Alex Zaharov-Reutt
Friday, 31 October 2008 21:09
Opinion and Analysis
Page 1 of 3
Mobile phone sales dropped by 0.4% over Q2 08, and despite shipping
299m handsets in Q3 08, analyst firm IDC says this result is thanks to
a “dismal economy” when Q3 sales are traditionally much, much higher.
Uh-oh... the economic crisis is causing people to spend less as they worry and wonder about the future, and mobile phones are just one of the many areas feeling the pinch.
IDC says that the “third quarter of the year has historically been a ramp-up quarter as manufacturers load their sales channels with handsets in preparation for the holiday season, producing year-over-year growth rates as high as 20% as a result.”
However, “this year has not witnessed a similar ramp up, largely due to the current economic situation.”
Ryan Reith, senior research analyst with IDC’s Quarterly Mobile Phone Tracker explained: “Handset vendors felt the pressures of the dismal economy in the third quarter of 2008, and as a result, shipments and revenues were down almost across the board. There were two signs of hope from two major players during third quarter earnings.
“First, as highly anticipated and now confirmed, Apple reported an extremely successful quarter and noted it is on pace to surpass its initial 2008 shipment estimates.
“Second Nokia's CEO Olli-Pekka Kallasvuo announced a positive outlook for 2008 despite a tough third quarter. This offers reassurance to all industry players as Nokia has been a clear leader in the mobile phone space for quite some time,” continued Reith.
IDC says that average phone prices are now dropping as marketing campaigns “ramp up” with competition for sales and buyers set to sizzle in 2009 in the hope that sales sizzle, too – in what is expected to be a slow year.
Ramon T. Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends said: “While the overall mobile phone market registered small growth compared to last year, the market for converged mobile devices (commonly known as smartphones) posted strong gains.
“The worldwide release of the Apple iPhone 3G earlier this summer marked a major step not only for Apple, but also raised the profile of converged mobile devices as a whole. Add on top of that the attention generated by the Google-powered G1, and the converged mobile device suddenly finds itself as the device sought by both seasoned and first-time users."
So, what does IDC say happened around the world? Please read on to page 2.
