IDC: Financial crisis hits cellphone market

Compared to previous quarters, the worldwide mobile phone industry shipments fell significantly in the third quarter because of the global financial crisis, IDC said today.

In the third quarter of 2008, mobile phone manufacturers shipped 299 million handsets, up 3.2 percent from last year, and down -0.4 percent from 2008's second quarter, said IDC, a market intelligence firm headquartered in Framingham, in its Quarterly Mobile Phone Tracker report. (At right is an iPhone from Apple Inc.)

IDC said in a press release: "The third quarter of the year has historically been a ramp-up quarter as manufacturers load their sales channels with handsets in preparation for the holiday season, producing year-over-year growth rates as high as 20 percent as a result. This year has not witnessed a similar ramp up, largely due to the current economic situation."

   "Handset vendors felt the pressures of the dismal economy in the third quarter of 2008, and as a result, shipments and revenues were down almost across the board," Ryan Reith, senior research analyst with IDC's Quarterly Mobile Phone Tracker, said in a statement. "There were two signs of hope from two major players during third quarter earnings. First, as highly anticipated and now confirmed, Apple reported an extremely successful quarter and noted it is on pace to surpass its initial 2008 shipment estimates. Second Nokia's CEO Olli-Pekka Kallasvuo announced a positive outlook for 2008 despite a tough third quarter. This offers reassurance to all industry players as Nokia has been a clear leader in the mobile phone space for quite some time."
(By Chris Reidy, Globe staff)