14 DAY TRIAL // “Thanks” to the ever so popular and much discussed international crisis, which is said to get much worse next year, mobile companies have had to develop survival and also profitable plans to get through such rough times. Nonetheless, the fact that sales are going to drop is well known and recognized by all companies.
Many major companies have already had to suffer considerably because of the crisis, while many others are constantly stating their concerns for 2009. However, such a development is quite normal, especially if we consider that, in 2003 for instance, the year-to-year percentage for the growth in sales was most always a double-digit figure. In addition, this growth was a consequence of the exploitation of new markets, but now that these markets have been filled, the demand will, of course, diminish considerably.
In any case, the focus point is that, as the IDC says, mobile shipments numbers will decrease by 2.2% in 2009. Even though the growth percentage for mobile sales for 2008 is supposed to be a reasonable 7.3%, next year, this figure is said to be in the negative.
Speaking of the issue, Ryan Reith, senior analyst with IDC's Mobile Phone Tracker declared that, "Nokia's announcement was the first sign of troubles to come. [...] However, the real concerns set in with announcements from the chipset vendors who supply the industry. Qualcomm, Texas Instruments, and MediaTek are among some of the suppliers announcing reductions in manufacturing for the upcoming year. There is a lot of uncertainty about how the markets will fare and inventory levels will be more of a focus point then ever before."
Furthermore, the crisis is set to affect regular people as well, so besides the fact that less money equals less mobiles bought, users may not choose to buy an upgraded edition, or a new application or service, but instead wait for “brighter” times. Nonetheless, this does not represent an operator or a mobile manufacturer's greatest fear, as does the fact that a considerable amount of users might choose not to extend their contracts once they expire, or even worse, cancel contracts altogether.
However, not all news is bad news, since the IDC is also saying that the mobile industry will be “reinstated” to its original position by 2010, and that the numbers will reach positive “heights” once again. Moreover, converged mobiles, better known as smartphones, are said to enjoy about the same success in 2009 as before, since companies have really focused on such developments in the past years. Their efforts are said to be repaid, granted these devices come with just as advanced features and the same low prices on contracts.
Making a stand on the way smartphones will fare in 2009, Ramon Llamas, senior analyst, Mobile Devices Technology and Trends, said that, "Converged mobile devices remain a much sought-after option for many consumers. [...] Users have come to realize what these devices can do beyond voice telephony, especially when it comes to running applications. Take a look at how gaming, mapping and location, entertainment, news, and social networking applications for converged mobile devices have taken off, allowing users to do much more than just make phone calls. In response, handset vendors have been building their product and applications portfolios to catch this wave of opportunity."