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.

September 9, 2014 18:49 nmawston

After years of speculation, Apple finally unveiled its hand today in the mobile payments industry. It is launching Apple Pay, which is a mobile wallet feature for the new iPhone6 / iPhone6 Plus portfolio.

As expected, Apple Pay combines an NFC phone with a secure NFC element, dynamic (changing) security codes, TouchID fingerprinting, Passbook, and ties it all in to the millions of credit cards the company has on file inside iTunes.

Apple Pay will start in the United States in October 2014. The US is the world's largest credit card market, so it is no surprise to see this is their first target. Some of the rest of the world, such as the UK, will follow by 2015.

Partners include most major banks and payment networks, such as Citi, Bank of America, Visa, MasterCard and Amex. Several big stores are onboard, including Subway, Nike and Staples. However, our WMS (Media) service estimates that just a modest percentage of all retail stores in the US can currently accept Apple Pay -- that will be an early barrier to uptake.

Rivals, such as Softcard and MCX, will be very worried by this new development from Apple Pay. Some US operators, like T Mobile, may be upset by Apple encroaching on "their" mobile payment territory.

Apple is now entering a huge NFC phone market that our WDS (Devices) research service forecasts will reach 500 million units in 2014.


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.


August 11, 2014 11:39 nmawston

According to new research from our WDS (Devices) serviceworldwide mobile phone shipments grew +6% annually in Q2 2014. Asia and Africa Middle East were the world's fastest-growing regions, with LG, Alcatel-TCL and Lenovo all significant contributors. Huawei registered its best-ever single quarter in terms of handset volume shipments, while Alcatel recorded its second-best ever quarter and best Q2 ever. This published report, available to clients, details quarterly mobile phone marketshare for the world's top 30 vendors in North America, Central & Latin America, Western Europe, Central & Eastern Europe, Africa Middle East and Asia Pacific.


August 6, 2014 22:02 nmawston

According to our Devices (WDS) research service, Samsung’s global mobile phone shipments dipped annually in Q2 2014, in the face of growing pressure from Chinese and local vendors in markets worldwide. However, in the high-value LTE segment, Samsung is a clear global leader and it is well positioned to attack the fast-emerging China 4G market in the second half of 2014. This published report, available to clients, includes additional datapoints and analysis of Samsung's LTE gains.


July 30, 2014 23:06 lsui

According to the latest Global Handset Subsidy Forecast by Region & Country : 2011 to 2020 report from our Wireless Device Strategies (WDS) service, global handset subsidy spending by mobile operators reached a peak in 2013. Subsidies will lessen from 2014 onwards as carriers tighten further their subsidy budgets.

Some major operators in tier-one countries, such as AT&T US or China Mobile, are trying actively to reduce handset subsidies. This means global handset subsidies will slip both in volume and value for the foreseeable future.

The US remains the largest subsidy country by value, while China will overtake the US to become the biggest subsidy country by volume in 2014.

Our extensive report, published here, provides worldwide handset subsidy forecasts by 6 regions and 2 key countries from 2011 through 2020. Subsidized handset volumes, average subsidy per subsidized handset, as well as total subsidy spend are included. Further breakdowns by device-type (smartphone vs. non-smartphones) and by subscription type ( prepaid vs. postpaid) are included, as well.


July 30, 2014 04:23 woh

According to a recent Q2 2014 report for LG, published under our Wireless Device Strategies (WDS) service, LG finally came back into profit for the first time in a year, due to robust shipments of LTE smartphones such as the G3, G2, G Pro 2 and G2 mini, and the widespread availability of affordable L-series 3G smartphones across both developed regions and emerging markets. However, China and India, the two biggest handset markets in the world, still remain a weak-spot for LG to address immediately, as a number of locally-focused vendors, such as Xiaomi, are growing their market presence quarter by quarter.


May 28, 2014 11:35 nmawston

According to the latest research from our WDS (Devices) service, mobile phone sales will reach 430 million units and generate revenues of US$87 billion in China during 2014. In contrast, mobile phone sales will stabilize at 163 million units and deliver revenues of just US$60 billion in the United States this year. China will overtake the United States for the first time ever to become the world’s largest mobile phone market by value.

We forecast mobile phone sales to grow 15 percent annually to reach a record 430 million units in China during 2014. Mobile phone trade revenues will surge 53 percent annually to reach a record US$87 billion this year. In contrast, mobile phone sales in the United States will grow zero percent annually, while trade revenues will increase only 4 percent to US$60 billion in 2014. China will finally overtake the United States for the first time this year to become the world’s largest mobile phone market by value.


China’s impressive mobile growth is being driven by the country’s rapid shift to 3G and 4G smartphones. Major brands, such as Samsung, Huawei and Lenovo, are aggressively expanding their distribution channels and product ranges across the region to meet extremely strong demand from Chinese consumers for more advanced mobile phones.


The United States is maturing and has now lost its crown to China as the world’s largest mobile phone market by revenue. However, it is important to remember the US remains by far the mobile industry’s most valuable country by profit. High average selling prices for mobile phones and huge operator subsidies from Sprint and others continue to make the US a very profitable market for major device brands such as Apple, Samsung and Alcatel.

 

Exhibit 1: Mobile Phone Sales and Trade Revenues by Country in 2014  [1]

Mobile Phone Sales (Millions of Units)

2013

2014

China

374.8

429.8

United States

163.3

163.4

 

 

 

Mobile Phone Trade Revenues (US$, Billions)

2013

2014

China

$57.0

$87.2

United States

$57.4

$59.5

 

 

 

Source: Strategy Analytics

 

 

  



[1]  Numbers are rounded. The term "mobile phone" refers to all smartphones plus feature phones combined. Trade revenues are defined as wholesale revenues. The 2014 data are forecast estimates.


May 27, 2014 15:13 nmawston

Our WDS (Devices) research service forecasts mobile phone revenues to grow +13% worldwide during 2014. At the same time, the four BRIC countries combined -- Brazil, Russia, India, and China -- will all grow at rates well above the global average. Led by China, BRIC countries will generate 36% of all global cellphone revenues in 2014. Among the four countries in 2014, China will experience the highest revenue & ASP growth rate, propelled by the decrease in ultra-low tier market and the increase in other higher price range segments.

Our extensive report -- which can be downloaded by clients here -- forecasts BRIC country handset sales volume, wholesale (trade) revenues, and wholesale ASPs across five price-tiers from 2009 to 2020. Additional analysis of the premium, high, mid, entry and ultra-low price-bands is included. The report is a valuable tool for device vendors, operators, component manufacturers, software developers, financial analysts, car makers and other stakeholders who want to measure each country's mobile phone market by value and benchmark their pricing strategies.


May 22, 2014 19:52 lsui

Our Wireless Device Strategies (WDS) service recently published the report: VALUE SHARE : Global Handset Revenue, ASP and Profit in Q1 2014. WDS clients: please click here to access the full report.

Global handset wholesale revenues increased +8% YoY and profits grew +14% annually. Apple and Samsung continued dominating the revenue pool, but Chinese brands Xiaomi, TCL-Alcatel and Huawei jumped into the top 5 most profitable handset vendor list this quarter, with improved operating margins.

Xiaomi is rising quickly, ranking the third most proftiable handset vendor, the sixth largest vendor by revenue, as well as the ninth largest vendor in shipments this quarter.

 

May 18, 2014 13:54 nmawston

According to new research from our WDS (Devices) service, global mobile phone shipments grew a healthy +9% annually in the first quarter of 2014. The LTE segment grew fastest among all cellphone technologies, surging +93% from a year earlier. We expect this uptick in growth will continue for the rest of the year, as China and others parts of the world rollout additional 4G networks. Companies benefitting from the LTE spike include Apple, Samsung, Qualcomm, MediaTek and others. More data and analysis can be viewed by clients here.