By Allen Tsai | Wed Apr 15, 2009 9:17 am |
High-tech market research firm In-Stat cautions that worldwide mobile phone shipments are expected to drop by more than 20 percent this year, due to the global financial crisis.
The Scottsdale, Ariz.-based company is forecasting a 20.5 percent drop in handset shipments for 2009 compared to 2008."People that are unemployed are less likely to replace their cell phones, and businesses will not pay for cell phone subscriptions for employees they've let go," said Allen Nogee, an In-Stat analyst. The company expects shipments to regain robust growth, forecasting a 9.6 percent increase, by 2011. Subscriptions will weather the financial crisis better than handset shipments. After experiencing a 19.3 percent subscriber growth last year, In-Stat expects rates to fall 8.9 percent, more than half, in 2009 and 6.3 percent in 2010. "Even those with existing subscriptions are more willing to make do with their existing handsets, said Nogee. "Handset sales are now particularly vulnerable to economic contraction."
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