Wireless Smartphone Strategies

The industry’s most comprehensive set of critical market statistics and qualitative analysis, tracking and reporting on smartphones.

February 26, 2015 12:02 nmawston

According to the latest research from our WSS (Smartphones) research service, global smartphone operating profit reached US$21 billion in Q4 2014. The Android operating system captured a record-low 11 percent global smartphone profit share during the quarter. In contrast, Apple iOS took a record-high 89 percent profit share.

Global smartphone operating profit grew 31 percent annually from US$16.2 billion in Q4 2013 to US$21.2 billion in Q4 2014. Android hardware vendors combined took a record-low 11 percent global smartphone profit share, down from 29 percent one year ago. In contrast, Apple iOS captured a record-high 89 percent profit share, up from 71 percent in Q4 2013.

Apple iOS continues to tighten its grip on the smartphone industry. Apple’s strategy of premium products and lean logistics is proving hugely profitable. Android’s weak profitability for its hardware partners will worry Google. If major smartphone manufacturers, like Samsung or Huawei, cannot make decent profits from the Android ecosystem, they may be tempted in the future to look at alternative platforms such as Microsoft, Tizen or Firefox. 

Exhibit 1: Global Smartphone Operating Profit Share in Q4 2014  [1]

Global Smartphone Operating Profit (US$, Billions)

Q4 2013

Q4 2014

Apple iOS

11.4

18.8

Android

4.8

2.4

Microsoft

0.0

0.0

BlackBerry

0.0

0.0

Others

0.0

0.0

Total

16.2

21.2

     

Global Smartphone Operating Profit Share (%)

Q4 2013

Q4 2014

Apple iOS

70.5%

88.7%

Android

29.5%

11.3%

Microsoft

0.0%

0.0%

BlackBerry

0.0%

0.0%

Others

0.0%

0.0%

Total

100.0%

100.0%

     

Total Growth Year-over-Year  %

~

31.4%

     

Source: Strategy Analytics

   

 



[1]  Numbers are rounded. Data refers to realized operating profit for smartphone hardware vendors aggregated by operating system.


February 6, 2015 08:15 PLin

According to the latest report ‘Global Smartphone OS Market Share by Region: Q4 2014from our  Wireless Smartphone Strategies (WSS) research service, global smartphone shipments grew to record levels in Q4 2014. Android registered its first ever year-on-year decline in marketshare, while Apple gained traction on a quarterly basis, driven by strong demand for iPhone 6 and 6 Plus. Microsoft and Blackberry drifted down annually. Firefox continued its gradual uptick as the emerging platform targeted major countries in Latin America, Europe and Asia Pacific.

Our extensive report contains global smartphone shipments by operating system by quarter from 2009 to Q4 2014. The report is valuable for mobile stakeholders who want to size the huge market for smartphones and operating system market share. The report is available here to our paid clients.


January 29, 2015 11:24 nmawston

According to the latest research from our WSS (Smartphones) service, global smartphone shipments grew 30 percent annually to reach a record 1.3 billion units in 2014. Android accounted for 81 percent of all smartphones last year and shipped over 1 billion units worldwide for the first time ever.

Global smartphone shipments grew 30 percent annually from 1.0 billion units in 2013 to a record 1.3 billion in 2014. Emerging markets, such as China and Indonesia, drove the industry’s growth last year and they will continue to do so through 2015.

Android shipped 1.0 billion smartphones worldwide in 2014, rising from 0.8 billion units in 2013. Android has become the first ever smartphone operating system to ship more than 1 billion units in a single year. Android accounted for a huge 81 percent share of all smartphones shipped globally in 2014, and Apple iOS remains its only serious threat for now. Apple iOS shipped 192.7 million smartphones worldwide in 2014, capturing 15 percent share. The new iPhone 6 and 6 Plus models have recently re-energized Apple’s growth and their bigger-screen designs have swiftly gained traction among wealthy consumers.

Microsoft shipped 38.8 million smartphones for a relatively niche 3 percent marketshare worldwide in 2014. Microsoft’s Windows platform dominates PCs, but it continues to struggle in smartphones. Microsoft still lacks multiple major hardware partners to build its phones, while Microsoft’s retail presence in important countries like China remains tiny.

 

Exhibit 1: Global Smartphone Operating System Shipments and Marketshare in Q4 2014  [1]

Global Smartphone OS Shipments (Millions of Units)

Q4 '13

2013

Q4 '14

2014

Android

227.3

780.8

291.7

1042.7

Apple iOS

51.0

153.4

74.5

192.7

Microsoft

9.6

35.8

11.3

38.8

Others

2.3

20.0

2.6

9.3

Total

290.2

990.0

380.1

1283.5

         

Global Smartphone OS Marketshare (%)

Q4 '13

2013

Q4 '14

2014

Android

78.3%

78.9%

76.7%

81.2%

Apple iOS

17.6%

15.5%

19.6%

15.0%

Microsoft

3.3%

3.6%

3.0%

3.0%

Others

0.8%

2.0%

0.7%

0.7%

Total

100.0%

100.0%

100.0%

100.0%

 

 

 

 

 

Total Growth: Year-over-Year (%)

33.7%

41.4%

31.0%

29.6%

         

Source: Strategy Analytics

       

 



[1]  Numbers are rounded.


October 29, 2014 23:57 nmawston

According to the latest report from our WSS (Smartphones) research service, global smartphone shipments grew 27 percent annually to reach a record 320 million units in the third quarter of 2014. Xiaomi was the star performer, capturing a record 6 percent marketshare and becoming the world’s third largest smartphone vendor for the first time ever.

 

Global smartphone shipments grew 27 percent annually from 252.9 million units in Q3 2013 to a record 320.4 million in Q3 2014. Smartphone growth was mixed on a regional basis during the quarter, with healthy demand in Asia and Africa counterbalanced by sluggish volumes across North America and Europe due to ongoing changes in the operator subsidy mix.

 

Samsung shipped 79.2 million smartphones worldwide and captured 25 percent marketshare in Q3 2014, dipping from 35 percent a year earlier. Samsung continues to face tough competition from Apple at the higher-end of the smartphone market, from Xiaomi and Huawei in the middle-tiers, and from Lenovo and others at the entry-level. Samsung is aiming to fight back in the next quarter with fresh models such as the Galaxy Note Edge and Note 4. Apple grew a below-average 16 percent annually and shipped 39.3 million iPhones worldwide for 12 percent marketshare in Q3 2014. Apple’s iPhone growth is slowing worldwide because of its limited presence in the fast-growing entry-level segment. Xiaomi was the star performer in the quarter, capturing a record 6 percent marketshare and rising into third place in the global smartphone rankings for the first time ever. Xiaomi’s Android smartphone models are wildly popular in the Chinese market and it shifts millions of them every quarter through its extensive online and operator channels. Xiaomi’s next step is to target the international market in Asia and Europe, where it may face stronger headwinds of low brand awareness and technology-patent challenges next year.

 

LG shipped a record 16.8 million smartphones worldwide in Q3 2014, rising to fourth position and taking 5 percent global share. LG is performing relatively well in the United States and Europe, due to attractive new models such as the G3 and L series. Huawei rounded out the top five players with 5 percent global smartphone share in the quarter. Huawei’s core strengths lie in emerging markets, such as Africa, China and Latin America, where it operates extensive distribution channels.

 


Exhibit 1: Global Smartphone Vendor Shipments and Marketshare in Q3 2014 
[1]

Global Smartphone Vendor Shipments (Millions of Units)

Q3 '13

Q3 '14

Samsung

88.4

79.2

Apple

33.8

39.3

Xiaomi

5.2

18.0

LG

12.0

16.8

Huawei

12.7

16.5

Others

100.8

150.6

Total

252.9

320.4

     

Global Smartphone Vendor Marketshare (%)

Q3 '13

Q3 '14

Samsung

35.0%

24.7%

Apple

13.4%

12.3%

Xiaomi

2.1%

5.6%

LG

4.7%

5.2%

Huawei

5.0%

5.1%

Others

39.9%

47.0%

Total

100.0%

100.0%

 

 

 

Total Growth: Year-over-Year (%)

46.4%

26.7%

     

Source: Strategy Analytics

   


[1]  Numbers are rounded.


October 28, 2014 21:14 nmawston

According to a new report from our WSS (Smartphones) research servcice, Apple shipped 39 million iPhones worldwide in Q3 2014. Its annual shipment growth rate was only +16% and it continues to slow down. However, weaker shipments are being offset by a stronger ASP, which increased for the first time in two years due to a higher mix of expensive iPhone 6 models. More analysis of Apple's pricing can be viewed by clients here.


October 20, 2014 15:20 nmawston

According to a new report from our Wireless Smartphone Strategies (WSS) service, Blackberry captured 1% smartphone share worldwide in Q3 2014. The company’s hardware division is finally on the cusp of returning to profits for the first time in three years. Cost cuts (e.g. outsourcing) and improved BB10 designs -- like the Z3 and Passport models -- are driving the vendor’s enhanced performance. Additional analysis can be viewed by clients here.


July 30, 2014 23:55 nmawston

According to the latest research from our WSS (Smarpthones) service, global smartphone shipments reached 295 million units in the second quarter of 2014. The Android operating system captured a new record of 85 percent global marketshare, mainly at the expense of BlackBerry, Apple iOS and Microsoft Windows Phone.

Global smartphone shipments grew 27 percent annually from 233.0 million units in Q2 2013 to 295.2 million in Q2 2014. We estimate worldwide smartphone growth has halved during the past year, from 49 percent a year ago to 27 percent today. Global smartphone growth in the current quarter is at its lowest level for five years, and there are wide variations by region. For example, Africa and Asia are booming, while North America and Europe are maturing.

Android’s domination of global smartphone shipments reached a new peak in Q2 2014, with an impressive 85 percent of all smartphones now running Google’s OS. Android’s gain came at the expense of every major rival platform. BlackBerry saw its global smartphone share tumble from 2 percent to 1 percent in the past year due to a weak line-up of BB10 devices. Apple iOS lost one point of share to Android because of its limited presence at the lower end of the smartphone market. Microsoft Windows Phone continued to struggle in the United States and China, and its global smartphone marketshare fell from 4 percent in Q2 2013 to just 3 percent during Q2 2014.

Like the PC market, Android is on the verge of turning smartphone platforms into a one-horse race. Its low-cost services and user-friendly software remain wildly attractive to hardware makers, operators and consumers worldwide. Rival OS vendors are going to have to do something revolutionary to overturn Android’s huge lead in smartphone shipments. Apple’s push into the big-screen phablet market and Firefox’s expansion into the ultra-low-cost smartphone market later this year are the only major threats to Android’s continued growth at this stage.

Exhibit 1: Global Smartphone OS Shipments and Market Share in Q2 2014 [1]

Global Smartphone OS Shipments (Millions of Units) Q2 '13 Q2 '14
Android 186.8 249.6
Apple iOS 31.2 35.2
Microsoft 8.9 8.0
Blackberry 5.7 1.9
Others 0.5 0.5
Total 233.0 295.2
     
Global Smartphone OS Marketshare  % Q2 '13 Q2 '14
Android 80.2% 84.6%
Apple iOS 13.4% 11.9%
Microsoft 3.8% 2.7%
Blackberry 2.4% 0.6%
Others 0.2% 0.2%
Total 100.0% 100.0%
     
Total Growth Year-over-Year % 48.9% 26.7%
     
Source: Strategy Analytics    


[1] Numbers are rounded.


July 24, 2014 02:49 woh

According to the recently published report from Wireless Smartphone Strategies (WSS) service, global smartphone user base is expected to get close to 2.5 billion by the close of 2015. By region term, Asia Pacific is estimated to account for a lion's share, mainly boosted by a growing number of smartphone users in emerging markets including China, India, Indonesia, Philippines and Vietnam in addition to two established smartphone countries, South Korea and Japan. Smartphone user base for 88 countries in 6 continents are covered in this report.

The report is also forecasting the global smartphone user population penetration to figure out the ratio of smartphone ownership out of population and the global smartphone user household penetration to understand the propotion of active users per every single household for 88 countries through 2020.


July 17, 2014 18:25 nmawston

According to our WSS (Smartphones) research service, BlackBerry smartphone shipments fell sharply worldwide during Q2 2014. The Canadian vendor continued to struggle in all regions worldwide. However, cost-cutting and inventory destocking helped BlackBerry to trim its financial losses to the lowest level for over a year. A partnership with Amazon Appstore also improved its services portfolio and there are tentative signs that BlackBerry may finally stabilize in the second half of this year.


May 27, 2014 15:25 nmawston

According to recent research from our WSS (Smartphones) analysis service, some 231 million Android smartphones were shipped worldwide in Q1 2014. Samsung remains the clear number one hardware vendor for Google’s platform. However, among the tier-two brands, there is a growing wave of Chinese players picking up marketshare, led by Huawei, Lenovo and Xiaomi. What can other rivals, such as Sony or LG, do about it? Clients can read additional data in this published report.