Wireless Device Strategies

First to market each quarter with the most accurate and detailed data on handset strategies. The industry’s most timely, consistent and accurate tracking of device vendor KPI metrics, as well as handset market sales and shipment forecasts.

October 10, 2014 13:50 nmawston

According to a new report from our WDS (Devices) research service, worldwide handset manufacturing and assembly continue to polarize around a handful of production locations, such as China, Vietnam and Brazil. Our extensive report -- published to clients here -- tracks cellular handset manufacturing (production) by 6 regions and 10 countries from 2001 to 2013. The report is a valuable tool for handset vendors, component makers, IPR owners, software developers, operators and other stakeholders to monitor global cellphone production by country.


September 2, 2014 17:28 nmawston

IFA, one of the world's largest mobile and consumer electronic industry tradeshows, and several satellite events, will take place this week in Berlin, Germany, between Tuesday 2nd and Wednesday 10th September, 2014.

Interest in IFA has been sluggish in recent years, but this year's event has something of a buzz about it. Analysts from our WDS (Devices) research service will be attending the event and pounding the show floor to bring you the latest updates.

We highlight three major trends that you MUST prioritize to explore at the IFA show:

1. Wearables: Numerous hardware makers are keen to get their smartwatches and fitness bands into the global market before Apple's rumored iWatch / iTime juggernaut arrives in the coming weeks. We recommend visiting the booths of Samsung, LG, Sony and Motorola to view their latest smartwatch models. We believe Samsung will focus partly on fitness, LG and Motorola on design, and Sony on Japanese-centric features like waterproofing.

2. Phablets: If 2015 is the year of the smartwatch, then 2014 is the year of the phablet. The global market, particularly across Asia, is being flooded with them. Samsung's Note 4 will be the highlight of IFA and the main mobile show in town. Can Samsung wow enough to outshine Apple's imminent new iPhone 6 portfolio? Will big-screen phablets cannibalize small-screen tablets next year?

3. Motorola: Expect to see an increasingly confident Motorola touting its new products. With Lenovo's money and momentum behind it (subject to various regulatory approval), the Motorola team looks very motivated right now. We expect to view the updated G2 and X+1 smartphone models at competitive pricepoints, as well as the fashion-centric 360 smartwatch with a rounded face. Europe rivals, like Wiko France, will be looking nervously over their shoulders.


April 16, 2014 14:36 nmawston

According to a new report from our Wireless Device Strategies (WDS) service, global dual-SIM handset sales will grow a healthy +18% YoY in 2014. Asia, China, India and Africa remain the key markets for popular dual-SIM phones. Nokia, Samsung, Lenovo and Micromax are among major players with high marketshares driving the industry worldwide. Dual-SIM, dual-active (DSDA) models continue to find niche traction in higher-tier segments. Consumers like dual-SIM phones for their flexibility, while carriers dislike them for their churn potential. Our published report, available to clients, contains extensive forecasts for global dual-SIM (multi-SIM) handset sales in 6 major regions and 2 key countries, including China and India, from 2004 to 2020. Qualitative analysis of key vendors and key technologies in this market are included too.


December 16, 2011 15:18 Alex Spektor

Analysts from our Wireless Device Strategies (WDS) service attended the recent 2011 Broadcom Analyst Day held in New York City, where the semiconductor firm highlighted its recent successes in the wireless chipset space and outlined a strategy for further growth.

Broadcom's major revenue growth driver so far has been the proliferation of its "combo chip" wireless connectivity solution, providing enabling technologies like Bluetooth, Wi-Fi, GPS, and NFC. The solution, Broadcom claims, gives them a typical ASP of US $6-8, which provides a healthy contribution thanks to Broadcom's strong marketshare. Moving forward, Broadcom is seeking revenue uplift from going after the combination baseband/applications processor/GPU market, which together with the wireless combo chip would yield to Broadcom a per-handset ASP of US$12-30. Indeed, Broadcom are already well on their way, and according to our Handset Component Technologies team, Broadcom broke into top-five smartphone AP chip supplier rankings during Q3 2011.

The first phase of Broadcom's long-term plan targets the low-end smartphone market, where Broadcom claims that its solution delivers better performance, dollar for dollar. In particular, Broadcom is targeting cost-sensitive Indian and Chinese microvendors, which are small individually but, according to our Wireless Device Strategies service, together represented about 1 in 10 handsets shipped worldwide during Q3 2011. Going after the low-end smartphone segment, we believe, is a wise decision. Indeed, according to our Wireless Smartphone Strategies (WSS) service, more than half of all smartphones will be priced below US$200 wholesale globally in just a few years.

The second phase of Broadcom's long-term plan will be to target the emerging LTE market. Indeed, we expect well over 100 million LTE phones to be sold during the next two years. Coupled with the technology's significantly above-average ASPs, makes it an attractive market for Broadcom to target.

Ultimately, the success of Broadcom's long-term strategy depends on their ability to gain design wins with microvendors and megavendors alike. The recent success of the Broadcom-powered Samsung Galaxy Y is an early indicator that initial momentum is in the right direction.

Alex Spektor
Wireless Device Strategies


December 14, 2011 11:28 nmawston

Strategy Analytics forecasts worldwide HTML5 phone sales will surge from 336 million units in 2011 to 1 billion units in 2013. HTML5 has quickly become a hyper-growth technology that will help smartphones, feature phones, tablets, notebooks, desktop PCs, televisions and vehicles to converge through cloud services.

We forecast worldwide HTML5 phone sales to hit 1 billion units per year in 2013. Growth for HTML5 phones is being driven by robust demand from multiple hardware vendors and software developers in North America, Europe and Asia who want to develop rich media services across multiple platforms, including companies like Adobe, Apple, Google and Microsoft. We define an HTML5 phone as a mobile handset with partial or full support for HTML5 technology in the browser, such as the Apple iPhone 4S.

We believe HTML5 will help smartphones, feature phones, tablets, notebooks, desktop PCs, televisions and vehicles to converge in the future. HTML5 will be a pivotal technology in the growth of a multi-screen, 4G LTE cloud that is emerging for mobile operators, device makers, car manufacturers, component vendors and Web app developers. With its potential to transcend some of the barriers faced by native apps, such as cross-platform usability, HTML5 is a market that no mobile stakeholder can afford to ignore.

However, despite surging growth of HTML5 phone sales, we caution that HTML5 is still a relatively immature technology. HTML5 currently has limited APIs and feature-sets to include compared with native apps on platforms such as Android or Apple iOS. It will require several years of further development and standards-setting before HTML5 can fully mature to reach its potential as a unified, multi-platform content-enabler.

The full report, Global HTML5 Handset Sales Forecast, is published by our Wireless Device Strategies (WDS) service, details of which can be found at this link: http://www.strategyanalytics.com/default.aspx?mod=reportabstractviewer&a0=6901.


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?