Strategy Analytics Sees Stabilizing Handset Markets

STOCKHOLM (Dow Jones)--Global telephone handset shipments totaled 273 million units in the second quarter, down 8% from a year earlier, Strategy Analytics said in a report Thursday, but added there are signs of a market recovery.


"We forecast that positive growth will return in Q1 2010," Strategy Analytics Wireless Director Neil Mawston told Dow Jones Newswires. "It does look like there is a gradual, incremental improvement in the market taking place now."
The rate of shipment volume decline slowed in the second quarter from the 14% year-on-year slump in the first quarter of the year, the research firm said.


"We believe the relative upturn in the global handset market has been driven by improved consumer confidence in some regions, such as China, and by partial restocking of some retailers' depleted supplies," it said.


"These factors indicate to us that the global market is showing signs of stabilization and the worst of the handset recession may be behind us," it added.


Strategy Analytics forecast 290 million handsets to be shipped worldwide in the third quarter 2009, for an annual decline of 5%.

"By the time of the 2009 Western holiday season, top-five laggards Motorola and Sony Ericsson will have brought a number of new devices to market, and aggressive promotional campaigns from other vendors and operators should spark renewed interest among consumers," it said.

Market leader Nokia Corp's (NOK) market share fell to 37.8% from 41% in the previous year, as shipments declined in all regions except China, Strategy Analytics said. Still, it said the company's sales of smartphones such as the 5800 and E71 were relatively healthy.