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Handset prices continue to drop

NEW YORK-A new study finds that the average selling price for mobile phones continues to drop, a situation that could put added pressure on the world’s top mobile-phone makers.

Research firm FastTrack Wireless Inc. found industry average selling prices fell an average of more than 8 percent from the second quarter compared with the third. The firm said the declines likely will continue as demand for advanced phones remains unclear and consumers continue to expect cheap phones.

Further, FastTrack said contract manufacturers and original design manufacturers allow smaller handset makers to share the productivity and technology gains enjoyed by the large manufacturers.

The firm said handset sales should increase nicely over the coming year, but that the key to industry health will be stabilization in pricing not more units.

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