The increase can be attributed to a growth in operator subsidies, strong competition between companies and a larger number of low-cost budget models.
"In terms of total volume it was a record quarter, which is not overly surprising, but reaching a new peak was,'' SA director of wireless device strategies Neil Mawston told Information Week. "Nokia and RIM [Research in Motion] were pretty flat year over year and quarter over quarter."
However, while the company says revenue and pricing have continued to rise, the growth wasn't as much as during previous quarters. Companies "are under a little bit more pressure so the growth they're experiencing is not quite as strong, so the market is seeing more competitive pricing".
Nokia grabbed 40% of the market, with its average smartphone price dropping 21% year over year. While Mawston said the lower prices have increased sale numbers, revenue could suffer overall as a result.
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