News | April 16, 2009

Cellphone Industry Not Immune To Recession As Handset Shipments Drop 20% In 2009

Although cellphone shipments and subscription numbers have held up relatively well during the global recession thus far, the outlook is more tumultuous for the mobile industry, reports In-Stat. Both handset sales and subscriptions will take a hit, but In-Stat expects that subscriptions will weather the financial crisis better than handset shipments.

"People that are unemployed are less likely to replace their cellphones, and businesses will not pay for cellphone subscriptions for employees they've let go," says Allen Nogee, In-Stat analyst. "Even those with existing subscriptions are more willing to ‘make do' with their existing handsets. As the wireless industry matures, replacement handsets make up three-quarters of handset sales; handset sales are now particularly vulnerable to economic contraction."

Recent research by In-Stat found the following:

  • After experiencing a 19.3% growth in subscriptions in 2008, subscription growth will fall by more than half to 8.9% in 2009 and by 6.3% in 2010.
  • Worldwide, In-Stat is forecasting a 20.5% drop in handset shipments for 2009 compared to 2008.
  • It will take until 2011 for shipments to regain robust growth, a forecasted 9.6% increase.
  • Middle East and Africa will have 75.2 million WCDMA/HSPA/HSPA+ subscriptions by 2013.
  • SC-SCDMA subscriptions in Asia Pacific will rise more than ten-fold between 2009 and 2013.

The research, "Worldwide Cellular Subscription and Handset 5-Year Forecast" (#IN0904564GW), covers the worldwide market for cellular phones and subscriptions. It includes:

  • Forecasts of worldwide cellular handset subscriptions and handset shipments, including a forecast through 2013.
  • Forecasts of handsets and subscriptions by region and technology.

For more information, visit http://email.in-stat.com/cgi-bin4/DM/y/hBQdR0Ro2mO0K560EPZB0EI or contact a sales representative: http://email.in-stat.com/cgi-bin4/DM/y/hBQdR0Ro2mO0K560EcTx0EP

The price is $2,995 (US).

This research is part of In-Stat's Cellular Infrastructure service, which provides comprehensive analysis of the components and equipment for wireless broadband and communication technologies, including the market trends and network technologies, such as micro, pico, and femtocells.

About In-Stat
In-Stat's market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology and semiconductor vendors, infrastructure and device manufacturers, service providers and media companies worldwide rely on partnerships with In-Stat's tenured, experienced staff and on our in-depth market intelligence to support critical business, product and technology decisions.

In-Stat is a strategic segment of the $9B Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.

SOURCE: In-Stat