Cell Phone Demand Will Not Stabilize Until 2010

On the heels of a 4.6 fourth-quarter decline in cellular handset sales, the market remains unstable and unlikely to recover until 2010.

Mobile phones have traditionally been popular gifts to slide under the Christmas tree. But market in the final three months of 2008 was the worst ever recorded, says Gartner, looking at sequential quarter-to-quarter sales patterns.

The research firm says it doesn’t expect demand to firm again until 2010.

In the fourth quarter, mobile carriers and retailers sold 314.7 million handsets and reduced inventory as they went to prevent being caught with too many products.

Distributors continue to keep very low inventories and by the second quarter will have to restock, Gartner says. “This will help sell-in volumes,” said Research Director Caroline Milanesi. “This will not mark the start of a market recovery.”

One Response to Cell Phone Demand Will Not Stabilize Until 2010

  1. i cannot wait untill harry potter and the deathly hallows comes out in theaters. It’s too bad its going to be in 2 parts. Thats going to make harry potter nerds like my self mad.

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