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From: robv410/30/2009 8:29:20 AM
of 14781
 
Handset Market Set to Rebound

By GUSTAV SANDSTROM

STOCKHOLM -- The global handset market should return to growth in the fourth quarter after several quarters of declining shipments, research firm Strategy Analytics said Friday.

In its latest report on the handset market, Strategy Analytics forecast that global shipments in the final quarter of 2009 will rise 3% from a year earlier to reach 300 million units.

"We believe this will be the first time the industry has returned to positive growth since [the third quarter of] 2008, signalling an end to the handset recession after four quarters of decline," it said.

Strategy Analytics said global shipments of mobile phones in the three months to Sept. 30 fell 4% from a year earlier to 291 million units -- a significant improvement compared with an average decline of 11% for the last three quarters.

"Once again, the rate of decline slowed in comparison with the previous quarter, bolstering our belief that the industry is edging towards recovery," it said.

After several years of healthy growth, mobile phone manufacturers have struggled since late last year with falling sales as consumers cut spending due to the recession.

The expected return to growth comes after recent results from technology companies lend weight to the view that an upswing is now underway.
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