According to a recent report consumers are less likely to replace their old cell phones due to the difficult financial climate, which is bad news for cell phone manufacturers.

In the current financial climate things have become increasingly difficult for many individuals and households. Amongst other things, this has resulted in the need for many consumers to cut back on luxuries and reduce unnecessary spending in order to ensure that their finances stretch a little further.

It has recently been claimed that one of the ways in which consumers may end up trying to save money is to stop replacing functional old cell phones. This is something that is set to have a negative impact on both cell phone manufacturers in terms of sales and on companies that deal with cell phone recycling – as well as those that benefit from recycled cell phones.

Whilst Apple and Samsung have managed to weather the slowdown in sales, it is thought that 4^th quarter sales figures in the cell phone industry will make for bleak reading for other cell phone manufacturers. One analyst said: "The blowout quarter that Apple will report will show they are still the one to beat, while in the Android (operating system) camp ... only a strong brand like Samsung can stand out."

Many of those that are looking to save money on their cell phone usage are opting for SIM only deals rather than replacing their handsets and going for standard phone contracts that come with new handsets.