Wednesday, April 22, 2009

Cell Phone Shipments Down 20% in 2009

With out a doubt Matt Richtel from the New York Times hit the nail on the head in his recent article "This Old Phone? Good Enough for Me." People in this challenging economic downturn, if that is what you want to call it, are pinching everywhere they can. And ultimately, a phone is a phone is a phone. If it dials out and can send a text, then it is probably good enough for today.

For cell phone recyclers and wholesalers, at least for the time-being this seems to mean that sales of used equipment are up. One thing we've noticed is that a lot of people are turning to pre-paid phones - in some cases we've seen sales from pre-paids quadruple from Q4 2008. Going month-to-month is a safe and easy change for people who have lost their job or who are insecure about committing that extra year contract.

Whether 2009 has you buying a brand-new iPhone or hanging onto that old piece with the cracked screen and duct-tape, I hope manufacturers and carriers are looking into their crystal balls to see how they can help consumers through this recession and prepare us all for a more positive outlook in 2010.

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