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Economic Crisis Spurs Mobile-Device Shipment Contraction in 2009

The once almost unstoppable growth in mobile-device shipments and revenues is coming to a screeching halt as wireless subscribers around the globe extend the life cycles of their existing devices in response to difficult economic conditions.

Revised Mobile Devices Shipment Forecast.

In the third quarter of 2008, the mobile-device market contracted slightly, ending with 316.7 million units, down 1.1 percent from 320.4 in the second quarter, according to iSuppli. Mobile handsets, which account for the vast majority of this segment, will achieve shipments of 311 million units in the third quarter of 2008, down 0.3 percent from 312 million in the second quarter.

A check in the channel shows that manufacturers are being conservative in their sourcing and component procurement activities, and they are making efforts to reduce inventory to maintain lean and efficient operations.

iSuppli has lowered its forecast of global mobile-device shipment growth to 8.9 percent in 2008, down from 10.4 percent, which will end the year at 1.287 billion units.

Shipments in 2009 are expected to decline by 5.6 percent to 1.215 billion units.

With more than 3 billion subscribers worldwide, the growth of the mobile-device market has been driven by upgrade purchases of existing customers, Teng noted.

With the penetration of mobile handsets in emerging markets rising rapidly during the past few years, upgrades have grown to account for more than 50 percent of total mobile-device shipments in 2008. Because of this, mobile-device shipment growth has become more sensitive to the upgrade cycle.

Despite the economic meltdown and the rising unemployment rate, India will have added 9 million new wireless subscribers per month in 2008 and China's subscriber base will have expanded at a rate of 7 million new subscribers annually. First-time buyers in the emerging market are still going strong and will represent 42 percent of the mobile-device market in 2009.

Источник: Cellular news

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