Poor Economy Slows Mobile Device Growth

Dec. 4, 2008
Market research firm iSuppli has lowered its forecast of global mobile-device shipment growth to 8.9 percent in 2008 as a result of the weakened economic conditions. This is down from an earlier forecast of 10.4 percent, the number of devices shipped for ...

Market research firm iSuppli has lowered its forecast of global mobile-device shipment growth to 8.9 percent in 2008 as a result of the weakened economic conditions. This is down from an earlier forecast of 10.4 percent, the number of devices shipped for the year expected to hit 1.287 billion units. 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 the market research firm. 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.

According to Tina Teng, Senior Analyst for iSuppli, "The outlook for 2009 is even more gloomy than for 2008. With the United States, Europe, and Japan entering recessions, economic uncertainty and waves of layoffs mean that consumers are likely to spend less on mobile products." Shipments in 2009 are expected to decline by 5.6 percent to 1.215 billion units.

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