Handset Makers in for a Rough Six Months

Most mobile handset makers have endured a tough first half of 2008, but the worst may be yet to come as they continue to deal with a softening global economy that has consumers ratcheting back their spending.

Nokia (NOK Quote), Motorola (MOT Quote) and Sony Ericsson have stumbled over the last six months.

"[The] handset outlook continues to deteriorate," Brian Modoff, analyst with Deutsche Bank, wrote in a note. "We think consumers globally are stretching out their phone replacements, holding off on purchases to pay for gas or food or the mortgage." Modoff recently lowered his 2008 global unit estimate to 6.1% growth from his previous forecast of 8.1% growth. ...