Handset Country Share Tracker

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

December 22, 2010 16:12 bjoy

Nokia has a healthy working relationship with Microsoft, and the partnership has been growing over the past few years. Recent initiatives include:

  • Microsoft Office Mobile Suite for Symbian.
  • Microsoft Sliverlight for Symbian.
  • The Nokia Booklet, a 3G netbook based on Windows 7.

On the organization front, Stephen Elop, a Microsoft veteran, took over the helms at Nokia earlier this year, bringing both companies closer than ever. While Sliverlight, Microsoft Office, and Windows 7 netbook initiatives are all signs of a healthy partnership, embracing the WP7 platform in its totality takes the relationship to the next level. Shifting the building blocks of your device/software/service ecosystem in favor of third parties is no small decision and will have effect on your intangible sub-brand assets such as Ovi. And that exactly is the rumor from this week, that Nokia will launch WP7 devices in 2011. While we have no official version of the story, it would be interesting to assess the impact of such a partnership in the market. On the positive side, Nokia’s industrial design, distribution and supply chain process are among the best in the industry. WP7 will gain a strong partner in Nokia to bring the best-in-class devices among Windows Phone series. But how much of an impact it will have on Nokia’s platform portfolio, positioning and regional priorities? Where WP7 sits in Nokia’s portfolio?                                        Given the base set of high-end hardware requirements for WP7, the Nokia WP7 device will be positioned in the same premium space occupied by the MeeGo platform. Will Nokia abandon the MeeGo platform in favor of WP7? Or are they going to co-exist, with WP7 focusing on the prosumer and business segments along the same lines of the S60 E-Series? Will there be any major shift in regional platform trends? USA: With an estimated 6% marketshare in 2010 (nearly all basic and featurephones), Nokia has been steadily losing marketshare and carrier shelf space in the US. The partnership is unlikely to change the competitive landscape in the US market, where Apple, HTC, Motorola and Samsung lead the operator shelves. WP7 LTE phones in H2 2011 / H1 2012 might be a potential option for Nokia to make inroads in the US. Western Europe: Microsoft will find more acceptance in carrier channels through Nokia in Western Europe. But beyond the “foot in the  door” strategy, the partnership will have to do little with the success of the platform. In emerging markets, where Nokia has the broadest reach in mid-tier smartphones, the WP7 will be not be the obvious choice for the cost sensitive segments. We believe Nokia will continue to rely on the S60 platform in the mid-tier smartphone segment. Overall, while the idea of a Nokia WP7 device looks like a big win for Microsoft, it’s unlikely to change the prospects of Nokia or WP7 in the smartphone department. Nevertheless, Nokia needs to raise its profile in the US, and this would be a step in the right direction, but it will need step-changes in distribution and subsidies. But for the most part, it’s going to be just another partnership for Microsoft and Nokia – you’re only as strong as your weakest link. - Bonny Joy


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


September 10, 2010 20:09 bjoy
Android sales have already surpassed the iPhone and with each passing day, its building further momentum with new announcements and launches. The launch of the Huawei Ideos, a mid-tier (<200 USD) device with Android 2.2 is yet another milestone in the Android evolution as the platform now extends its reach to new segments traditionally occupied by the feature phones. Most, if not all, major operators have at least one Android model in the portfolio. The platform also has broad support from the vendor community, with major names under its banner. One question at the top of OEM and Operators is how my Android is different from your Android. Look at the Android portfolio in the US market. Aside from the glossy hardware specs and discounting the differences between the base version releases - Android 1.X/2.X – it’s hard to spot any differences beneath the skin. OEMs ability to differentiate is largely limited to the user interface layers. The HTC Sense UI, Samsung TouchWiz and Sony Ericsson Timescape are some of the leading Android skins available in the market. Under the hood, they all share the common goal of servicing the Google’s apps and service portfolio – Search,GMail, Maps and  Gtalk to name a few.   “True” Internet? An opportunity for differentiation here is to bring the “true” internet experience to consumers by seamlessly integrating services and features beyond Google products. This is a tall task for most OEMs as it’s not always easy to develop exclusive partnerships in the content or service space – and some of the most popular non-Google services like Facebook are already integrated to the core Android base anyways. But for operators, the stage is slightly different. Check out some of the most recent announcements from Verizon Wireless: •    The Verizon Samsung Fascinate, part of Samsung’s premium Galaxy S portfolio, uses Microsoft  Bing as the standard option for Maps. •    Bing will also serve as the default search engine for the device. The Galaxy S series is available under all major US operators, but except for the Verizon version, all bear the same look and feel. I’m not going to the merits of which search or maps service yield the best results, but the fact that operators are looking beyond Google’s umbrella services will provide more choice for the consumers – however small that segment be. Skype integration is another differentiator for Verizon Android devices.  Although the Android core base doesn’t have a Google branded VoIP service yet, sooner or later the Google branded VoIP service will be part of the core Android base – especially given the recent launch of integrated VoIP service with Gmail. Replacing core Google services with alternative services will not prove to be a winning formula in all instances, but it could bring the mobile Internet experience beyond Google’s umbrella brands and provide enough service attributes to differentiate from the Google’s core base. The service element is a critical element in the product planning process and product planners should pay keen attention before deciding what should or shouldn’t be replaced from the core platform.  At Strategy Analytics, we’ve tools to support our clients in positioning products with the right combination of hardware/platform/service elements. Drop us a note if you would like to know more on how we can assist your planning teams. - Bonny Joy

August 11, 2010 14:08 Alex Spektor
It may be the exclusive iPhone carrier in the US, but AT&T is also becoming an attractive option for consumers looking to buy an Android handset. Though things weren’t always as they are today. If T-Mobile was the clear early leader in Android adoption among tier-one US carriers, then AT&T was the clear laggard. Let us quickly recap highlights from the US Android timeline:
  • T-Mobile launched the first Android phone in the world in late 2008.
  • It took approximately one year for Verizon Wireless and Sprint to bring to market their own models, in time for the 2009 holiday season.
  • AT&T began selling its first Android handset quite recently: in March 2010.
Less than six months later, AT&T will have as many as five Android phones in its portfolio. This won’t be quite as many as Verizon Wireless and T-Mobile, but it will put AT&T roughly on par with Sprint. AT&T will also be a leader from a variety standpoint, offering smartphones from vendors Motorola, HTC, Samsung, Sony Ericsson, and Dell.

clip_image002

So, what are the key drivers for the ramp-up?
  • Catering to consumer tastes. Despite what Apple might tell you, not everyone wants an iPhone. Consumers looking for alternative features, such as a bigger screen, memory expansion, a more customizable UI, HDMI, etc., can find them among Android handsets.
  • Lower subsidy levels. Now that AT&T has lowered its monthly data plan rates, there is less revenue to offset the subsidy burden. Paying $200-$300 subsidy for an Android handset seems more attractive than Apple’s $400+ subsidy.
  • End of iPhone exclusivity? The Internet is always abuzz with rumors, and AT&T shifting its focus to other platforms is yet another sign that a Verizon Wireless iPhone is potentially in the works. The carrier may be strengthening its portfolio to offset potential losses once the exclusivity ends.
Regardless of AT&T’s underlying reasons, broadening the options available to consumers is a good thing for many of the involved parties. For example, shoppers get a wider selection of handsets and emerging vendors like Dell get exposure to a growing market. However, AT&T will need to be careful in managing the persistent issue of fragmentation. While developers and content providers will be happy to have a larger Android installed base for which to create applications and services, they will also be faced with the cost of addressing multiple models/processors/resolutions/etc. -Alex Spektor

July 16, 2010 21:07 Alex Spektor

Those following the “Antennagate” saga no doubt tuned in to reports from the press conference held by Apple earlier today.

clip_image002As Apple explained during the event, many other phones potentially suffer from a similar issue. Putting on my electrical engineering hat, I have to say I believe it – to an extent. A user’s hand (or ear or cheek) all impact the environment “seen” by the phone. Antenna engineers work carefully to direct signals away from such sources of interference. However, there should be no reason why the left-handed “deathgrip” scenario is unaccounted for.

The smartphone vendor announced that while its “18 PhDs and scientists” work on studying the problem further, Apple would issue free protective cases (of both the Apple-made “bumper” variety and the third-party kind) to all iPhone 4 buyers.

So, why all the negative press?

It appears that consumers and the media alike have a love-hate relationship with successful electronics firms. We love to use their products, but also love to find faults in them. (Google and Microsoft come to mind.) The antenna issue has put the first major dent in Apple’s armor since the original iPhone launched in 2007. To find a fault with a company this successful is a rare occasion, and it often makes for catchy headlines.

The iPhone still offers best-in-class usability for data services. However, the vendor will now need to fix the growing perception that its voice-call capability is sub-optimal. As Apple loses heartshare, it may not stop the die-hard fans from purchasing a device, but it may impact on-the-fence buyers. Given that Apple relies on essentially a single SKU, consumers holding off on making their buying decision can have a quick impact on volumes (without other SKUs to absorb the impact).

Unlike previous years, when Apple’s competition was lackluster, this summer brings compelling Android-powered alternatives from vendors like HTC, Samsung, and Motorola.

So far, we believe that the negative impact on marketshare has been negligible. After all, Apple has already shipped 3 million of the new handset since launch. Furthermore, according to Apple-provided stats, only 0.55% of iPhone 4 users have called to complain about the antenna problem.

However, while the figure is pretty low in percentage terms, it still comes out to about 17 thousand people. The sooner Apple can bring that number to zero (the vendor hopes that consumers will accept the free bumper solution) the sooner it can curb the loss of heartshare and the potential long-term impact on the iPhone’s otherwise gold-plated brand.

iPhone 4 Insight

Smartphone Sales by Country Forecast

-Alex Spektor


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.

May 20, 2010 21:05 David Kerr

sa photo dk

 

May you live in interesting times as the old Chinese proverb goes. Well in the information, communication and entertainment industry we certainly do. Some very interesting questions face our industry whether we look at:

  • the outcome of much delayed Indian 3G auction or
  • the battlegrounds around HSPA+ and LTE or
  • the surging Android ecosystem vs. weakening Symbian or
  • the upside potential for WebOS under it new owners
  • the potential disruption caused by mobile cloud phones and device

Every major technology advancement has lead to a massive disruption in the handset and infrastructure vendor community.

  • In 3G, Motorola’s slim myopia led to its near ruin and has provided huge growth for Samsung and a foothold in international markets for LG and SEMC.
  • On the infrastructure side 3G was expertly grasped by Huawei and ZTE leading to a new wave of M & A and a new world order which counts Nortel as a victim and seriously challenges ALU.

So how will the migration to 4G change the playing field?

  • Who will benefit most on the operator/service provider side?
  • Will Cloud Phones be disruptive in LTE?
  • Will operators find a path to realign the traffic/revenue mix with mobile broadband devices?

I would welcome your thoughts on these key questions. Also don’t forget to join our client webinar on Thursday May 27.

 

David


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