Handset market updates

This year's financial slowdown has a lot of people worried, but many analysts predict that telecom will hold up better than other industries. In the past few months we've seen increasing evidence of the recession affecting the mobile phone industry, as well. There will be, of course, some companies that will fare better than others, and there's still some good news amongst the bad. Here are some highlights we've pulled from recent news and trends.

-Like other leading manufacturers, Sony Ericsson posted major losses recently. Along with cuts in its workforce, the company is also reducing the number of handsets it will release in 2009 by 20%. We expect to see them focus on making their high-end and low-end phones more competitive. This strategy could keep the manufacturer going. Check out our “What's Hot” feature to see how Sony Ericsson's models are doing on our trading floor.

-In Western Europe, shipments of handsets from manufacturers in Q3 was down 8% from last year, but up 5% from Q2 2008. This increase is credited to the holiday season ramp-up.

-While Apple's stock has struggled this year, its sales of iPhones are strong—it's now the best-selling phone in the US. This week we're happy to have some iPhones up for auction , along with strong offers and requests on the trading floor.

-The refurbished and used phone business is one of the winners of the downturn. Increased demand from end-users who are feeling pinched by the credit crunch is driving up business in this area. AT&T is even in on the game, releasing more refurbished iPhones than ever. To get in on this trend, take a look at the trading going on on gsmExchange by searching for “Refurbished / 14 Day” “Used” and “Used & Tested” phones.

So, what do you think about the global recession's effect on the mobile phone industry? Is it changing the way you trade?

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