Replacement Handsets Representing Three Quarters of the Handset Market are Particularly Susceptible to Recession

May 05, 2009 08:00 AM Eastern Daylight Time 

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--The global recession will make the next two years unusually difficult for the cellphone industry, reports In-Stat (http://www.in-stat.com). Subscription growth is slowing, so roughly three quarters of handset unit sales are expected to be replacement models, a discretionary purchase that can be delayed in times of economic hardship. The market's eventual recovery will be influenced by technical advances.

"Revenues will recover more rapidly than shipments due to sales of cellphones with new technology (LTE and TD-SCDMA) that command higher prices," says Allen Nogee, In-Stat analyst. "The increased penetration of higher-priced smartphones, particularly in the US, will speed revenue recovery as well."

Recent research by In-Stat found the following:

• Handset shipments will decline 20% in 2009.
• LTE will drive $1.3 billion in North American handset revenue in 2013.
• Asia Pacific will see the slowest handset shipment growth among geographic regions over the next 5 years.

The research, "The Recession Reshapes the Worldwide Cellular Handset 5-Year Forecast" (#IN0904433WH), covers the worldwide market for cellular phones. It includes:

• Revised analysis using new data about the current economic downturn.
• Forecasts of global mobile phone shipments, revenue, and average selling price by region and technology.
• Comparisons with previous forecasts and discussion about the effects of current economic conditions.

For more information on this research or to purchase it online, please visit: http://www.instat.com/catalog/wcatalogue.asp?id=66 or contact a sales representative: http://www.instat.com/sales.asp

The price is $2,495 (US).

About In-Stat

In-Stat's market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology and semiconductor vendors, infrastructure and device manufacturers, service providers and media companies worldwide rely on partnerships with In-Stat's tenured, experienced staff and on our in-depth market intelligence to support critical business, product and technology decisions.

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