Global Sales of Smartphones to Edge Up 0.8 Percent by Volume in 2009

The global sales volume of smartphones is expected to grow by only 0.8 percent to 180 million units in 2009, far lower than other institutional investors` projections of 10-20 percent, estimated Richard Windsor, Analyst in Nomura Securities of Japan.

Windsor stressed that the global market for handsets is very likely to decline for the first time this year, after having enjoyed strong growths over the past six consecutive years. Other international industry leaders such as Nokia, Samsung and Sony Ericsson, have also kept a conservative attitude, warning that the market may probably decline by over 10 percent in the year, in a sharp contrast to other insiders` optimism.

Windsor noted at MWC (Mobile World Conference) 2009 that the segment for smartphones is expected to stall in the year, due partly to the widespread economic recessions and partly to comparatively high selling prices of such products, which are unfriendly to most consumers who generally suffer personal income decreases at present.

He added the first sales slowdown in the handset market occurred in the fourth quarter of last year, when consumer demand significantly shrank and retailers moved to reduce inventories, giving a warning that the industry may face depression this year. Hence, he recommended that smartphone makers should adjust downward their sales projections and work out correct operation strategies to counter the bad time in the year.

Coincidentally, Windsor indicated, Nokia and Microsoft will still dominate the segment for mobile operating systems with their Symbian and Mobile Windows, respectively, this year. But, emergence of Google`s Android will very likely break the status in the line, as the operating system has piqued intense interest of smartphone brands since its debut last year.

Source: CENS