Gloom confirmed

Global markets are reeling and it was only a matter of time before the effects spread into the world of wireless. Well, unfortunately such gloom has arrived. Samsung and Nokia have officially given notice that growth within their respective companies will be stunted for the remainder of this year and possibly into next.

"The actual global market growth on a unit basis could come short of our initial forecast for 9 percent growth (in 2008)," James Chung, a spokesman for Samsung, told Reuters.
"As for next year, it is possible that the market could post a single-digit or even negative growth," Chung added.

Such sentiment was already shared by top handset maker Nokia with their top boss stating, "that the world's mobile phone market would fall in the fourth quarter and next year as an economic slowdown crimps consumer demand."

With new models being looked at as luxury items one can easily see why these top handset makers are not so bullish about their prospects. In fact here in Japan, where electronic gadgets are always in fashion there has been a shift in consumer buying patterns as reported by Japan's broadcast corporation NHK. The new trend apparently has been the selling of older mobiles at drastically reduced prices. Models that four months earlier retailed at nearly $500 US are being sold for $150 or less. Manufacturers seem to be understanding that consumers simply cannot spring for the newest or latest models.

Interesting times right now and it will be even more compelling to see how these companies respond. As alluded to in the previous post, that despite downturns there are always opportunities
for those ready to look for them.

Canadian Chris