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Mobile phone market resurgence in 2010 predicted

Mobile phone market resurgence in 2010 predicted

Despite a recession-induced decline of 0.67 per cent in 2009, a report by Gartner has forecast a return to expansion and profitability in 2010.

The improvements in the market are expected to be instigated by the growing popularity of smartphones and the related online application stores, as well as by shorter upgrade cycles.

Although mobile phone sales actually fell in 2009, the drop has been far less severe than the 3.7 per cent decline that had been predicted at the end of 2008.

Strong sales in Western Europe over the last quarter have allowed for a resurgence in the market which went some way towards mitigating the impact of the recession.

Import sales of phones in Asian, Latin American and Eastern European nations were also partly responsible for the turnaround.

Carolina Milanesi, the director of research at Gartner, said that import sales in Russian and India had accounted for 250 million mobile phone sales in 2009.

These grey market sales are set to vanish in 2010 as countries take a tougher stance on mobiles without identifying IMEI numbers, which most administrations claim are used by terrorists and criminals to communicate without detection.

19 per cent of all mobiles sold next year are predicted to be smartphones, with lower prices and shorter minimum contracts becoming available as a result of their increasing popularity.

Category: News
Tagged: industry news

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