Reports: Forecast Calls For Handset Sales To Drop And Carrier Revenues To Slow

Cellphone Downturn 175

Two reports issued today provide a negative outlook for both the carriers and the handset makers, which will both see rougher times ahead, according to Ovum and Informa Telecoms & Media.

For handset makers, it’s worse. Mobile phone sales are expected to fall by a brutal 14 percent over the next five years to 1.04 billion devices, according to Informa Telecoms & Media (via GigaOm). The research firm was previously predicting a more rosy picture but has since revised its forecast. Between now and 2013, it expects 6.39 billion devices to be sold, compared to its previous expectations of 7.43 billion.

For the operators, it won’t be so bad, Ovum said, according to the WSJ. The consulting firm now expects worldwide operator revenues to exceed the $1 trillion mark in 2011, missing its previous estimate by a year. Also worth noting is that Ovum expects voice to remain the largest revenue driver, accounting for 69 percent of global revenue by 2014 — even though operators continue to race for data revenues. Still, growth is relative, and the mobile sector will remain fairly strong. Mobile connections are forecast to increase by a staggering 59 percent from 2008 to 2014 to reach 6.42 billion, which will translate into a global penetration of 89 percent.

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