Economic uncertainty; Mobile sales on decline in Europe

Consumers are less willing to purchase costly handsets as the shadows of economic uncertainties are getting darker and darker in Europe, a new research suggests.
During the first Q of 2008, sales of mobile phones fell almost 16% in the Western Europe, reported by a research firm Gartner. This decline reflects general economic worries and lack of new products.

But still there is a strong demand in new emerging markets that causes global sales rose sharply. If compared to an year earlier, there is an increase of almost 13 percent and its mainly due to increasing demands in populated countries of the world like India and China.
Gartner’s report support those updates that were made by leading operators which suggesting mature mobile markets would face tough time during the next year.

Strategic Business

Nokia, during last month, reported that there was a fall of more than 40% in the US sales in the 1st Q. Nokia also notified that the cell phone industry would face a decline in sale this year.


Nokia is doing a good business in Europe but other mobile makers like Sony Ericsson and Motorola are still struggling.

Consumers are not in a happier mood across Europe and they are not responding the way different operators want them to respond.

According to Gartner, besides tight economic conditions the other contributing factor in this connection is operator’s desire to tie down customers for longer times.

Gartner believes that sales during the second half of the year will improve in Europe as there new models will be available but overall growth during 2008 will be little.

On the other hand, cell phone markets in the developing countries of the world are expanding with a tremendous pace. Hunger, unemployment, insecurity, fear and expensive mobile phone can be seen everywhere in many developing countries of the world like India, Bangladesh and Pakistan.

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