Inventory issues set to last in smart phone market


Inventory issues set to last in smart phone market

Simon Quicke

Fears that the Japanese quake would cause component shortages created a smart phone inventory build-up in the channel in the last quarter which was not totally cleared out as demand across Western Europe showed signs of fatigue.

According to Gartner's latest Q2 analysis of the smart phone market the inventory issue combined with the fragile state of the economy means both manufacturers and distributors are likely to remain cautious about building up stocks in the near future.

"We expect manufacturers and distributors to remain cautious about raising their stock levels in the second half of 2011, following the recent uncertainty on the world financial markets," said Annette Zimmermann, principal research analyst at Gartner.

In terms of analysing the state of play in Q2 from a vendor angle the clear winners were Apple and Google who each enjoyed increases in market share compared to the year before for iPhone and Android based products.

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