Tuesday, August 19, 2008

U.S. mobile phones sales are going down

With the economic slowdown and lots of competition in the mobile phone market, sales are going down.
Apparently, the sales volume is going down about 13% while the sales revenue went down 2% this 2nd quarter as compared to last year's. Contradicting this is the rapidly increasing sales overseas. Nokia, for example is selling more and more phones globally.
The drop in sales in the U.S. is not surprising, especailly when you consider that most people already have phones and are bound to contracts which make it difficult to upgrade. Obviously, the same factor is applying to other countries, except that it's the other way around because most people in other countries don't already have cell phones and are not bound to any contracts.

Despite all this, companies are now selling more expensive phones than ever. New popular phones with tons of features like the iPhone and the new Blackberries are being sold at a much higher rate than before. The only problem is, prices have been slashed since the first quarter, so the expensive phones aren't that expensive anymore.

All this probably had to come sooner or later. It's just a matter of time before companies currently producing phones and selling in the U.S. are going to have to make some serious changes to their marketing plans and possibly a major shift to global marketing.

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