Global mobile industry expects to lose $20 Billion

By siliconindia   |   Thursday, 18 June 2009, 15:50 IST   |    6 Comments
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Global mobile industry expects to lose $20 Billion
Bangalore: The global mobile industry is all set to lose $20 billion (about Rs 94,000 Crore) because of the fall in demand in emerging markets such as India on account of the economic meltdown. As per a study, in India, the demand dropped from 30 percent to 8 percent, while in China, the demand fell from 32 percent to 24 percent. According to the survey conducted by TNS, a market research company, the number of consumers worldwide to buy a mobile in the next six months drops from 28 percent to 23 percent in the year ago, leaving a potential black hole of $20 billion. This fall in demand is predominantly witnessed in emerging markets where handset sales are not subsidized and incomes are lower. "On top of delaying purchases, consumers are looking to cut back on their monthly spend as well, hurting service providers,"said TNS. However, the study pointed out that there is likely to be demand for new and advanced products by 2010 and the mobile handset makers need to be ready for that. "When the economic situation improves and consumer confidence is restored, the market will be flooded with buyers eager for new and exciting products," said Sam Curtis, Development Manager, TNS Technology Sector.

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