Economic Crisis Likely to Impact Mobile Phone Industry

(Top News, 18 Nov 2008)

While the cellphone industry has generally been unaffected by economic ups and downs, this recession may well be very different. According to market research firm In-Stat, the current economic slowdown is more widespread and deeper than ever experienced during the history of the cellphone, and has spread through Europe, Asia, and North America. The industry is currently strong, and this year is turning out to be a relatively good one, but the cellphone industry 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."

Recent research by In-Stat 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.

Click here for more information on In-Stat