This year the global market for mobile handsets is likely to fall by 8 percent while smart phones will continue to be in demand, according to a new forecast from Interactive Data Corporation. The fall is worse than the 2 percent drop for this year that the company forecast in December 2008.
Ryan Reith, an analyst at Interactive Data Corporation said: "though the expectation for 2009 is negative there is a chance demand will rise and hopefully sales will be back by the first half of 2010”.
Compared to 2007, last year saw growth of 4 percent which was due to buoyant sales of smart phones. Shipments grew by 22 percent while there was a drop in shipments of conventional mobile phones of 2 percent.
The Interactive Data Corporation expects a rise of 3 percent for shipments of the smart phone and a drop of 10 percent in the traditional mobile phone market.
In US and Europe, mobile phone markets are likely to fall sharply with traditional mobile phone shipments forecast to drop by a fifth this year. The shipment of Smartphone in US market is predicted to remain strong with 8 percent growth.