Mobile-Phone Industry Needs New-Tech BoostMobile-Phone Industry Needs New-Tech Boost

The global mobile-phone industry continues to slow as markets approach saturation, leaving new technology as the best hope for sparking growth near term. Gartner reported last week that worldwide mobile-phone shipments fell 9% in the third quarter to 94.4 million units, from 103.2 million a year ago. A sales slump in Western Europe is a big reason, Gartner analyst Bryan Prohm says. "You've got 75% to 80% penetration," he says. "There's not a huge pool of new subscribers." Prohm says most users will upgrade only after technology such as General Packet Radio Service, which allows for always-on Internet connections, and instant messaging are widely offered.

Nokia Corp. (NOK-NYSE), the market-share leader with 33% of all units sold, well ahead of runner-up Motorola Inc.'s (MOT-NYSE) 16%, is following that formula to stay on top. Last week, Nokia unveiled three cell phones, including a high-end model that offers GPRS capability, integrated digital camera, the ability to send multimedia instant messages, and support for Bluetooth, infrared, and WAP connections. It will be available by midsummer in Europe, Asia, and Africa.