The global mobile phone sales are expected to decline this year on account of deepening of the financial crisis and decline in consumers’ disposable income.
IDC has forecasted that the sales of mobile phones worldwide will decline this year. This will be the first ever decline since 2001, as reported by TheAge.
After recording double-digit growth for several years due to strong demand from emerging economies, the total sales of mobile phones are estimated to drop by 1.9% in 2009. Smartphones will continue to enjoy the same response from consumers as they have been getting over the last few years. Their sales are estimated to rise 8.9% next year.
With deepening of the global financial crisis, which may get even worse in 2009, the sales of mobile phones are estimated to drop significantly this year. The financial crisis has engulfed the whole world, including emerging economies, reducing the disposable income of consumers sharply; consequently, consumers will spend less on mobile phones. Many mobile manufacturers have decided to cut down their production this year after seeing uncertainty in the market. This decision of manufacturers will also negatively hit the industry.
Even the exploitation of low mobile penetration markets, which have been the main cause of tremendous growth for past few years, will not support the global mobile industry. The prime reason is filling of these markets; as a result, the demand will weaken next year. Moreover, mobile phone users will suspend their plans to upgrade their edition or integrate new services; instead, they will wait for the right time. This will also entail to low sales in coming year.
However, the fall in sales is unlikely to continue beyond 2009. The sales trend is expected to revert to its previous position by 2010. The volume sales of mobile phones will rise to the same level once again. The positive sign of revival will begin in 2010 with economic recovery.
According to a Research Analyst at RNCOS, “The sales of global mobile phone industry are forecasted to drop in 2009 due to worsening of the financial crisis. In contrast, smartphones will continue to maintain the previous growth rate as people will incline to use their new technologies. Thus, mobile phones manufacturers should introduce changes in their products to exploit this opportunity.”
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