Excess inventory buildup analysis in cell phone market

Sameer Singh of the Tech-Thoughts blog wrote this interesting analysis of an excess inventory build-up of Windows phones over the past couple quarters. According to the data presented, shipments by carriers of mobile devices to retailers has outstripped sales to end consumers recently. This is resulting in a buildup of inventory in the channel that will likely cause problems down the line.

According to the analysis the Lumia Windows phones are suffering a severe buildup in Q1. If sales do not materialize in Q2, the likelihood of a glut of excess inventory liquidation hitting the secondary market in Q3 is high. We’ll watch the market and see how it goes.