Q4 results to show mobile market recovery

Q4 results to show mobile market recovery

The mobile market will show signs of recovery when manufacturers reveal their results for Q4 this week, according to analysts.

The industry had a tough 2009 as recession-hit consumers around the world cut spending and delayed upgrades.

However, demand for new phones started to grow again in the fourth quarter as economies recovered.

Strategy Analytics analyst, Neil Mawston, said: ‘It will be the first quarter of growth since third quarter 2008 and it should formally signal the end of the global handset recession.’

Last month, Nokia said market volumes would rise around 10% in 2010.

‘Demand continued to recover in the fourth quarter but this remains an extremely tough market with a widening gulf between the winners and losers,’ said Geoff Blaber from CCS Insight.

Apple reports its results today (25 January), LG Electronics on 27 January, Nokia and Motorola on 28 January and Samsung on 29 January.

Analysts said Apple, which is the top profit generator in the industry, is likely to have sold up to 9 million iPhones in the fourth quarter.

LG said on Jan 13 it sold about 33 million mobile phones in October-December, compared with 25.7 million handsets sold a year earlier. The manufacturer ia now aiming to boost its mobile phone sales volume by 20%in 2010.

Sony Ericsson offered a cautious view on 2010 market conditions when it revealed its Q4 results last week (22 January), despite reporting a loss in line with expectations.

The manufacturer reported a quarterly pretax loss of £165m for the quarter ended 31December 2009.

It shipped 14.6 million phones in Q4, down from 24.2 million in the last quarter of 2008, but up slightly from 14.1 million in Q3 2009.

Written by Mobile Today
Mobile Today


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