KUALA LUMPUR, 5 MAY 2009 – Converged mobile phone shipments are expected to fall this year, according to analyst firm IDC Malaysia.
“Results from IDC's Asia/Pacific Quarterly Mobile Phone Tracker, quarter four 2008, indicate that the converged mobile devices (also known as smart phones) shipment in Malaysia dropped by three per cent sequentially in the fourth quarter of 2008, but shipments for the full year 2008 grew slightly to reach 1.2 million units,” said IDC Malaysia associate analyst, telecommunications research, Chua Fong Yang.
“With the ongoing global economic slowdown, IDC foresees the overall converged mobile devices shipment in 2009 declining as consumers remain prudent in spending,” said Chua. “The market stayed afloat with strong consumer demand for data-centric converged mobile devices, which continued to beat market expectations by growing 80 per cent year-on-year, while voice-centric converged mobile devices declined by nine per cent.”
Malaysians shift to data-centric devices
“From tracking the market, IDC notes a shift in consumer preference among Malaysian mobile phone users towards more data-centric converged devices offering multiple e-mail functions and wi-fi capabilities,” said Chua. “In 2008, 21 per cent of converged devices shipped to Malaysia were data-centric, as compared to 12 per cent in 2007.”
“The launch of new models by Nokia, HTC and RIM helped generate awareness and demand for data-centric smart phones,” he said. “IDC expects this segment to become more competitive in 2009 with Apple and Acer entering the Malaysian mobile market.”
“Competition in the data-centric converged mobile devices segment will mean that a price war may erupt, creating an opportunity for technology laggards to embrace these multimedia phones at affordable prices,” added Chua.
"With the troubled global economy, mobile phone vendors themselves are anticipating a slower demand for mobile devices this year,” said Chua. “Without a doubt, the launch of Apple iPhone in Malaysia has ignited consumer excitement over converged devices anew, but the impact may only last a few months."
