Cellphone Sales Drop

Recession driving down sales
By Peter Fearon,  Newser Staff
Posted May 20, 2008 2:35 AM CDT
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)
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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. (Read more cell phones stories.)