Technology | Media | Telecommunications

Wednesday, November 19, 2008

Greater Challenge than Mobile Phone Sales

While the cellphone industry has generally been unaffected by economic ups and downs, this recession (depression, etc.) may well be very different, according to the latest market assessment by In-Stat.

The current economic slowdown is more widespread and deeper than ever experienced during the history of the cellphone era, and has spread through Europe, Asia, and North America, the high-tech market research firm says.

The industry is currently strong, and this year is turning out to be a relatively good one, but the mobile phone sector will likely have some bumps and turbulence over the next couple of years.

"The economic crisis is still playing out, but all indications are that it will have an effect on the cellphone business worldwide, but mostly on North America and Europe," says Allen Nogee, In-Stat analyst.

In-Stat believes that it will take until 2010 before cellphone sales return to their normal growth levels. Frankly, the current economic repercussions are truly daunting -- think basic food and shelter, for the worlds many poor and disenfranchised people.

The In-Stat research covers the worldwide market for cellular handsets and semiconductors. It provides forecasts for handset and semiconductor shipments, plus revenue by region through 2012. Analysis of market conditions by region is included.

In-Stat's market study found the following:

- For the next five years, cellphone semiconductor revenue will only grow at a 3.3 percent Compound Annual Growth Rate (CAGR).

- Over 1.2 billon cellphones will be shipped this year, but the growth rate is rapidly slowing.

- The cellphone industry will be tested like never before in the next year as it deals with the impact of a poor economy and a lack of new features to promote.