Mobile phone market hits ‘the great moderation’

By | February 11, 2014

Scalper1 News

After four straight years of double-digit growth, the mobile phone market has hit a wall. Excluding Chinese vendors, the industry is likely to see little or no revenue growth this year, Raymond James analyst Tavis McCourt said in a research note late Monday. “The great moderation of mobile device growth is upon us,” McCourt wrote. Revenue growth from publicly traded mobile phone vendors, which account for 70% of the industry total, slowed to 7.3% year over year in the fourth quarter, the slowest pace since the recession, McCourt said. Based on the companies’ first-quarter guidance, revenue growth is likely to dip to 1.8%, he said. “In aggregate, we believe the industry ex-Chinese vendors is likely to see little to no growth this year,” he said. “Chinese-based vendors now account for 30% of industry revenue and 40% of industry volumes, and although growth is still elevated at Chinese-based vendors, we suspect… Scalper1 News

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