Mobile phone sales have proved to be one of the most resilient sectors in consumer and business electronics in the global economy. Despite chalking up sales of 992 million in 2006, the global handset market grew 15.8% YoY to 1,148 million in 2007. The credit crunch started to bite in the latter half of 2007. Oil and inflation were well on the way upwards by 4Q 2007 and yet mobile handset sales grew a respectable 14.4% for 1Q 2008 compared to 1Q 2007. Similarly, despite a substantial spike in inflation in 2Q 2008, global handset shipments in that quarter still managed a healthy 14.2% YoY growth. However, there are signs of clouds on the horizon which could close in on the handset market. 3Q 2008 could potentially underperform for the quarter YoY.