Recession Causes Mobile Phone Sales Slide
Date: Wednesday , December 31, 2008
Even their electrifying designs at affordable rates have failed to draw the crowds as consumers maintain a tighter grip over their spending.
Amidst the recession, the mobile market has retraced the steps of the market during the dot com bust, which was a time when mobile sales had slid down. Though there is a worldwide growth of around 12 percent over last year, the sales growth has slid down in comparison to the 16 percent growth rate in the last fiscal. Adding to the gloomy situation, the world’s top mobile phone maker Nokia and other analysts have also warned of a further dip in the sale. While the handset market volumes are expected to fall by more than five percent next year, Nokia expects its market share to rise, with its stock surging by four percent to €11.02.
So, to tackle the upcoming ordeal there is a surge in the retrenchment measures adopted by mobile companies. In fact, in the most recent cases Nokia has pushed out 600 of its employees while Motorola issued the pink slip to around 100.