Demand for handset solutions from global handset vendors is likely to decline at least 30% in the first quarter of 2009 as gauged by current order visibility, according to sources at handset solution providers.
The top-five branded handset vendors have all revised downward order visibility from their customers, with market watchers believing that it will still take one to two quarters to clear the current global handset inventory.
Slow end-user demand may have a significant impact on Nokia, as the top vendor had a relatively high level of inventory built up at the end of the third quarter, indicated the sources. High Tech Computer (HTC) might also see a sequential decline of 20-30% in revenues in the first quarter of 2009, the sources added.
With regard to respective markets, the chance is low for the US market to stage a major uptick in the first quarter, or even the entire year, of 2009 because of declining economic activity which has dampened consumer spending, said the sources.
Regarding handset systems, sales of CDMA handsets could be hit especially hard due to weakening demand in South Korea and the US, as well as in emerging markets, the sources added.
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