During its 3Q09 results release, Nokia raised its 2009 global handset shipment forecast from -10% to -7% yoy. Goldman Sachs believes this signals that the worst is over for the global handset market; although this seemed to be widely expected by the market, handsetrelated stocks reacted positively post Nokia results (23% /55% share price appreciation for FIH and BYDE since October 16).
Goldman Sachs believes the smartphone segment growth has altered the competitive dynamics of the global handset market; even though the unit penetration of smartphone is only <20% in 2009E, the value penetration of smartphones could surpass 40% this year, suggesting that it is not a niche market anymore.
