As consumers continue to watch their budgets during unsure economic times, the cell phone market from the month of January to March shrunk 10 percent, which is the fastest shrinking pace ever, Strategy Analytics researchers said.
"Our records indicate that Q1 2009 represented the fastest ever decline in annual shipment growth since the modern cell phone industry began in 1983," the group said in a statement.
This marks a troubling trend that has hit the PC and tech industries across the board, as consumers are more likely to try and save money instead of buy new gadgets.
"The global economic downturn caused the weakest ever growth rate since the modern cell phone industry began in 1983," Strategy Analytics analysts Neil Mawston said in a statement. "The global economic recession amplified the effects of a seasonally low quarter, as retailers de-stocked inventory and consumers delayed purchases because of financial fears."
Strategy Analytics believes around 245 million mobile phones were shipped during the first quarter of 2009, with 282 million phones shipped during the same time period last year.
Furthermore, Nokia remained the top phone company during the first quarter, shipping as many as 93.2 million phones, dominating 38 percent of the global phone market.
Even though mobile phones have struggled, the sale of smartphones -- which has increased year-over-year -- continues to issue strong sales numbers, the research firm said. Nokia has had trouble selling smartphones to the North American market, but could further increase its global market share if it's able to rack up solid sales numbers for future smartphone releases in the U.S.
