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Telecom Growth Slowing
Numerous reports hint that telecom growth curves could be slowing, possibly due to the overall economy impacting consumer spending.
This week there are several reports that hint that the telecom sector is experiencing some slowing growth curves. Ericsson reported that its second quarter profits dropped 70 percent due to business costs and some slower sales figures in its phone sales.
Meanwhile a Wall Street Journal report on Vodafone gave solid second quarter sales gains, but indicate the company expected a softening market going into the rest of the year.
Meanwhile Apple posted very solid sales figures but lowered year end sales figures from previous estimates leading analysts to worry that Apple is facing pricing pressures to maintain sales growth. And even though Apple's revenue is much more derived from its computer sales it is a high profile player in the mobile phone market now.
Is the economy starting to slow consumer spending? A lot I am reading suggests it is. And the sector may be starting to experience some slowing. I still think that the overall health of the sector is very good because communications is essential infrastructure and people need to communicate more perhaps in tougher times. Still, this is an area of concern for us all if the economy continues to sputter and pace along with relatively flat or almost no growth.
Tim Sanders
The Final Mile
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