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Consumers Hanging Up on New Mobile Phones


Mobile phones sales are the latest victim of the global recession.

Nokia, the world's biggest maker of mobile phones, saw its earnings plunge 66 percent for the three months ending in June, compared to the same time last year.

Sales of Nokia mobile phones fell 25 percent during that time, and officials say they expect global demand for mobile phones will continue to shrink.

The Finnish company says it is trying to counter the trend by producing phones that offer a variety of applications.

Rival Sony Ericsson is also being hit hard. The world's fifth largest mobile phone maker posted a fourth consecutive quarterly loss, with sales slipping 40 percent.

Industry analysts say many consumers, in both advanced and developing countries, are keeping their old phones longer.

The global recession has been especially difficult for many technology companies.

Earlier this week, Dell, the second biggest maker of personal computers, said it expects demand will continue to be weak. And Sun Microsystems, which makes server, powerful computers that make information and programs available to a network or the Internet, says it expects to post a larger loss than it initially forecast.

In contrast, Intel, the world's second biggest maker of computer chips says it thinks demand may have bottomed out and predicted stronger sales in the second half of the year.

Some information for this report was provided by AFP, AP and Reuters.


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