"This has had a polarizing effect on the handset market, with vendors and mobile operators focusing on two types of handset: those targeting the low-end and high-end segments," said Adam Leach, devices principal analyst at Ovum.

In a sign that the recession has not stopped large strategic acquisitions, storage company NetApp Wednesday announced it will acquire backup-device maker Data Domain for about US$1.5 billion. The storage market is one area that has not been affected as much as others by the recession.