Published October 30, 2008

Slower growth for mobile phones seen in Malaysia

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(KUALA LUMPUR) The Malaysian market for mobile and handheld phones this year is expected to record slower growth due to creeping inflation and the increase in petrol prices.

Research firm IDC said, based on its Asia/Pacific Quarterly Mobile Phone Tracker for the second quarter of this year, total mobile and handheld unit shipments, excluding parallel imports into Malaysia, would grow 2.3 per cent in 2008 to reach 4.8 million units, although the mobile subscriber base was forecast to expand 10.1 per cent.

'We are optimistic the compound annual growth rate (CAGR) for mobile phone and handheld unit shipments in Malaysia will reach 5.3 per cent over the next five years, reaching six million units by 2012 despite the slow growth forecast for this year,' it said in a statement here yesterday.

IDC's telecommunications research associate analyst for Malaysia, Chua Fong Yang, said the demand for traditional mobile phones slowed immediately after the government announced the 40 per cent increase in petrol prices.

'Phones with a lower price band are particularly impacted as people are prioritising their purchases due to the rising prices of necessity goods,' he said.

Mr Chua said IDC predicted that over the next five years, the growth of converged mobile phones in Malaysia would outpace the growth of traditional mobile phones.



'The 2008-2012 CAGR for converged mobile phones is anticipated to reach 10.1 per cent compared to 3.3 per cent for traditional mobile phones,' he said.

He said the declining average selling price of converged mobile phones would help drive their adoption rate among mobile subscribers.

'In addition, the implementation of mobile number portability services in Malaysia will provide mobile phone and handheld vendors with a new platform to market and sell their products,' Mr Chua said. -- Bernama