2008 Proves To Be Challenging For Mobile Phone And Handheld Vendors In Malaysia, says IDC

Kuala Lumpur, October 29, 2008 – According to IDC's Asia/Pacific Quarterly Mobile Phone Tracker , 2Q 2008, the total mobile and handheld units shipment, excluding parallel imports, in Malaysia will grow by 2.3% in 2008 to reach 4.8 million units, even though the mobile subscriber base is forecast to expand by 10.1%. Despite the slow growth forecasted for this year, IDC is optimistic that the compound annual growth rate (CAGR) for mobile phone and handheld units shipment in Malaysia will reach 5.3% over the next five years, reaching 6.0 million units by 2012.

Creeping inflation and the hike in petrol price in June 2008 had largely contributed to the slow growth of mobile phone and handheld shipments in Malaysia. Chua Fong Yang, IDC's Telecommunication Research Associate Analyst for Malaysia said, "The demand for traditional mobile phones slowed down immediately after the Malaysia government announced the 40% increase in petrol price. Phones with a lower price band are particularly impacted as people are prioritizing their purchases due to the rising prices of necessity goods.”

IDC predicts that over the next five years, the growth of converged mobile phones in Malaysia will outpace the growth of traditional mobile phones . The 2008 to 2012 CAGR for converged mobile phones is anticipated to reach 10.1%, compared to the 3.3% for traditional mobile phones. The declining Average Selling Value (ASV) price of converged mobile phones will help to drive the adoption rate of converged phones among mobile subscribers.

In addition, the nationwide implementation of Mobile Number Portability (MNP) will provide mobile phone and handheld vendors with a new platform to market and sell their products. “The partnership between mobile vendors and mobile operators is inevitable since mobile operators are expected to bundle converged devices together with their voice packages to encourage mobile subscribers loyalty to their mobile network, similar to those offered in Australia, Hong Kong and Singapore”, added Fong Yang.

For more information about this research, "IDC's Asia/Pacific Quarterly Mobile Phone Tracker" (Doc# IDC_P9784), kindly contact Elizabeth Shunmugam at +603-2169-7536 (email: eshunmugam@idc.com.

For media inquiries, please contact Belinda Yap at +603-2169-7521 (email: byap@idc.com), or Gowri Mohanadas at tel: +603-2169-7533 (email: gmohanadas@idc.com).

-ENDS

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 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 44 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 .

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