Mobile phone sales set to slide in 2009: IDC

CIOL Bureau
New Update

BANGALORE, INDIA: Technology research firm IDC said in a report on Thursday that the global mobile phone sales are set to slide for the first time since 2001 as a result of the global economic crisis.


The report forecasts that total mobile phone volumes would be 1.9 per cent lower in 2009 than the 2008 levels, said a press release.

In 2001, the shipments had declined 2.3 per cent. Over the past several years, the mobile phone market has enjoyed double-digit annual growth due to an increased emphasis on emerging markets.

However, emerging market growth has been steadily slowing as these markets mature, the release said. IDC now expects worldwide growth to be just 7.1 per cent in 2008 before slipping into negative growth in 2009.


A number of major industry players, including component suppliers, handset makers, and operators have announced their concerns about handset volumes in 2009.

Most have indicated that they expect a year-over-year decrease due to the flagging global economy, the release added.

The report stated that it did not expect the downturn to continue past 2009, with the market in 2010 showing signs of revival as the economic recovery takes effect. "Converged mobile devices remain a much sought-after option for many consumers," noted Ramon Llamas, senior analyst, Mobile Devices Technology and Trends.

He added that users have come to realize what these devices can do beyond voice telephony, especially when it comes to running applications. In response, handset vendors have been building the product and applications portfolios to catch this wave of opportunity.