May 22, 2009 by James Oliver
It’s looking like April to June could be the worst quarter ever for the mobile phone industry as demand for the devices continues to stagnate. The blame has been laid partly at the door of the recession but mostly the consensus is that market saturation is behind the decline in demand for mobile phones. It stands to reason, when the world and its five year old daughter find themselves already owning a mobile phone, how are you going to sell many more?
The industry slump looks likely to continue in the short term, with demand set to stay low well into next year, as retailers work through stock piles of old phones. “We do not expect demand to get better before second half of 2010,” – stated industry analyst Carolina Milanesi.
The only glimmer of hope for the industry in the short term is the SmartPhone market, where devices such as the Blackberry, the T-Mobile G1 and, of course, the iPhone continue to defy the overall market due to their versatility and branding. This sector is expected to get an even bigger shot in the arm in the next few weeks after the launch of the new Palm Pre.
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