Converged Mobile Phone Shipments in Malaysia Expected to Fall in 2009, says IDC

Kuala Lumpur, 30 April 2009 – Results from IDC's Asia/Pacific Quarterly Mobile Phone Tracker, 4Q 2008, indicate that the converged mobile devices (also known as smartphones) shipment in Malaysia dropped by 3% sequentially in the fourth quarter of 2008 (4Q08), but shipments for the full 2008 grew slightly to reach 1.2 million units. The market stayed afloat with strong consumer demand for data-centric converged mobile devices, which continued to beat market expectations by growing 80% year-on-year, while voice-centric converged mobile devices declined by 9%. With the ongoing global economic slowdown, IDC foresees the overall converged mobile devices shipment in 2009 declining as consumers remain prudent in spending.

From tracking the market, IDC notes a shifting consumer preference among Malaysian mobile phone users towards more data-centric converged devices offering multiple email functions and WiFi capabilities. In 2008, 21% of converged devices shipped to Malaysia were data-centric, as compared to 12% in 2007. The launch of new models by Nokia, HTC and RIM helped generate awareness and demand for data-centric smartphones. IDC expects this segment to become more competitive in 2009 with Apple and Acer entering the Malaysian mobile market.

“Competition in the data-centric converged mobile devices segment will mean that a price war may erupt, creating an opportunity for technology laggards to embrace these multimedia phones at affordable prices,” says Chua Fong Yang, Associate Analyst for Telecommunications Research at IDC Malaysia.

"With the troubled global economy, mobile phone vendors themselves are anticipating a slower demand for mobile devices this year. Without a doubt, the launch of Apple iPhone in Malaysia has ignited consumer excitement over converged devices anew, but the impact may only last for a few months. Excitement over the launch of a new phone does not necessarily translate to actual sales of the device, especially in these economic times," says Fong Yang.

Source: IDC's Quarterly Mobile Phone Tracker, 4Q 2008

-ENDS

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IDC’s Taxonomy

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. Mobile phones exist at all points along the form factor, price point, and feature set continua.

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.

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