Handset Country Share Tracker

A vital tracking tool for helping companies measure the success of competitors and partners in their local markets.

September 27, 2012 17:34 Alex Spektor

According to Strategy Analytics’ Country Share Tracker (CST) service, 15 countries represented three-quarters of global smartphone shipments in Q2 2012: Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russia, South Africa, Spain, UK, and USA. During the quarter, Samsung was the number one smartphone vendor in 13 of these countries. Meanwhile, Apple captured the top spot in the United States, desipite early anticipation of the recently released iPhone 5. Indeed, Samsung and Apple have separated themselves from the rest of the pack, as the ony two smartphone vendors with double-digit marketshare worldiwde. More smartphone vendor shipments to 15 key countries worldwide in Q2 2012 can be viewed by clients here.


December 8, 2010 13:12 Alex Spektor
In recent years, the titans of the handset industry have been surprised by the success of newcomers. First, Apple – a computer vendor – shook up the smartphone market by storm, taking Nokia’s profit crown in the process. Then, Google – an advertising/search firm – brought to market a new mobile operating system, quickly overshadowing historic leaders RIM and Microsoft. Now, Google’s Android has also become the fastest-growing major smartphone platform, having shipped more than twice as many handsets in the first eight quarters.

Cumulative Shipments, First 8 Quarters

clip_image002

Google’s successful growth has been enabled by strong support from its many partner vendors. As the first Android handset maker, HTC long enjoyed top market share, steadily broadening its portfolio across protocols (including hot “4G” technologies like HSPA+ and WiMAX), global carriers, and retail price points, staying ahead of Android competitors Motorola and Samsung. Historically, Samsung’s smartphone share had been disproportionate to its successful position in the overall market, and we had long commented on the matter. However, starting in Q3 2010, Samsung became the world’s largest Android vendor. Samsung accomplished this by launching an all-out assault across the globe with its Galaxy S family of handsets. For example, in the fickle US market, where each carrier has demanding compliance and customization requirements, Samsung launched a Galaxy S phone with each major carrier. Samsung’s share of the global handset market has tripled since 2001, when it was already a third-ranked player. Given that historic show of determination, the vendor’s leap to first place in Android smartphones should not at all be surprising. Expect Samsung to expand this leadership position in 2011 and beyond, riding Android’s coattails to huge smartphone volumes. -Alex Spektor Samsung Overtakes HTC to Become World's Largest Android Vendor in Q3 2010 Global Smartphone OS Market Share by Region: Q3 2010

October 12, 2010 04:10 David Kerr

sa photo dk

At CTIA in San Francisco last week, away from the fanfare around LTE rollouts and the next dozen tablet devices (ok, I exaggerate a little), Sprint had an announcement which will have significantly higher impact on mobile broadband adoption and revenues: Sprint ID. 

Sprint ID promises to up the ante on personalization and ease current feature phone users into the smart phone ranks.

Sprint ID offers instant personalization along key themes/packs where the operator has done the heavy lifting of identifying and group related applications of interest to different persona from wallpaper to ringtones to apps. While the one click marketing line is not quite matched by reality given pesky little things like accepting terms and conditions etc, Sprint ID is a significant breakthrough in my opinion as:

  • it broadens the market appeal of Smart phones to current feature phones users with a simple to understand offer in a range of device price points including the critical $49 and $99 levels.
  • it tackles one of the biggest weakness of all app stores: discoverability of content and simple personalization.

Three handsets were featured at launch of Sprint ID: Sanyo Zio™, Samsung Transform™, LG Optimus S™. These three devices cover key price points in the Sprint portfolio and provide customers with a range of form factors, industrial design and brand to meet their tastes. Interesting to note that both LG and Sanyo retain the right to put their own packs on their handsets as well. This is a big win for LG as its Optimus S™ will be available for under $50 with contract giving the vendor a much needed boost in the smartphone space. Samsung meanwhile continues to shine at Sprint occupying the lucrative $149 spot with its Transform™. All three devices of course require a Sprint Everything Data plan.

However, for me the more significant impact is that operators and oems are finally realizing that customers don’t buy phones or services or apps… what they really want are positive experiences

… be that socially connected, sports, education, health and fitness, fashion etc. This is something that our User Experience team has been evangelizing for the last 7+ years. Whether its 80k apps on Android or 250k on Apple store or 10K on RIM, one common experience has been exasperation at the huge waste of time, energy and emotions in finding ANYTHING!!! Which happens first, eyes glazing over or fingers cramping with so much scrolling? Either way the net result is often a disappointing experience which the early smart phone coolaid drinkers have learned to live with.

Newbies to the smart phone arena, will certainly have less tolerance and spend less time to personalize their device and enable applications. Sprint ID is well tailored to the next wave who are taking tentative steps into the smart phone space

 

David Kerr

dkerr@strategyanalytics.com


September 23, 2010 22:09 David Kerr

September 23, 2010

While there has understandably been a lot of attention given to consumer apps post iPhone and the plethora of application stores that have emerged, business mobility and enterprise mobility offer huge potential from horizontal to vertical applications and from smartphones to iPads and tablets to superphones.

In both NA and W. Europe, business customers account for under 30% of users but are the dominant streams of both revenue and profits for operators. On the device side, premium priced models from RIM, Nokia, and Microsoft Mobile licensees as well as the iPhone have long been key drivers of profits in a market where low single digit margins are the norm.  The explosion of smartphone choices has led to the battle ground moving beyond the corner office, to other executive and now increasingly the midlevel manager.

With a new range of devices competing for space in the corporate market, the issue of corporate versus individual liable has become an increasing priority for IT decision makers. Add on the complexity of managing an expanding list of OS (Android, iPhone, Windows Mobile, Symbian, Palm, MeeGo, Bada from Samsung) and the growing importance of mobile portable devices with access behind the firewall and one can already feel a corporate migraine forming…. And that’s before we even discuss device management, mobility policy, device retirement etc. etc.

I am looking forward to CTIA Fall (San Francisco October 5-7) and in particular to the Enterprise Mobility Boot Camp moderated by Philippe Winthrop of the Enterprise Mobility Foundation. The boot camp spread over two days will address many of the issue listed above with our own Andy Brown featured in an analyst roundtable on October 6th.  I look forward to meeting you there. Don’t hesitate to contact Philippe for passes to this the deep dive enterprise mobility event.

David Kerr

David Kerr
Snr. VP - Global Wireless Practice
Tel: +1 617 614 0720
Mob: +1 262 271 8974


August 4, 2010 23:08 nmawston


Blackberry has finally introduced its much-awaited OS 6 upgrade with the launch of the Torch 3G smartphone. It will initially be sold exclusively at AT&T in the USA in August 2010, giving the operator an alternative to the iPhone. OS 6 employs a Webkit engine, HTML5 support and universal search. The Torch is a QWERTY slider with a 3-inch HVGA+ touchscreen optimized for messaging and media prosumers. Can the Torch outshine Apple? Is it an Android killer?




Well, the external design is a little unexciting. It looks not dissimilar to the Palm Pre. The hardware-list ticks the right boxes for a premium handset -- with 802.11n, 5MP camera, and so on -- but the 624MHz Marvell processor might be perceived as sluggish compared with the emerging tide of 1GHz superphones. The software-list looks good, with Flash, HTML5 support and Webkit for developers. The Webkit-rendered browser will compress data traffic, benefitting AT&T's stressed network. RIM has opened up the platform a little for a better developer environment. Data services are prosumer-friendly and consumer-friendly and primed for email, Internet-browsing, social networking, instant messaging, maps, WiFi geolocation, universal search, RSS feeds, media playback, Blackberry World and PC tethering. No head-to-head videophony, though.

Navigation of the UI is delivered through 3 main interfaces; touchscreen, trackpad and hard-QWERTY keyboard. Our brief trial of the handset in New York recently found the user-experience to be generally satisfying with a responsive touchscreen and good discoverability for apps and services. Retail pricing will be set initially at US$199 postpaid with a two-year contract. This is just in the sweetspot zone for high-end users, and it indicates AT&T will be subsidizing the Torch to the tune of roughly US$200 per unit.

So... are OS 6, Blackberry World and the Torch an Android killer? No. The overall package of hardware, software and services lacks a true wow factor. The Torch helps RIM to close the gap on Android models and iPhone, but it does not overtake them. Is the Torch a Blackberry savior? Maybe. Torch 1 is a solid step in the right direction to stemming churn by upgrading its touchphone portfolio. Torch 2 and Torch 3 will need to be even better, though, with improvements like a 2GHz processor, because the consumer-enterprise handset market in the US has become hyper-competitive and the Torch will not be a leading light for long.


June 7, 2010 21:06 nmawston
The Apple iPhone 4 and iOS4 finally arrived today. After months of leaks, there were no major surprises about the hardware, software or services. There are up to 100 improved features, of which 9 were prioritized by Steve Jobs at launch. They include a pixel-dense 3.5-inch “retina display”, Apple A4 processor, bigger battery, 802.11n WiFi, gyroscope, 5-megapixel rear camera, front-facing camera, HD video-capture and multitasking. All packed into a thin 9mm formfactor. Apple iPhone 4 becomes reality. Phones, Mobile phones, Apple, iPhone 4, WWDC2010, iPhone 3GS 0 Services were front-and-center. Apple continues to favorably position its brand as an enabler of fun media for young-at-heart consumers. There is iBooks for reading, iMovie for film-editing and iAds for advertizing. The most ambitious move is FaceTime, a head-to-head videophony service using the front camera. The service has a catchy sub-brand, so it is off to a good start. But videoconferencing has been around for years and never really gotten off the ground outside Japan, so it will be interesting to see whether the iPhone ignites demand among western consumers or businesses. Two-way webcamming, via sites like Skype, is not uncommon among PC users, so it may be possible to transfer some of those usage traits to the mobile. FaceTime will initially be available only over WiFi, because operators’ 3G networks are not fully ready to cope with the potential spike in data traffic. Many of the iPhone’s weaknesses remain. Despite the hype, Apple is not flawless. There is still no support for popular Flash software. The iPhone’s closed ecosystem and apps-approval process are not ideal for some developers. And the handset’s expensive pricing makes it heavily reliant on operator subsidies. Overall, the iPhone 4 is another step forward. It raises the smartphone and services bar a little higher. Apple has done just enough to maintain its leadership in design, UX and consumer content. Nokia, RIM, Google, Microsoft, Samsung, LG and other OEMs still have some catching-up to do.

June 4, 2010 20:06 David Kerr
sa photo dk

 

 

 

The inevitable movement to tiered pricing which started with Verizon Wireless acknowledging its plans to do so for LTE and has been accelerated with the much anticipated data plan announcement by AT&T this week.  So, what next?

    • Will we see significant priced based competition for mobile data among the top US operators?
    • Will we see significant movement in share of adds for AT&T as iPhone wannabees are tempted by a plan of only $15?
    • What impact will lower data plans for smartphones have on AT&T’s Quick Messaging Devices and Verizon Wireless equivalent?
    • How long before we see family data plans and shared usage across multiple devices?

The move by AT&T is a smart play to extend the smartphone momentum as the low hanging fruit of Apple aficionados, multimedia techies and style seekers willing to pay top dollar has been significantly penetrated.

There is no doubt that the iPhone remains the coolest device on the marketplace and the end to end user experience remains easily the best in class. So, reducing the TCO to attract the next 20% of customers to a paid data plans while educating customers about data usage levels and managing the traffic risk is very smart business in my opinion.

The lower price points will help AT&T maintain its current leading share of smartphone users and may be attractive to casual social networkers

  • Although the 50 photos allowance is not exactly generous! For casual messenger, and social network status checking and moderate email the new DataPlus plan is quite attractive overall and will likely attract a portion of customers who would otherwise opt for a Quick Messaging Device from AT&T or a competitive offering from Verizon Wireless.

I do expect to see some modest price competition among the big operators

  • with T-Mobile most likely to drive prices lower given their need for scale and to protect their predominantly youth centric customer base. but also expect an increasingly strong Verizon Wireless handset line up to compete strongly.

The impact on Quick Messaging Devices is in my opinion likely to be modest

  • as a traditional qwerty remains overwhelmingly the input of choice for heavy messengers in the US although there is definitely room for lowering the $10 mandatory data plan on featurephones

Family data plans and data plans which allow access across multiple devices are in the pipeline

  • but will probably not make an appearance until 2012+ as part of LTE offerings.

From a device vendor perspective, the move to lower priced iPhone plans is likely to put further pressure on vendors like LG who have yet to make a credible offer in this space as well as RIM who will find more competition in the consumer space.

The lower pricing on data plans will be music to the ears of ambitious new entrants like Huawei, ZTE who plan to bring mass market priced devices to the US & Europe. The lower TCO of smartphones as a result of downward pressure on service prices boost their addressable market.


May 12, 2010 15:05 Alex Spektor
From a total handset volume perspective, not much has happened in a year in North America. Indeed, our findings show that the region’s growth during the first quarter of 2010 has been flat on a year-over-year basis. But, if we look closer, we can actually observe a lot of movement within, as smartphone specialists face off with traditional vendors. South Korean vendors Samsung and LG have carved out a nice spot at the top of the market, controlling nearly 50% of volumes last quarter. But, while Samsung continues chugging forward—the vendor surpassed 30% market share for the first time ever—LG should be concerned. After many quarters of strong growth, the vendor is now more than 4 percentage points below its peak market share. Without doubt, its essentially nonexistent smartphone portfolio is to blame here. image Astonishingly, Motorola has remained in the top four despite 12 consecutive quarters of annual declines. However, this time around, Motorola finally yielded the #3 spot to North American neighbor Research In Motion. Of course, Motorola’s Android portfolio is ramping up quickly, with all-time-high smartphone volumes. But, as the vendor continues to shed featurephones from its portfolio, we expect further reduction of volumes. Despite moving up in ranks, RIM has not been seeing stellar domestic performance either. In fact, while everyone around them has been moving up or down, RIM has been standing still. The vendor’s North American market share has been essentially flat for six consecutive quarters. RIM has been (quite successfully) focusing on expanding internationally, but that has come at the cost of stagnation at home. A significant portfolio refresh (more touch?) will be necessary to shake things up. Nokia once again traded places with Apple, losing the #5 spot in our rankings. But, actually, for Q2, my money is on Nokia retaking fifth place. Partly it’s because Apple’s shipments will see a lull in anticipation of the next-generation iPhone. But I also see a lot of potential for the Nokia’s Nuron phone on T-Mobile USA, which offers innovative (read: affordable) smartphone data pricing. In the long run, however, Apple is much better positioned for growth in America, having essentially defined the smartphone experience for the market. Q1 2010 North America Vendor Share -Alex Spektor

April 22, 2010 22:04 bjoy
The Q1 2010 results season are upon us, and Apple reported yet another stellar performance, shipping 8.8 million iPhones globally. This is the best iPhone performance the company ever had outside the fourth quarter.  Typically the iPhone sales are the strongest in during the back half of the year. The third quarter stands to benefit from product refreshes and the fourth quarter from holiday sales. The record first quarter sales is really promising, the upcoming OS 4.0 along with a likely hardware refresh this summer will boost the second half sales even further. The AT&T results the following day shed some additional light on Apple’s performance. The Apple iPhone is still the breadwinner for AT&T, even after nearly three years of launch. Check this fact: AT&T activated 2.7 million iPhones during the quarter, and one third of the activations came from new subscribers, which is higher than the total post paid net-adds reported by the carrier. The impact of the iPhone becomes more obvious if we consider the fact that this is despite the competition from a growing smartphone line-up under the AT&T portfolio, including Android, RIM , and Symbian devices. So who is buying the iPhone these days? After all, the device has been in the market for several quarters now. The early adopters and early majority are already iPhone subscribers (read youth, prosumers etc). The tail end of the demographics, which are the late majority and the laggards (typically the 55+ age group) are the next wave of opportunity for Apple and AT&T. innovation-curve.jpg Innovation Adoption Curve; Chart Source: Google The tail-end of the market is always a difficult proposition for companies as they are often hesitant to embrace new solutions, even if the product or service on offer enhances the quality of life. The word of mouth through family and friends is a major driver for smartphone adoption among seniors, and for this to occur, the product should have a large installed base and be in the market for a very long period. The iPhone in the US is at a distinct advantage in this respect as it enters its fourth year this summer - and perhaps that is already showing in the most recent AT&T results. - Bonny Joy

March 30, 2010 00:03 David Kerr

sa photo dk Returning from CTIA in Las Vegas last week and with only 2 days before going off on vacation to Florida, I found myself reflecting that two of the most interesting meetings I had at the show were with mobile operators.

During CTIA I spent some time with AT&T emerging devices and T-Mobile M2M teams and was impressed with how both these units had managed to cut (or at least untie) the cord to the mother ship and avoid having innovation stifled by the Borg up at Corporate.

    • AT&T’s efforts to encourage a broad range of new applications and devices has definitely paid dividends with Mr. Lurie and his team adding an impressive 1M users in Q409 as a result of new device categories (mostly PND and EBR).
    • T-Mobile revealed a somewhat unheralded pedigree in M2M.

Partnership is the order of the day.

AT&T highlighted partner applications ranging from location enabled pet collars (Apisphere) to glow cap bottles to aid compliance with medication schedules (Vitality) to a very cool new tablet from Openpeak which is very different to the announced but apparently supply side challenged iPad.  Verizon Wireless and Sprint are of course also praying at the alter of open development but perhaps with less public presence.

When I think of enterprise mobility, AT&T and Verizon Wireless are top of mind but T-Mobile has in fact quietly been developing strong competency in the M2M space over the last 7-8 years.

T-Mobile offers four different SIM form factors to suit specific applications and have enjoyed triple digit growth for the last four years. T-Mobile US has quietly activated “hundreds” of different device types on its network with only a handful of devices being rejected or pulled due to network unfriendly characteristics. These devices span Telematics, Connected Energy, Telemedicine and several other applications.

So what is the common DNA of two very different operators that has allowed them to innovate and focus on new opportunities? Separation and operational autonomy to facilitate and open funnel approach to partners and speed of execution not normally associated with US carriers.

In the case of AT&T, the Emerging Devices group was chartered with developing a new space and freed from the legacy of voice & data consumer tariffs and prepaid/postpaid categories which just don’t cut it in the new connected reality where users will have multiple devices connected but used in very different ways. Mr. Lurie and his team have been able to streamline device certification and experiment across the spectrum of business models for new connected applications.

For T-Mobile, speed of certification (days not months) and the independence of being a self-contained unit (own engineers, own sales although linked to broader enterprise group) reporting to Finance & Strategy have allowed them to pursue their “easiest to do business with” approach to the M2M markets.

So, the takeaway? Innovation is alive and well at US operators but separation from the collective corporate mind is essential.

David Kerr