World recession hits telecoms

July 16, 2016

The slumping world economy has finally exerted its drag on the telecoms industry, with the world’s largest phone manufacturer, Nokia, expected to report the lowest quarterly revenue growth since 2004.

However, according to ABI Research, all may not be as bad as it seems.

The research company predicts that handset sales for all companies will improve during the second half of this year, boosted by impressive product launches such as the recently launched iPhone 3G and the Samsung Omnia/Instinct.

Research in Motion (RIM) is expected to soon release new models of the Blackberry, whilst Samsung and Nokia are also likely to unveil their best phones yet.

This year’s new handsets are tending to make current technology such as mp3 players, GPS and cameras, easier to use, rather than integrating new technologies.

ABI says that ‘iconic’ new phone models, such as the 3G iPhone, encourage consumers to think about replacing their current handset for improved features and better usability.

If sales do pick up, it will be in line with historical trends, with the second half of the year always outperforming the first in terms of handset sales.

Although positive, ABI’s research director Kevin Burden is urging some caution.

Burden said that although sales will improve in Q3 and Q4, the improvement is unlikely to be as high as in previous years because of the current worldwide economic slowdown.