Of Course, Smart Phone Sales Are Slowing

No one should be surprised by slowing smart phone or any handset sales. We are in a recession. Once telecom, an infrastructure business, begins to feel the pinch, then you know we are in trouble.

The one good thing that came out of the iPhone introduction was the mad rush by other vendors to outdo the Apple. The big winner is the consumer. The consumer ultimately pays all of our fees and salaries.

No I am not going to sing about mom-n-apple pie or start espousing about the benefits to mankind. However, I will say that the consumer, who has the money vendors and carriers want, is more likely to buy something expensive if they have cash and it is a compelling product.

What we are seeing now is a trend. The trend is not good. However, the good news is that the telecom industry has positioned itself for an emerging broadband multimedia movement. The telecom industry has a platform in the marketplace that it can used to generate revenues when the economy recovers.

The market is not even close to being saturated with smart phones. What we are seeing is a result of the recession. The good news is that there is still room for growth in the sector just not right now.

Investors need to look at the brighter side of this disastrous story. The good news is that smart phone technology is in the hands of the consumer and the marketplace is in a position to grow from that point. What can investors do now?

The telecom industry is moving down a path of building operational support systems (OSS) that optimize their overall operations. In other words carriers are seeking more efficient backup power systems, more efficient HVAC, more power efficient switching/routing systems. Anything that can be used to reduce operating costs is being evaluated. New investment opportunity? Maybe. It is not sexy stuff; it’s the bread and butter of the business.

OSS: It is not sexy stuff; it’s the bread and butter of the business and maybe the last place for opportunity for the next year.