“Worst ever” handset sales in Q4

Q4 last year was the worst ever in the industry for manufacturers due to a dip in handset shipments in Western Europe, analysts IDC claimed.

It said 53.6 million units were shipped in Q4 last year, a 13.5 per cent drop year on year. IDC also said the industry saw three quarters of negative growth, while the number of handsets shipped to Europe dropped by 5.9 per cent last year compared with 2007.

However, the smartphone market grew by 36.1 per cent year on year representing 17.4 per cent of the total market.

IDC European mobile devices and trends research manager Francisco Jeronimo said: “A combination of weak end-user demand, currency volatility, and limited credit availability prevented the market from experiencing the usual seasonal increase in shipments. The traditional holiday campaigns and new product launches were not enough to boost sales in comparison with previous years and almost all vendors experienced a significant slump in sales.

“We expect the first half of 2009 to be very challenging as vendors and distributors grapple with clearing inventory. Should these conditions persist, the mobile phone market may not recover until the middle of 2010.

“Cost reduction and operational efficiency have become cornerstones of corporate strategy moving forward and, for some, that will include headcount reduction.”