Friday, November 14, 2008

Nokia: Bad forecast for Mobile Phone Demand

The ongoing global economic recession is affecting every sector. Just think of the continual reduction in oil price in the international market. $55.00 is now the current on a price and there is strong possibility that it can even go lower. So, I’m not surprised to see that Nokia has stated that there would be a decrease in demand of mobile phone in the fourth quarter. But the only reason for the slowdown of the month of mobile phone is the global economic recession and there are very few chances that this economic conditions will improve in the short term.

Xinhua reported:

Nokia says global demand for mobile phones would be lower in the fourth quarter than previously forecast because of the international economic slowdown, according to reports Friday from Helsinki.

Nokia, the world's largest cell phone maker, estimated mobile phone volumes in the fourth quarter would be approximately 330 million, lower than its previous forecast.

This is a surely bad news for mobile phone makers but I think that there is still a lot tougher room for growth in the mobile phones sector because most people in Asia and Africa still do not own a mobile phone set. But the good thing is that most people do not consider mobile phone a luxury item anymore for desktop. Rather, they feel that it is a part of everyday necessity and an integral part of communication in human lives in our time.