Mobile market 'to slow in 2009'

The continuing worldwide economic downturn will hit the mobile phone market next year, according to an analysis company.

IDC has predicted that handset shipments will be 1.9 per cent down in 2009 compared with 2008, marking the first reduction since 2001.

While the sector has seen double-digit annual growth over the past few years, especially due to emerging economies, IDC said that these markets are now maturing, meaning growth will be 7.1 per cent this year and negative in 2009.

A number of companies in the business have said that they are worried about shipments in the coming 12 months.

"Qualcomm, Texas Instruments, and MediaTek are among some of the suppliers announcing reductions in manufacturing for the upcoming year," said IDC mobile phone expert Ryan Reith.

"There is a lot of uncertainty about how the markets will fare and inventory levels will be more of a focus point then ever before."