EL SEGUNDO, Calif.-The blazing-hot mobile phone market is finally due for a cool-down, according to research from iSuppli Corp. The firm said slowing growth and falling prices will lead to a revenue decline to $109.7 billion in 2006, down 4.7 percent from 2005’s historic high of $115.1 billion.
However, the firm said that by 2009 the worldwide mobile phone market will recover back to its 2005 level of $115.1 billion in revenues.
The firm said market saturation-which is in part causing a decline in average phone selling prices-is to blame for the market slowdown.
“Low-end, ultra-low-cost mobile phones are being pushed into emerging markets in large numbers,” said Scott Smyser, director and principal analyst of communications and consumer electronics for iSuppli. “Meanwhile, at the high-end, wireless communications service providers are continuing to demand lower-cost 3G mobile phones in order to spur greater consumer adoption of 3G services. These two factors are driving down the overall ASP (average selling price) in 2005 and 2006.”
ISuppli said average phone selling prices are expected to decline to $129 in 2006, down 9.2 percent from $142 in 2005. This follows a fall of 8.5 percent in 2005 from $155 in 2004. In contrast, ASPs deceased by a mild 2.7 percent in 2004.
