Gartner Inc. recorded 315 millions mobile phones were sold in the fourth quarter of 2008. However weak consumer confidence has been blamed as the reason for the 5% drop in sales from the previous year.

The Wall Street Journal reports that although emerging as well as developed markets saw growth of 2% from the previous quarters, it was still the lowest ever recorded. Many Companies are feeling the pinch. Even with a “diversified portfolio”, as Ms. Milanesi of Nokia reported, the Companies market share fell to 37.7% in the fourth quarter from 40.4% a year earlier. South Korea’s Samsung Electronics Co. increased its market share to 18.3% from 13.4% in the year-earlier period, due to its quick response to demand for touch interfaces. LG Electronics Inc. increased its market share to 8.9% from 7.1%.

Sony Ericsson, a joint venture of Japan’s Sony Corp. and Sweden’s Telefon AB L.M. Ericsson, saw its market share fall to 7.5% from 9%. U.S. based Motorola Inc.’s market share fell to 6.9% from 11.9%, hurt by a lack of third-generation products, Gartner said. On the bright side, the mobile phone industry did see growth for 2008 as a whole. Sales to end users increasing 6% to surpass 1.22 billion units, though demand tapered off toward the end of the year.

[via Wall Street Journal]