Mobile phone market takes recession hit

Vendors in the worldwide mobile phone market shipped 244.8 million units in the first quarter of 2009, or 15.8 percent fewer than the 290.8 million units shipped during the same quarter in 2008, IDC reported.

A market intelligence firm headquartered in Framingham, IDC said that the first-quarter 2009 decline was due to weak demand, currency volatility, and lack of credit for merchants as consumers and the supply chain adapt to the recession.

   "That the worldwide mobile phone market started off 2009 with a year-over-year decline highlights just how much the economic recession has affected all industries, including the wireless market," Ramon Llamas, IDC senior research analyst, said in a statement. "The market continues to adapt to the new economic reality with both vendors and retailers exercising caution to remain profitable. In some cases, this has meant holding less inventory, or even reducing headcount. Fortunately, new features and demand for phones will help the market resist the financial pressure. We expect to see further year-over-year declines worldwide, even as some regions show signs of improvement."
(By Chris Reidy, Globe staff)