Affordable smart phones buck up wireless industry
April 20, 2009
After earnings reports last week from wireless phone makers Nokia and Sony-Ericsson showed plummeting sales of mobile handsets, the industry is watching hopefully to see how well moderately priced handsets are faring.
According to IDC's quarterly mobile phone tracker for the fourth quarter of last year, mobile phones shipped fell by 16 per cent to 2.98 million units in 2008. However, the number of smartphones - which combine a cell phone with wireless internet capabilities - increased by 8 percent and could rise another 8 percent this year, PCWorld reported.
The recession has pushed up prices for mobile phones and slowed adoption of high-end smartphones like Apple's iPhone, according to the IDC report. Shipments of iPhones dropped 27 per cent quarter-on-quarter, the report said.
A market analyst said more affordable options will continue to provide growth in the market and smartphones inthe $49 per month price range should do well in 2009, the news source reported.
"It's difficult to imagine anyone giving up their mobile phone despite growing negativity in the economy," the analyst said, according to PCWorld.
"However, it is likely some consumers on higher plans will start cutting back on their mobile spend when it's time to renew their contract," he said.
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