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.

June 19, 2014 23:30 swaltzer

After years of speculationAmazon finally introduced its first Fire Phone with AT&T in the US on Wednesday, 18th June, 2014. Amazon is planning to take a slice of the global smartphone hardware industry and expand the mobile shopping market. However, the Fire is neither optimized for smartphone buyers nor mobile shoppers, and it risks getting caught in no-man’s land. This first-generation Fire may struggle to gain traction. Further insight and analysis on this topic can be found for subscribers in our published report here: Amazon Fire Puts a Shopping Cart in Your Pocket.


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.

 

August 22, 2013 00:31 lsui

According to a newly published report -- VALUE SHARE: Global Handset Revenue, ASP and Profit in Q2 2013  -- from our Wireless Device Strategies (WDS) service, available to clients, global mobile phone wholesale (trade) revenues grew a healthy +24% YoY in Q2 2013. Revenues for the handset industry are growing faster than shipments. A greater mix of higher-priced 3G and 4G LTE models drove the spike in revenues. Global operating profits for the entire handset industry grew +30% YoY, which is even higher than the +28% YoY growth rate recorded in all of 2012. The profit improvement was caused by better financials from just a couple of major brands, like LG.

 


June 6, 2013 19:34 swaltzer

According to our Wireless Device Strategies (WDS) service, mobile phone wholesale (trade) revenues in India will grow by 17% in 2014. This is faster than the global average. Solid mobile phone volumes and rising wholesale prices due to a 3G boom will drive revenues higher.  More analysis and forecasts can be viewed by clients here

 



February 14, 2013 15:17 nmawston

According to our Wireless Device Strategies (WDS) service, total worldwide mobile phone industry revenues grew a healthy +15% annually in Q4 2012. Profits and prices also increased due to a greater proportion of 3G and 4G models in the mix. Samsung and Apple dominate the industry and they are tightening their grip on value share, squeezing out almost all other rivals. This published report, available for download by clients, provides quarterly global handset average selling prices, revenues and profit metrics for multiple major handset vendors, from 2007 through 2012. Revenue share and profit share are also supplied. The report is a valuable tool for operators, component makers, automotive players and financial analysts who want to track the financial health of mobile phone makers.


November 17, 2012 15:08 nmawston

According to our Wireless Device Strategies (WDS) service, global handset industry revenues grew a surprisingly healthy +11% annually in Q3 2012. Profits and prices also increased due to a greater mix of 3G and 4G models. Samsung and Apple dominate the industry and they are tightening their grip on value share, squeezing out almost all other rivals. More analysis and extensive data can be downloaded by clients from this published report.


September 6, 2012 17:52 nmawston

According to new research from our Wireless Device Strategies (WDS) service, wholesale (trade) prices of mobile phones will rise +10% in Brazil during 2013. Among the "big four" emerging markets -- Brazil, Russia, India, China (BRIC) -- Brazil will experience the fastest growth in average selling prices next year. Brazil's pricing will grow two times quicker than China's. What is driving the uplift? Three main reasons: 3G, subsidies, and GDP. The tide of 3G phones being shipped is rising at a healthy clip. Subsidies for postpaid users remain present at some major carriers. And Brazil's citizens are getting wealthier (despite a recent slowdown), meaning they can afford pricier models. More analysis and forecasts of revenues, prices, and price-bands for Brazil through 2017 can be viewed by clients here.


February 23, 2012 11:25 nmawston

Worldwide mobile phone wholesale (trade) revenues grew a healthy +26% in 2011. Turnover for device companies such as Apple and Samsung reached record highs. Despite economic turmoil across much of the planet, consumers and businesses continued to visit retail stores to stock up with the latest handsets.

What drove the +26% annual growth in mobile phone revenues? There were at least three main drivers of the growth:

1. Emerging markets boomed, especially South America. Consumers in Mexico and elsewhere are going mobile-crazy;

2. A wave of higher-priced 3G / 4G models, from Samsung and others, flooded major developed markets like the United States;

3. Apple's premium-priced iPhone persuaded rich buyers in dozens of countries that expensive handsets can be a rewarding purchase.

Following a record 2011, how strong will handset revenues be if the global economy improves in 2012?