Although more people around the world have mobile phones, the global economy will force customers to tighten their belt buckles and not upgrade their smart phones, analysts warn.
Phone manufacturers suffered during the fourth quarter of 2008, and was the first time in seven years that the holiday market didn't generate double digit growth, research firm IDC said. Overall, phone shipments last year grew only 4.3 percent, with analysts blaming the poor economy.
Despite troubling sales figures from last year, research company NPD believes the smartphone market, especially touchscreen smartphones, will be able to thrive throughout the year.
In the current smartphone market, Finnish company Nokia managed to keep the top spot as company which shipped the most smartphones in 2008. Despite its lead in the market, Gartner notes, the company has a growing global pressure from competitors Research In Motion (RIM) and Apple, with global customers looking to purchase BlackBerry and iPhone smartphones during recent quarters.
Nokia has launched its latest attempt to try and cash in on the U.S. smartphone market, after numerous failed attempts easily dominated by RIM.
Nokia reportedly sold 60.9 million smartphones last year, which gave the company 43.7 percent control of the market -- down from 50.9 percent the quarter before. RIM is in second place with just 16.6 percent of the market -- after increasing its market share up from 9.6 percent with help from the BlackBerry Bold and BlackBerry Storm.
Smartphones, which were traditionally used by business people, have transitioned into a phone for everyone, especially as the cost of data plans have dropped in price. Assuming the economy continues to struggle the way it has recently, iSuppli Corp. predicts it'll grow just 6 percent in 2009, which will allow it to control 16.6 percent of the mobile phone market with 183.9 million units shipped.
