If sales were to fall in 2009 it would be only the second time this had been recorded in the industry's 15-year history.
In 2001 sales of mobile phones fell by 3%. This year analysts are predicting up to a 15% drop.
Sony Ericsson has predicted the number of handsets it will sell in the first quarter of 2009 will be 37% lower compared with year-on-year figures.
Nokia's mobile division recorded an operating margin of 12.1% for Q4 2008, this was down from 20.1% in 2007.
Samsung managed to grow its market share from 13.4% in 2007 to 16.3% in 2008 according to research firm Gartner. However, the phone operator recorded its first quarterly net loss in the last three months of 2008. It's operating margin dropped to 5.2%.
.jpg)
.jpg)