1/27/2009 6:29:00 PM
Device market is predicted to see a 13% dip in 2009 says research
The device market will decrease by 13% in 2009 according to Informa research released today.
The research predicts that the repercussions of the recession will be harshly felt with a sharp dip in the device market.
The Informa report warned that the slowdown of the device market is set to accelerate in 2009. It stated: ‘It could take as long as three years for the device market to get back to 2008 sales levels.’
The research also indicated that ‘subscription numbers’ would continue to fall sharply in 2009.
The research forecast that 'subscriptions' would drop to 12.7% down from 18.5% year on year in 2008 (down from 22.5% growth in 2007).
The research suggested that handset and network vendors will be the harshest hit as consumers choose not to upgrade their phones.
According to Informa’s research the impact of the economic downturn will vary regionally. In developing markets a continued growth in connections will drive up growth even if customers are buying lower end phones. In 2008 India emerged as the world’s largest market with 102 million new connections.
However, Nick Jotischky, principal analyst for emerging markets at Informa said: ‘India and other emerging markets have their own difficulties as mobile operators continue to work out how they can deliver profitability in the face of increasingly brutal competition.’