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Samsung Warns Global Handset Sales To Fall

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Another handset maker, another warning about growth in cellphone sales. Samsung said today that worldwide market growth on a unit basis “could come short of our initial forecast for 9 percent growth” in 2008, according to Reuters. James Chung, a spokesperson for the Korean electronics giant, told the newswire that for 2009, it was “possible” that the market could “post a single digit or even negative growth.”

Just two weeks ago, its larger rival Nokia (NYSE: NOK) warned that global handset sales would fall in Q4 and next year, as consumers tightened their spending. On top of the consumer gloom, operators in developed countries are also cutting subsidies, making phones “far more expensive” than just four months ago.

In June, Samsung predicted a 9 percent growth in handset sales, and up until now has not issued any updates. As Reuters points out, however, reaching 9 percent market growth would mean a 6-7 percent annual rise in the fourth-quarter, which analysts say is just not happening.

Nov 24, 2008 9:47 AM ET

Posted In: Gadgets, Companies, Samsung

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