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.

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.

T
he 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 16:54 khyers

Nokia's global handset shipments dipped slightly in Q2 2014 with smartphone and feature phone volumes sluggish. Microsoft has recently embarked on a major cost-cutting program to restore Nokia's profitability, after it lost millions of dollars in the first half of this year. Significant changes for Nokia include factory closures, employee layoffs, and a de-emphasising of the Android and feature phone range.  Signficant new introductions include the Lumia 930 smartphone with 20 megapixel camera and Microsoft Phone 8.1 OS, the latest version of Microsoft's mobile phone platform. The latest analysis of Microsoft Mobile Devices Group, from our WDS (Devices) service, can be found here.


July 19, 2014 00:38 nmawston

According to our WDS (Devices) research service, Motorola’s global handset shipments increased sharply during Q2 2014. New Android models, like the Moto E and G, are driving higher volumes across Latin America, Europe and Asia. After eight relentless years of decline, Motorola is finally regaining marketshare. However, North America and China remain major weakspots for the company and they are proving to be significant obstacles. Additional data and analysis of Motorola's second-quarter performance can be downloaded by clients here.


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 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.


May 11, 2014 22:51 nmawston

According to our WDS (Devices) research service, TCL-Alcatel's mobile phone shipments grew an impressive +71% annually worldwide in Q1 2014. The firm's shipments, revenues and profits continue to increase at a healthy clip. TCL-Alcatel is perfrming well in Mexico, Russia and elsewhere. However, the vendor’s best performance was saved for the valuable United States market, where it surged past Motorola to become a top-six mobile phone player for the first time ever in Q1 2014. More data and analysis can be downloaded by clients at this link.


April 25, 2014 13:10 sbicheno

Today marked the end of an era in the mobile handset industry as the acquisition of the devices division of the once-dominant handset vendor Nokia by software giant Microsoft was completed, after the scrutiny of various global regulators caused some delays.

Such a move would have been inconceivable back in 2007, when Microsoft’s worth was only double that of Nokia, but the arrival of the iOS and Android mobile operating systems somewhat ironically damaged Nokia far more than Microsoft, and the US$5.44 billion this acquisition has cost Microsoft represents around a 60th of its current worth.

Now the hard work really begins for Microsoft, which is making its boldest move yet towards becoming a vertical hardware player, adding to established products such as Xbox and Surface. It is presumed that Microsoft acquired Nokia Devices in order to boost its own mobile OS - Windows Phone - but this is far from guaranteed.

Microsoft’s global smartphone OS shipment market share was just 4% in 2013, while Nokia’s share of smartphone shipments last year was and even more modest 3%. Furthermore, Nokia’s last major handset initiative before being acquired - the launch of a range of lower-priced smartphones based on Android, rather than Windows Phone - is hardly a ringing endorsement of its new parent.

Microsoft has made this acquisition because it cannot afford to be marginalised in the post-PC world, but the combined operation still has a very small stake in the mobile market and the publicity photo below, released by Microsoft to mark the event, may indicate it realises there is still a mountain to climb.


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.


February 7, 2014 16:56 nmawston

According to our Wireless Device Strategies (WDS) service, Huawei grew its worldwide mobile phone shipments three times faster than the industry average in the fourth quarter of 2013. The Chinese vendor is outperforming in Asia and Europe. However, Huawei continues to lag badly in the valuable LTE handset segment. With 4G emerging fast in China, can Huawei finally crack the LTE market this year? More analysis can be downloaded by clients here.