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 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 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 18, 2014 14:03 nmawston

UK technology retailers, Carphone Warehouse and Dixons Retail, have this week formally confirmed plans to merge their offline and online stores. With outlets in multiple Western European countries, the combined operations will seek to unify their product portfolios to create a complete connected-device offering. We expect the new group to make smartphones the hub of a connected world across the pocket, home, car and office. A multiscreen retailer for a multiscreen world. We expect other retailers in other countries to follow their early lead in the coming years. More analysis of this important deal can be viewed at this link, by clients of our WDS (Devices) service.


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 23:01 nmawston

The recent unconfirmed rumors that Apple is interested in buying Beats, a headphones maker, for US$3 billion are an important development.

Most analysis so far in the industry has focused on Apple buying Beats for its music service. However, the reality is: Beats is a hardware firm. Its music services so far are niche. Apple is primarily buying Beats for its headphones -- wired and Bluetooth.

Put simply, a premium devices maker is purchasing a premium accessories maker. If the two firms can blend their corporate cultures, and not clash on egos, this deal will prove a good fit for both sides.

More analysis on the Apple-Beats rumors can be viewed in this WSJ TV interview with Strategy Analytics' Wireless Device Strategies (WDS) service, which has published externsively on Bluetooth headsets and other related markets.


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 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 25, 2014 10:02 nmawston

According to our Wireless Device Strategies (WDS) service, Lenovo’s global mobile phone shipments grew an impressive +50% annually in Q4 2013. The Chinese brand was a star performer. However, Lenovo’s mobile phone / smartphone division continues to make very little profit, and taking over the loss-making Motorola unit will not improve financial matters in the short-term. More analysis of Lenovo's challenges for 2014 can be viewed by clients here.


February 7, 2014 17:04 nmawston

Accoding to our Wireless Device Strategies (WDS) service, Motorola’s global mobile phones shipments dipped slightly in Q4 2013. New models, like the Moto X and G, were introduced with much hype. However, the highlight of the quarter was Lenovo’s purchase of Motorola from Google. Offering an ecosystem of PCs, tablets and smartphones to carriers and corporates, Motorola-Lenovo is now a “one stop shop” for mobile and portable devices that can credibly challenge Samsung, Apple and others. More analysis of this major strategic shift in the industry can be viewed by clients here.