(By Richard Holway 8.00am 17th Apr 09) Further to my 23rd Mar 09 post - Market for mobiles getting really ugly - Sony Ericsson today confirmed that its shipments of mobiles had declined 35% yoy in Q1. It also announced that 2000 jobs were to go.Yesterday, Nokia announced that it too had had an awful Q1 with a 19% yoy decline in units (at 93.2m) and a 8.5% decline in the average price per unit (to £57) all contributed to a 90% reduction in Nokia's profits.
These manufacturers are being hit by a double whammy.
Firstly, the mobile market is suffering its first global decline with a 14% yoy decline (to 255m units sold) . Forecasters now reckon 10% fewer phones will be shipped globally in 2009.
Secondly, neither manufacturer has come up with a compelling competitor in the all-important (because of its high profit) smartphone area. Apple's iPhone and Blackberry have been taking share here.
To me this is an excellent example of what is happening in the whole tech market. The market is both declining and changing fast. The market leaders are hard hit by the market decline but new, faster competitors grab market share in the newer areas. When we get out of the current economic malaise, the world will be very different but the market leaders might be too badly damaged to take full advantage.
These manufacturers are being hit by a double whammy.
Firstly, the mobile market is suffering its first global decline with a 14% yoy decline (to 255m units sold) . Forecasters now reckon 10% fewer phones will be shipped globally in 2009.
Secondly, neither manufacturer has come up with a compelling competitor in the all-important (because of its high profit) smartphone area. Apple's iPhone and Blackberry have been taking share here.
To me this is an excellent example of what is happening in the whole tech market. The market is both declining and changing fast. The market leaders are hard hit by the market decline but new, faster competitors grab market share in the newer areas. When we get out of the current economic malaise, the world will be very different but the market leaders might be too badly damaged to take full advantage.
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