1 billion fewer mobile phones will be sold because of financial downturn

1 billion fewer mobile devices will be sold in the next five years because of the financial downturn, according to a new report by research firm Informa Telecoms and Media. The firm was forced to adjust its forecast down by 14 percent from last year because of the global economic slowdown.

Informa says handset sales should begin to improve next year, but until then users are likely to keep their devices for six to nine months longer than before the economic crisis. "Although growth is forecast to slow in 2009, it is set to pick up again in 2010, when users are expected to buy 1.17 billion devices," spokesperson Paul Lambert said.

The firm expects sales of high-end devices to grow faster than affordable feature phones after 2009.