Mobile phone market to shrink this year

Mobile phone market to shrink this year

Market research firm Strategy Analytics has stated in a report that the global mobile phone market will shrink 9 percent in 2009.

This would be the first decline seen by the industry since 2001.

The report stated: “We expect the first half of 2009 to be very weak, as the industry is hit by a double whammy of slowing post-holiday shipments in developed markets and subdued demand during the normally buoyant Chinese New Year in Asia.”

SA said that as per their research, 1.08 billion handsets would be sold this year. The market saw sales of 1.18 billion units last year.

The report further said: “Retailers de-stocked and burned off existing inventory due to credit tightness, while consumers delayed purchases because of fears of a recession.”