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WEDNESDAY, NOVEMBER 25, 2009
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Cellphone Sales Drop

Recession driving down sales

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(Newser) – The cellphone market is experiencing a significant sales slide, with the most serious decline so far among lower-income users, reports the Wall Street Journal. Studies reveal first quarter sales dips ranging from 5% to  22%. Analysts expect growth to slow even further. The market may be reaching saturation with 83% of Americans owning cellphones.

"When money is tight or expected to be tight, many consumers tend to delay upgrading to a new phone and hang on to the one they already own for a little while longer," an analyst explained.

A shopper talks on her cell phone as she on Chicago's Michigan Avenue. Cell phones sales are sliding as people postpone upgrades in the midst of a recession.
A shopper talks on her cell phone as she on Chicago's Michigan Avenue. Cell phones sales are sliding as people postpone upgrades in the midst of a recession.   (AP Photo/Charles Rex Arbogast)
Kabrina Moton, 16, from Cincinnati, receives a text-message on her cell phones. Cell phone sales are sliding, especially among minors.
Kabrina Moton, 16, from Cincinnati, receives a text-message on her cell phones. Cell phone sales are sliding, especially among minors.   (AP Photo)
Motorola's new line of MOTORAZR2's. New studies say cell phones sales and subscriptions are in decline.
Motorola's new line of MOTORAZR2's. New studies say cell phones sales and subscriptions are in decline.   (AP Photo/Mark Lennihan , file)
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