Connect with us

Hi, what are you looking for?

New Products

Worldwide Mobile Phone Shipments To Fall in 2009

The worldwide mobile phone market felt the full effects of the economic crisis in the fourth quarter of 2008 as shipments fell 11.6% year over year, marking the first time the holiday quarter has not recorded double digit growth in seven years. This closed out a year that was dismal at best, yet overall 2008 managed to grow 4.3% over 2007. This has set the stage for what IDC predicts to be a very rough 2009, with the most recent market forecast anticipating growth of -8.3% for the year.

As consumer spending has dropped, handset manufacturers and mobile operators have reduced supply on hand, which has left chip vendors with increased inventory. Inventory management has had a dramatic impact on shipments, but consumer demand is not falling as fast. Large chip vendors have been working to restructure inventory levels over the past couple of months to deal with the expected downward year and should see some stabilization once inventories are reduced.

Mature regions such as Japan, the United States, and Western Europe all face tough times, with predictions of shipment declines ranging from -24.6% to -12.4% throughout 2009. In these markets, operators are struggling to find the right mix of marketing and device subsidy to entice consumers to spend while finances are tight. The double-digit growth rates the BRIC countries (Brazil, Russia, India, China) have seen in the past are also expected to slow to a collective growth rate of 0.3%. India still remains the bright spot within that group, while Russia is experiencing a severe cut back in consumer spending and is predicted to drop significantly.

“Expectations for 2009 were negative going into the fourth quarter of 2008. However, worse-than-expected results and a steady flow of negative economic news are indicating that 2009 will be gloomier than predicted,” said Ryan Reith, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. “Concern is understandable during this time, but note that the mobile phone market still has plenty of room to grow on a global scale and we expect recovery will begin in the first half of 2010.”

The outlook for converged mobile devices (also known as smartphones) has also been scaled back as a result of the industry’s changing dynamics. The previously stated 8.7% growth has been reduced to 3.4% as IDC expects all segments to be effected. In the years to come the industry will undoubtedly migrate more toward the converged device segment, yet in tough economic times the high price point these devices carry can tend to stand out in the consumers eye. The notion that this segment will remain in positive growth while the industry expects an 8.3% downturn speaks volumes about the potential upside for these devices when the market turns.

“The explosive growth of mobile applications adds a new dimension to converged mobile device growth, one that has resonated with users worldwide,” says Ramon Llamas, senior research analyst with IDC’s Mobile Devices Technology and Trends team. “The success of the Apple iPhone and App Store has shifted the paradigm for consumer behavior around this category, and new mobile applications pop up every day. Now that other companies are poised to launch their own mobile application sites this year, IDC expects continued growth for converged mobile devices in the face of an challenging market overall.”

U.S. and Worldwide Mobile Phone Shipment Growth by Device Type, 2008-2010

Region Device Type 2008 2009 2010
USA Converged Mobile Device 68.2% 7.9% 28.4%
Traditional Mobile Phone -13.8% -20.3% -1.2%
Total Market -4.7% -14.8% 6.1%
Worldwide Converged Mobile Device 21.9% 3.4% 22.2%
Traditional Mobile Phone 2.1% -10.0% 7.4%
Total Market 4.3% -8.3% 9.5%

Note: Percentages represent year-over-year growth.

Source: IDC Worldwide Quarterly Mobile Phone Tracker, March 2009

Advertisement. Scroll to continue reading.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Latest Products

Edifier S880DB MKII Wireless Speakers Pair Lifestyle

New Products

Edifier’s S880DB MKII wireless speakers support LDAC with Bluetooth 5.3 for hi-res streaming instead of aptX HD or AirPlay.

Technics SL-40CBT Bluetooth Turntable in Gray with Wireless Speakers Technics SL-40CBT Bluetooth Turntable in Gray with Wireless Speakers

New Products

At $899, the Technics SL-40CBT Bluetooth Direct Drive Turntable features aptX Adaptive, built-in MM phono stage and three finishes.

Monitor Audio Creator W1L Large In-wall Speakers Lifestyle without grilles Monitor Audio Creator W1L Large In-wall Speakers Lifestyle without grilles

In-Wall Speakers

Large-format Monitor Audio Creator Series W1L, W2L, W3L in-wall speakers and Mount Boxes offer reference-quality sound that hides in plain sight.

Audio Pro A10MKII-W and A15MKII-W Wireless Speakers Audio Pro A10MKII-W and A15MKII-W Wireless Speakers

New Products

Discover Audio Pro W-Generation WiFi multiroom speakers with improved sound, AirPlay 2, Google Cast, and WiiM-powered app control.

Goldmund Telos 670 Integrated Stereo Amplifier Angle Goldmund Telos 670 Integrated Stereo Amplifier Angle

Integrated Amps & Stereo Receivers

Goldmund Telos 670, Eidos Streamer/SACD and Rhea Passive speakers offer Swiss-engineered precision audio with a $200K+ price that could shock even the Alps.

Magnetar UDP800MKII and UDP900MKII Blu-ray Disc Players Front Magnetar UDP800MKII and UDP900MKII Blu-ray Disc Players Front

Blu-ray, DVD & 4K Media Players

Magnetar’s blu-ray disc players prove physical media isn’t dead with 4K UHD, hi-res audio, Roon Ready, and reference build quality that will take a...

Gift Ideas?

Ultra High-end Audio and Video 2025 Gift Guide

Floorstanding Speakers

Ultra luxury hi-fi loudspeakers, audiophile components, and a movie player you have to hear (and see) to believe.

You May Also Like

Advertisement

ecoustics is a hi-fi and music magazine offering product reviews, podcasts, news and advice for aspiring audiophiles, home theater enthusiasts and headphone hipsters. Read more

Copyright © 1999-2024 ecoustics | Disclaimer: We may earn a commission when you buy through links on our site.



SVS Bluesound PSB Speakers NAD Cambridge Audio Q Acoustics Denon Marantz Focal Naim Audio RSL Speakers