Shipments of mobile devices to wireless service providers are expected to grow by a meagre 4% in 2009, the lowest growth rate in five years, IDC Canada's Mobile Device Tracker latest forecast reveals.

March 18, 2009

Toronto, Ontario, March 18, 2009 – "IDC expects a precipitous decline in shipments to the channel this year," said Kevin Restivo, lead analyst for IDC's Mobile Device Tracker in Canada. "The main culprit is the weaker Canadian economy which will give consumers and businesses reason to pause before ordering a new handset. This in turn will lead to lower demand for handsets from manufacturers."

IDC previously expected the overall mobile device market to grow 6.6% this year. Lower confidence on the part of consumers means more people will use their current handsets for longer periods of time.

The hardest hit part of the market will be traditional mobile phone segment which is expected to shrink by 5% this year compared to 2008.

The converged mobile device market will save the overall market from a shipment recession; it should grow by 21%. However, the predicted growth figure represents a considerable drop from last year's actual shipment figures.

IDC believes the market for converged mobile device, more commonly known as smartphones, is set to drop too. The price of some devices and the cost of a data plan will cause many to delay converged mobile device adoption plans.

On a global level, IDC has predicted a very rough 2009 for the worldwide market; the market will drop by -8.3% this year.

Globally, IDC has cut growth expectations for the smartphone market to 3.4% from a previous growth expectation of 8.7%. The notion that this segment will remain in positive growth while the industry expects an 8.3% downturn speaks volumes about the potential upside for these devices when the market turns.

Mobile Phones - These small, battery-powered, voice-centric devices utilize operator-provided cellular/PCS air interfaces for voice communication. They are designed primarily, in both form factor and feature set, for a compelling mobile telephony experience, but may also include text-messaging capability. Mobile phones may include a headset jack for hands-free operation as well as a variety of features, such as personal information management, multimedia, games, or office applications.

Converged Mobile Devices - A subset of mobile phones, converged mobile devices feature a high-level operating system that enable the device to run third-party applications in addition to voice telephony. Examples of high-level operating systems include Android, BlackBerry, Linux, Mac OS X, Palm, Symbian, and Windows Mobile. Converged mobile devices share many features with traditional mobile phones, including personal information management, multimedia, games, and office applications, but the presence of a high-level operating system differentiates these devices from all others.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

Contact

For more information please contact:

Steve Symonds
Marketing Coordinator
Phone: (416) 673-2260
E-mail: ssymonds@idccanada.com