Weak Cellular Signal In 2001 First-Ever Drop In Sales The Internet was expected to give lift to cell phones, but forecasts too optimistic.(INTERNET & TECHNOLOGY)

Byline: SARAH Z. SLEEPER

If 2001 sealed the coffin on irrational faith in all things Internet, it also blew away the myth of the twin tornado for cell phone sales in markets around the world.

The myth goes like this: From 1998 until 2000, the Web and cell phones were growth businesses. Shouldn't the combination of the two, the mobile Internet, have twice the whammy?

Unfortunately, no, says Dan Steinbock, professor and author of the book "The Nokia Revolution." The tornado was thwarted by a disintegrating global economy, he says.

Add the fact that by the end of this year, cell phones still can't access Web content adequately, and carriers had raised fees. Throw in overly optimistic sales forecasts from handset makers, and the result was a messy year for handset sales.

Worldwide sales growth, which until 2001 kept up at a double-digit clip, dropped to 5%. Expectations of 430 million units sold were reset to 380 million or so. For the third quarter of 2001, 94.4 million units were shipped, down 9% from the same quarter last year, says Gartner Inc.

Next year could be better, say analysts. Replacement sales could pick up if better data services and content are offered. New users could be courted, especially in China and Latin America, where new wireless networks are being built.