Saturday, November 15, 2008

Nokia Predicts a Fall in Global Mobile Phone Market in 2009

Mobile phone manufacturer Nokia has predicted a substantial drop in the mobile phone sales globally in the fourth quarter of 2008 and in 2009, amidst a global economic recession. Nokia has also revealed that global mobile phone sales this year would be 1.24 billion, even though 1.26 billion was previously estimated. Nokia also thinks that handset market as well as the mobile phone equipment market will fall next year, because of the global credit crunch in what would affect the consumers’ purchasing ability.

Mobile phone component prices are being fueled up due to strengthening U.S. dollar and yen. At the same time, economic slowdown in the emerging markets is affecting spending ability of the consumers.

ZD Net reported:

“In the last few weeks, the global economic slowdown, combined with unprecedented currency volatility, has resulted in a sharp pull back in global consumer spending,” Nokia said in a statement.

The strengthening U.S. dollar and yen are pushing up component prices for handset manufacturers, while weakening currencies in emerging markets are hurting the purchasing power of consumers in Nokia’s key markets. Additionally, the 15-nation euro zone has seen its economy shrink for the second quarter in a row.

Nokia, however, is hopeful about the developing markets, but the developed markets seem not be that that much alluring. Nokia operators and distributors are decreasing their stocks in order to get over the credit crunch.

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