According to the analyst company, Strategy Analytics, the world's mobile market is set to reduce in size by a total of 9% over the year, as the market recession takes a grip. Speaking to the Reuters website, the company said that, "We expect the first half of 2009 to be very weak, as the industry is hit by a double whammy of slowing post-holiday shipments in developed markets and subdued demand during the normally buoyant Chinese New Year in Asia."
The company predicted that 1.08 billion mobile phones would be sold this year. This would be a drop from last year's total of 1.18 billion handsets and would be the first time that the mobile phone market has encountered a drop in sales since 2001. This would be only the second time that the mobile phone market has suffed a year loss since the mobile industry began in 1983.
"Retailers de-stocked and burned off existing inventory due to credit tightness, while consumers delayed purchases because of fears of a recession," said SA.
Click to read the Reuters story