Cell phone manufacturers are the first ones to feel the effects of the global financial crisis
The economic recession, provoked by the global financial crisis, is reducing customer consumption expenditure with Telecom in the world, mainly about cell phone replacement.
Cell phone sales in the world, in the 4th quarter of 2008 (4Q08), presented a reduction of about 10% if compared with 4Q07. Nokia, Motorola and Sony Ericsson were the most affected manufacturers, getting significative reductions in their unit shipments.
Samsung and LG presented growth in the quarter due to their average price product portfolios. Nokia presented a reduction in its smartphone sales, despite the sales in this segment had grown 20% in comparison between 4Q08 and 4Q07.
Rim (Blackberry) and Apple (iPhone) presented a strong growth in the period.
| Smartphones (millions) | 4Q07 |
4Q08 |
Growth |
| Nokia | 18.8 |
15.1 |
-19.7% |
| RIM | 3.94 |
6.68 |
69.5% |
| Apple | 2.32 |
4.36 |
87.9% |
Apple, in particular, was successful with iPhone 3G, which sold 6.9 million units in 3Q08 and 4.4 million units in 4Q08.
All manufacturers, that together hold more than 80% of cell phone sales in the world, presented reduction in their operational margins, and Sony Ericsson reported loss of 187 million EUR.
Nokia estimates that the cell phone unit shipments in 2009 will be 10% less than in 2008. This fall might be stronger in the first semester of 2009.
South America is the region where these effects are being felt in a less harsh way. Nokia's sales in the region presented reduction of only 0.7% in comparison between 4Q08 and 4Q07. However, the crisis effects might get stronger and reaching Brazilian cell phone exportations. In 2008, Brazil exported 23.9 million cell phones, getting a growth of 7.8% in relation to 2007 (more details).
The global crisis effects in Brazil, and its impact in costumer consumption expenditure with Telecom, aren't clear. But we can wait a reduction in cell phone sales, mainly in the beginning of 2009, due to operators caution to reduce their stocks. In Nov/08, last month with available data, cell phone production in Brazil presented fall of 4.6% in comparison with Nov/07 (more details).
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