Who would have thought that cell phone sales and contracts would decline by nearly 20% since 2008 to 2009? I always thought that cell phones would continue to rise in popularity until pretty much everyone owned one. However, due to the economic crisis, In-Stat research firm conducted a study and found that cellphone sales would steeply decline when compared to last year’s growth.
Global sales of cell phones are expected to drop by nearly 20.5%, and contracts are expected to only have 8.9% growth, as opposed to 19.3% growth in 2008. These two stats are directly related to each other. If fewer people are buying new phones, then less contracts are likely to be inked. Cellphone manufacturers make a lot of money because people like to have shiny, new cell phones as often as possible. If people are deciding to take care of their cell phone and try to have it last for as long as possible, sales are going to go down.
Similarly, people are going to try and stick with their carrier for the full two years without terminating the contract and having to pay extra fees. Interestingly enough, In-Stat predicts contract sales to decline to even 6.3% in 2010, but steady itself out and even grow in 2011 with 9.6% growth. It looks like In-Stat isn’t being too optimistic on the whole economy situation, as they are predicting the only good time will come by 2011.
Personally, I can go either way on this one. I can see cell phones growing due to people not taking as good care of them and their love for new cell phones will overpower their willingness to save money. Yet, I do see how the economy can play a serious role in preventing good, solid growth in the cellphone department. Hopefully, the economy straightens itself out and people continue spending money on cell phones, contracts, and other gadgets.