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The Cell Phone Growth Slowdown

January 18, 2008 in Wireless Industry News

According to TheStreet, two major players – Sony Ericsson and Samsung – dropped their growth estimate for 2008, about 5% lower to around 9-10%. The not-so-great news probably doesn’t bode too well for Nokia and Motorola, with both companies set to report their fourth quarter 2007 earnings next week.

Cell Phone Growth: the Chart

Slowing growth in the cell phone industry. Doh!

But the main reason for the slowing growth is saturation – basically, after years of gangbuster growth (especially in 2004, when the growth rate was over 30%) , certain regions of the world are starting to reach that tipping point where there’s fewer people out there without a cell phone. Now that cell phones have become ubiquitous instead of just a short-term fad, there’s just less demand overall.

All hope is not lost, however – smartphone growth is still booming, thanks to devices like Apple’s iPhone that have been successful in opening up people eye’s (and wallets) to more high-end phones. At least in the USA, where most people generally pick up the “free phone” that comes with a new cell phone plan.

One other little tidbit mentioned in the article: Motorola’s expected market share is expected to drop to a little over 12%, from 2006′s share of more than 20%. That’s a big hit.

Cell Phone Sector On Hold – TheStreet

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