Handset Country Share Tracker

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

May 2, 2014 16:33 nmawston

According to new research from our Country Share Tracker (CST) service, China smartphone shipments grew +39% YoY to record levels in Q1 2014. Samsung remained in first place, followed by Lenovo. Meanwhile, Xiaomi pushed into the top 3 rankings for the first time ever, due to multiple popular new models. Coolpad solidified its position thanks to healthy demand for LTE phones. Our published report, available to download by clients here, contains handset and smartphone shipments and marketshare by multiple vendors and operating systems by quarter in China from Q1 2009 to Q1 2014. A forecast by smartphone vendor for Q2 2014 is also included. The report is a valuable tool for stakeholders wishing to track the China market, the world's largest by volume and revenue.


May 7, 2010 17:05 nmawston

The big two Chinese vendors, Huawei and ZTE, have initially focused their handset activities on emerging markets, such as ChIndia, Africa and Latin America. Enabled by MediaTek, Qualcomm and Via chipsets, the two handset brands have achieved solid shipment growth in GSM and CDMA since 2007. Both vendors will ship tens of millions of units in emerging markets this year, mostly for low-end prepaid users, giving them a base for scale and buying power. This is phase 1.

Phase 2 of their growth targets mature regions, such as Western Europe and the US. ZTE and Huawei are using their success in emerging markets as a springboard to attack developed markets. The Chinese rightly believe carriers are king in developed countries, and they are quietly partnering with a growing number of the biggest players to deliver carrier-branded hardware. Vodafone recently unveiled 8 new Vodafone-branded models across low-, mid- and high-tiers for its European markets, 6 of which are manufactured by ZTE and Huawei. For example, the Vodafone 845 3G touch-smartphone with Android 2.1 is built by Huawei. The Vodafone 547 EDGE touchphone is made by ZTE. In the US, Huawei made the popular mid-tier Tap touchphone for T Mobile. Carriers like the cost-competitiveness and flexible customization offered by the Chinese brands, and they are useful alternatives to the European, American and Asian vendors such as HTC.

Phase 3 will eventually require a more-complex five-pronged strategy to defend against existing or potential new competitors in the operator-branded handset industry such as Sagem or  Foxconn. Huawei and ZTE will need to upgrade their companies’ competences in:

1. branding;

2. industrial design;

3. portfolio management for build-to-plan products;

4. software usability;

5. content and services.

For now, both Chinese vendors are happy to provide 3G handsets mostly as a delivery tool for operator services. For example, the Vodafone 845 from Huawei is optimized for Vodafone 360 services. But ZTE and Huawei will arguably struggle to sustainably differentiate their own brands on pricing and hardware alone. Developing a software and services (S&S) strategy beyond hardware will therefore become an important value-add for Chinese vendors to attract and retain affluent users in mature regions. An S&S strategy will subsequently open up opportunities for Chinese services brands to partner with ZTE and Huawei to showcase their products in new markets abroad. We have a Google phone and a Microsoft phone; how about a Baidu phone?


February 1, 2010 19:02 nmawston

February is here. And that can only mean one thing: Mobile World Congress (MWC). The world's largest wireless trade show takes place in Barcelona, Spain, from Sunday 14th to Thursday 18th. In between eating, drinking and sitting in the sun, I might even do a little work. Which handset players will be important and who should I go visit?

Nokia is a good place to start. Nokia will stage an off-site event called Connecting People. Connecting People is its longstanding theme to connect people and places with devices and contextual services. Nokia will no doubt unveil a new handset model or two, but we don’t expect anything seismic because Nokia will not want its products to get overshadowed by the noise of MWC.

Samsung will be about Bada, the vendor’s new platform which sits on top of a proprietary or Linux kernel. We recommend demoing its new Bada phone, to see if it matches up with Android, Apple and Symbian devices for usability and richness.

LG, like Samsung, will have a big stand at the show. LG is keen to reposition as a credible smartphone player for 2010 and there will be heavy promotion of its Android and Microsoft portfolios. LG is expanding (belatedly) into content and there should be a display of its 3-Screen 3-Way Sync converged-application service for smartphones, netbooks and TVs.

Qualcomm will be found in several smartphones and smartbooks using its high-speed 1GHz Snapdragon processor. The chipmaker will show its roadmap for the next wave of 1.3GHz (8X50A) and 1.5GHz (8X72) Snapdragons, available for commercial launches of devices over the next 6 to 18 months.

The much-hyped Google Android HTC Nexus One will be on show. However, the handset will be of less interest than the business model. I’ll do some discreet research and see if we can get more color on Google’s underlying plans for its direct-to-consumer online distribution strategy.

We will see a few HSPA+ and LTE demos this year. The dongle players, such as Huawei and ZTE, should have such devices on their stands. This will be a double opportunity to see how next-generation technologies are progressing, while examining how the emerging Chinese brands are performing.

That is a partial snapshot of who I will be visiting. How about you? Let me know by clicking on the Comments link.


January 13, 2010 16:01 Alex Spektor

As usual, this year was a fairly quiet one for mobile phones at CES. Hot consumer electronics products, like ultra-thin 3D TVs, e-books, tablets, and netbooks, all overshadowed phone announcements from the likes of Palm, LG, and Motorola.

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But one bit of important news came from an event that was held in parallel with CES. At the AT&T Developer Summit last week, the big news centered on the impending rollout of Qualcomm’s Brew Mobile Platform across the carrier’s messaging phone portfolio – complete with an app store (AT&T App Center) and “standard” 70-30 revenue sharing. AT&T’s target is 90% Brew MP penetration on mid-range featurephones by end-of-2011.

So, who benefits from the AT&T announcement?

Clear winners

  • US Carriers: Presumably, the most compelling apps would be data-enabled, so the development would drive data plan take-up. Verizon Wireless is already requiring a data plan on a number of its messaging phone models, and is rumored to expand the policy to more non-smart devices.
  • Developers: Improved revenue sharing, a unified platform, and a well-supported SDK make developing apps for multiple devices easier and potentially more profitable.
  • Qualcomm: Prior to this announcement, we were predicting the slow demise of Brew. Although it avoided the fragmentation issues of Sun’s Java ME, the relatively closed nature of Brew caused it to have narrow penetration. Breaking in at AT&T is an important win, though convincing Western European operators will remain a challenge.

Mixed impact

  • Consumers: Apps on phones mean a more powerful device, but if a consumer is ready to buy apps and pay for data, why not get a smartphone, which (after subsidy) is unlikely to cost much more? And what about consumers who might not want a (potentially required) dataplan?
  • Device vendors: A new platform can help vendors with smartphone-weak portfolios compete better, but also means more R&D work, further compliance testing, and potentially longer development cycles.

Strategy Analytics forecasts that 45% of the world’s mobile phones will have application store capability by 2014. While smartphones will account for a large chunk of app store-enabled devices, the fast-growing categories of touchscreen and QWERTY handsets are becoming the leading featurephone categories to embrace the app store business model.

Brew MP on AT&T’s messaging devices and other similar developments all point to the blurring of lines between smartphones and their less-capable featurephone cousins. While benefits of this activity extend to all involved parties, they do so to varying degrees. It remains to be seen how AT&T’s relationship with vendors, consumers, and developers evolves as a result.

-Alex Spektor


January 6, 2010 14:01 nmawston

The Google HTC Nexus One smartphone with Android 2.1 was unveiled in the US on Tuesday 5 January, 2010. It will initially ship in the US, UK, Germany, Hong Kong and Singapore. The HSUPA handset ticks most of the right technology boxes, including a 4-inch touchscreen, multi-tasking and a powerful 1GHz Qualcomm Snapdragon processor. The phone has a handy voice-recognition feature, which can be used for controlling text fields, and it will be a key differentiator. A user can quickly write SMS and email messages simply by speaking to the handset. Only time will tell just how accurate and reliable the voice-control solution actually is. Why has Google gotten into the handset business? Google wants to champion a flagship user-experience and limit fragmentation for Android, while simultaneously driving up its global user-base for future mobile advertising revenues.


Exhibit 1: Google Nexus One


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Some downsides: first, the Nexus One lacks a hard QWERTY and multi-touch, which may be an issue for some segments. Second, the handset's style and design are a little ho-hum and me-too. Third, the retail pricing, at US$179 postpaid and US$529 prepaid unlocked, is not as competitive as some might have expected from a company that is often associated with super-low-cost business models. And fourth, the Nexus One is initially being launched with T Mobile, which may lack the marketing clout of its bigger US rivals such as AT&T.

An interesting development is the opening of a Google-hosted online store, at www.google.com/phone, which will offer an online retail channel through which consumers in the US can buy a prepaid or postpaid Nexus One. A customer must register on the site (useful for Google to control the end-user), choose a phone model, pick a data-plan from T Mobile, then Google will deliver the phone directly to their home. In effect, Google has become a handset distributor and retailer. This is unchartered territory, and it remains to be seen whether Google can compete effectively with the likes of Apple and Amazon. The announcement is certainly good news for the online handset distribution industry. Online handset distribution, via firms such as Amazon, currently accounts for 1 in 12 of all shipments worldwide. With Google's huge marketing clout and its heavily visited PC search engine, online handset distribution is going to see a major uplift in activity this year. Google just made online distribution a hotter topic for 2010.