Shipments of mobile devices in Canada down 8% last quarter, IDC's Mobile Phone Tracker reveals

TORONTO, November 6, 2009 – The expected Canadian mobile phone market recovery will have to wait at least another quarter. The market receded 8% in the third quarter of 2009 (3Q09), which marked the third straight sequential decline, according to preliminary results from IDC Canada's Mobile Phone Tracker.

Handset makers shipped 4% fewer units to wireless service providers and other channel partners in the third quarter when compared to the same quarter last year despite double-digit converged mobile device growth.

Kevin Restivo, lead analyst for IDC's Mobile Phone Tracker in Canada, attributed the weaker-than-expected performance to the tepid Canadian economy, shrinking traditional phone segment, and a desire on the part of the country’s largest wireless service providers to clear out inventory in preparation for network launches.

It's also a step backwards when compared to the market performance in the second quarter of this year – third quarter shipments declined 1.7% compared to 2Q09.

The Canadian market performance stands in stark contrast to that of the United States, which posted positive results, as converged mobile devices and prepaid handsets drove growth for the world's largest mobile phone market.

IDC still expects Canadian mobile phone manufacturers to ship approximately 3% fewer devices on a sell-in basis when compared to 2008 due to lower overall demand caused primarily by the weaker economy.

IDC distinguishes the Mobile Phone Market in two ways:

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.

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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