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.

November 21, 2014 14:08 khyers

Even as its share in the North American market steadily shrinks, Huawei's global handset shipments rose +15% annually during Q3 2014. Most of Huawei’s cellphone volumes now ship into developing regions like Africa, and we note the Chinese vendor is quietly evolving into an “emerging markets specialist”.  Even as Huawei focuses more of its attention on emerging markets, it is managing to steadily increase ASPs, in part by focusing on phablets. However, by concentrating on emerging markets at the expense of growth in developed ones such as Western Europe, Huawei risks ceeding market opportunties to Chinese vendors like Lenovo, ZTE, and others.

The report Q3 '14 Huawei Emerging Market Specialist, available to clients of Strategy Analytics' Wireless Device Strategies service, examines Huawei's Q3 2014 performance and strategic focus.


November 20, 2014 14:12 khyers

Global shipments of handsets grew by 8% year-on-year in Q3 2014, propelled by a rapidly expanding LTE market in Asia and North America.  Apple led the LTE category, with its newly introduced iPhone 6 and 6 Plus models, while Lenovo ranked first in TD-SCDMA, even as that category shrank.

The report Vendor Share Global Handset Market by Technology Q3 2014 provides worldwide quarterly handset shipments for more than 30 vendors by nine major 2G, 3G and 4G protocols.  Clients of our Wireless Device Strategies service can access the report here.

 


October 30, 2014 02:35 woh

According to the latest report from our WDS (Devices) research service, global MOBILE PHONE shipments grew 8 percent annually to reach 460 million units in the third quarter of 2014. LG was the star performer, capturing 5 percent marketshare and reaching its highest level in the overall mobile phone market for three years.

 

Global mobile phone shipments grew 8 percent annually from 427.2 million units in Q3 2013 to 459.5 million in Q3 2014. Smartphones accounted for 7 in 10 of total mobile phone shipments during the quarter. The 8 percent growth rate of the overall mobile phone market is being driven by healthy demand for 3G and 4G models across Asia, Africa and Latin America.

 

Samsung dipped 15 percent annually and shipped 101.7 million mobile phones worldwide, capturing 22 percent marketshare in Q3 2014. Samsung’s growth rate has slowed recently due to tougher competition from Chinese vendors, but Samsung maintains a good product portfolio and it is still shipping more mobile phones worldwide than Apple and Nokia combined. Nokia shipped 52.2 million mobile phones worldwide for 11 percent share in Q3 2014. Nokia, now owned by Microsoft, continues to face intense rivalry from Apple and dozens of Android vendors across all price-bands.

 

Apple shipped 39.3 million iPhones worldwide in Q3 2014, up from 33.8 million a year earlier. We note Apple’s annual growth rate has almost halved from 26 percent in Q3 2013 to 16 percent in Q3 2014. Apple is finding it harder to achieve growth this year, despite a successful recent launch of the new iPhone 6 portfolio. LG had a strong quarter, capturing 5 percent share of the global mobile phone market, reaching its highest level since the third quarter of 2011. LG is performing well in the US and Europe, but we caution that China and India remain major weak-spots that the vendor still needs to address.

 

Other findings from the research include:

·         Xiaomi shipped 18.0 million mobile phones worldwide for a record 4 percent marketshare to become the world’s fifth largest vendor for the first time ever in Q3 2014. The vast majority of Xiaomi’s global mobile phone shipments take place in China, where it has a famous brand and an extensive retail presence;

·         A long tail of second-tier brands continues to build momentum beyond the top five mobile phone brands. Key emerging challengers in mobile phones worldwide at the moment include TCL-Alcatel, Oppo, Vivo, Lenovo and others. They are important players to monitor.

 

Exhibit 1: Global MOBILE PHONE Vendor Shipments and Market Share in Q3 2014  [1]

Global Mobile Phone Vendor Shipments (Millions of Units)

Q3 '13

Q3 '14

Samsung

120.1

101.7

Nokia (Microsoft)

64.6

52.2

Apple

33.8

39.3

LG

18.3

21.8

Xiaomi

5.2

18.0

Others

185.2

226.5

Total

427.2

459.5

     

Global Mobile Phone Vendor Marketshare (%)

Q3 '13

Q3 '14

Samsung

28.1%

22.1%

Nokia (Microsoft)

15.1%

11.4%

Apple

7.9%

8.6%

LG

4.3%

4.7%

Xiaomi

1.2%

3.9%

Others

43.4%

49.3%

Total

100.0%

100.0%

 

 

 

Total Growth: Year-over-Year (%)

9.4%

7.6%

     

Source: Strategy Analytics

   

 

 

 


[1]  Numbers are rounded. The term “Mobile Phone” is defined as smartphones plus feature phones combined.


October 22, 2014 11:31 nmawston

Unconfirmed rumors are arising yet again in the mobile industry that Lenovo of China will soon try to purchase part or all of Blackberry in Canada. Such rumors have been around for 2+ years, of course -- but the sound of the drumbeat has recently gotten louder again.

Why would Lenovo be interested in Blackberry? Our WDS (Devices) service indicates there are at least three main reasons. They are:

1. Deeper distribution among global carriers and companies;
2. Good OS software for phones and cars (e.g. BB10);
3. Mature mobile security software.

Should Lenovo try to takeover Blackberry? In our view, it would be a risky move. First, the Canadian government may forbid a partial or full merger, due to security or economic reasons. Second, Lenovo today is already struggling to close the deal on its loss-making Motorola takeover. And third, Blackberry is showing signs of financial stabilization right now -- for the first time in years -- Blackberry executives may no longer want to rollover and just "give up".


October 22, 2014 10:15 nmawston

Qualcomm, one of the world's largest component makers, is starting to promote 4K content and 4K video-recording for cellphones in 2015 (e.g. see page 7 of this published Qualcomm report). Device vendors and component builders are keen to sell more 4K phones next year because the integrated technology can differentiate their brands and raise average selling prices. Consumers are certainly interested in 4K phones, but relatively high costs, limited 4K content, and slightly confusing marketing ("what is 4K") are challenges for the category in the near-term. A forecast for global 4K phone sales by region through 2020, from our WDS (Devices) service, can be downloaded by clients at this link.


October 21, 2014 03:04 woh

According to the recently published insight report for Motorola under our Wireless Device Strategies (WDS) service, Motorola is clearing showing signs of rebounding in terms of global handset shipment units in Q3 2014, mainly due to the continued and robust sales of its affordable Moto G and Moto E handsets across Latin America, Western Europe and Asia Pacific. This is the Motorola's fifth straight quarter of sequential handset shipment growth. We estimate that Motorola is capturing 2% global handset market share during Q3 2014. Additional in-depth analysis on volume and value metrics can be checked at this link.


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.


October 8, 2014 20:48 khyers

If it’s October, then Google must be putting the final touches on its next Nexus smartphone. Google’s next smartphone, the Nexus X (aka the Nexus 6 or Motorola Shamu), is rumored to be released soon, though an exact date has not yet been officially announced by Google.  The next generation in Google’s powerful yet affordable lineup of smartphones is speculated to be a 5.9” phablet with Quad HD resolution powered by Qualcomm’s Snapdragon 805.  The new device follows the latest trend by device makers to super-size smartphones.  While, given their size, these phablets are polarizing for many users, they allow device makers to show off their best-of-breed technologies, and though they make up a small proportion of the total smartphone market, phablets typically command premium prices and higher margins for vendors. 

The Next Nexus?

 

Strategy Analytics forecasts phablet and other handset sales in our WDS (Devices) report: Handset Sales Forecast by Type: Phablet, Superphone, Smartphone, Feature Phone & Basic Phone.  The phablet and superphone segments look especially promising as a super-high-growth market, bolstered by consumers' preferences for display sizes bigger than 4 inches. These comprehensive report forecasts global mobile phone sales by type from 2003 to 2020, and it identifies which categories will grow at above-average rates during the next 7 years. Types of devices covered include super-phablets, standard phablets, superphones, standard smartphones, smart feature phones, standard feature phones and basic phones.


October 1, 2014 12:27 nmawston

According to a new report from our WDS (Devices) research service, global LTE handset sales will grow a huge +500% between 2013 and 2020. From 2018 onwards, 4G will make up the majority of handsets sold worldwide. Our extensive report forecasts LTE handset sales from 2010 through 2020, including sales by type, category and mode. Specific categories include LTE-Advanced, LTE-Broadcast, LTE-Direct, VoLTE, LTE Cat 3 through 10, FD-LTE and TD-LTE. The report is a valuable tool for handset vendors, component makers, software developers, operators and other stakeholders to support their high-growth 4G planning activities.


August 27, 2014 14:37 khyers

Lenovo’s global handset shipments grew +40% annually and delivered record marketshare in Q2 2014. Firmly planted among the top-10 global handset vendors, the Chinese company is poised to enter the top-5 if the Motorola acquisition gets approved by authorities in the second half of the year. However, despite record shipments, growth is slowing for Lenovo, profits remain elusive, and the takeover of loss-making Motorola will make achieving profitability that much harder in the near-term.

The company’s sales volumes are strong in Central and Eastern Europe (CEE) and particularly so in the Middle East and Africa (MEA).  Lenovo smartphones were available in 20 markets in CEE and MEA in Q2 2014 and it is entering +20 additional markets in the regions from 2H 2014.

For the present Lenovo is holding off expanding in Western European markets as it waits to complete its acquisition of Motorola.  It intends to leverage the Motorola brand, which has strong recognition and 90% consumer brand awareness to target the region.

Lenovo believes that a market shift from premium to mid-tier devices favors its portfolio, and also expects to realize economies of scale as it leverages its supply chain for Motorola handset production.  However, profitability will continue to be impacted for at least four to six quarters as it integrates Motorola into business.

This published report, available to clients, includes additional datapoints and analysis of Lenovo’s handset plans.