall from 10.8m to 8.89m, a dramatic dip from 6.9 per cent share to 4.7 per cent share. On these figures, analysts must question the wisdom of BenQ's acquisition of the German giant's handset division.

Emerging markets in Asia, Eastern Europe and Africa led the way. But interest in replacing trusted handsets with 3G features wasn't particularly strong, notes Gartner.

(The figures exclude iDEN handsets exclusively manufactured by Motorola.)

Overall 190.5m handsets were shipped in Q2, and Gartner predicts 780m will ship in 2005. ®

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