Wireless Smartphone Strategies

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

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.


April 29, 2014 02:50 woh

According to the latest research from our Wireless Smartphone Strategies (WSS) research service, global smartphone shipments grew +33% annually to reach 285 million units in the first quarter of 2014. Leaders Samsung and Apple lost slight traction in the quarter, while Huawei and Lenovo each held five percent marketshare worldwide.

Global smartphone shipments grew 33 percent annually from 213.9 million units in Q1 2013 to 285.0 million in Q1 2014.Smartphone growth was mixed on a regional basis during the quarter, with healthy demand in Asia counterbalanced by sluggish volumes across North America due to changes in the operator subsidy mix.

SAMSUNG shipped 89.0 million smartphones worldwide and captured 31 percent marketshare in Q1 2014, dipping slightly from 32 percent a year earlier. This was Samsung’s first annual marketshare loss in the smartphone category since Q4 2009. Samsung continues to face tough competition from Apple at the higher-end of the smartphone market and from Chinese brands like Huawei at the lower-end.

APPLE grew a below-average 17 percent annually and shipped 43.7 million iPhones worldwide for 15 percent marketshare in Q1 2014, falling from the 17 percent level recorded during Q1 2013. Apple remains strong in the premium smartphone segment, but a lack of presence in the entry-level category continues to cost it lost volumes in fast-growing emerging markets such as Latin America.

The combined global smartphone marketshare of SAMSUNG and APPLE has slipped from 50 percent in Q1 2013 to 47 percent in Q1 2014. There is more competition than ever coming from the second-tier smartphone brands. HUAWEI remained steady with 5 percent global smartphone marketshare in Q1 2014, while LENOVO has increased its global presence from 4 percent to 5 percent share during the past year. Huawei is expanding swiftly in Europe, while Lenovo continues to grow aggressively outside China into new regions such as Russia. If the recent Lenovo takeover of MOTOROLA gets approved by various governments in the coming months, this will eventually create an even larger competitive force that Samsung and Apple must contend with in the second half of this year.

 

Exhibit 1: Global Smartphone Vendor Shipments and Market Share in Q1 2014  [1]

Global Smartphone Vendor Shipments (Millions of Units)

Q1 '13

Q1 '14

Samsung

69.4

89.0

Apple

37.4

43.7

Huawei

10.0

13.4

Lenovo

8.4

13.3

Others

88.7

125.6

Total

213.9

285.0

 

 

 

Global Smartphone Vendor Marketshare  %

Q1 '13

Q1 '14

Samsung

32.4%

31.2%

Apple

17.5%

15.3%

Huawei

4.7%

4.7%

Lenovo

3.9%

4.7%

Others

41.5%

44.1%

Total

100.0%

100.0%

 

 

 

Total Growth Year-over-Year %

39.1%

33.2%

 

 

 

Source: Strategy Analytics

 

 

 

[1] Numbers are rounded.


April 2, 2014 10:25 sbicheno

Canadian smartphone specialist BlackBerry announced another major year-on-year fall in global units shipments recently, which marks the 11th quarter in a row it has seen an annual decline.

Our Wireless Smartphone Strategies (WSS) service notes that it also reported a significantly larger figure for sales through to the end-user, with the difference accounted for by inventory recognized in previous quarters, and the majority of which were running the older BlackBerry 7 OS, which was replaced as the main BlackBerry platform by BB10 a year ago.

While BlackBerry’s shipment decline began in 2011, it seemed to have stabilised in the latter half of 2012. In the light of the continued clearing of BB7 inventory it now appears that the Q3 and Q4 2012 BlackBerry shipments numbers were inflated by a rush to pump BB7 units into the channel - presumably at a discount - in order to clear the decks for the big BB10 launch. One possible negative side-effect of this may have been to offer a cheap, familiar alternative to consumers who might otherwise have given the new BB10 smartphones a try.

On that note, BlackBerry seems to also be streamlining the channel itself, with the recent announcement that it will not renew the licence for T-Mobile US to sell BlackBerry devices after it expires towards the end of April. This decision seems to have been influenced by a February T-Mobile email marketing campaign, encouraging its customers to switch from BlackBerry smartphones to iPhones. BlackBerry CEO John Chen made his displeasure known at the time through a blog, and the damage done appears to have been permanent.


January 9, 2014 19:25 khyers

A newly published report in our Wireless Smartphone Strategies (WSS) service examines BlackBerry's most recent quarterly performance. BlackBerry continued to absorb body-blows in calendar Q4 2013, even as it took concrete steps to put the company back on a path towards recovery. From a huge loss for the handset business due to continued poor sales of its BlackBerry 10 smartphones to an inability to find a buyer who would take the company private, and finally, the replacement of senior executives including its CEO, the fourth quarter of the year capped what has by any measure been an awful year for the Canadian smartphone company. Despite the grim drumbeat of bad news, strategic changes announced by new CEO John Chen, including a partnership with contract manufacturer Foxconn, indicate that the company is making the kinds of difficult decisions that can stem the bleeding and lead the company to a second act as a maker of devices and services tailored to its core base of consumer and enterprise customers.  This published report available to download by clients, examines BlackBerry's current status and future prospects.


October 28, 2013 18:06 nmawston

According to the latest research from our Wireless Smartphone Strategies (WSS) service, global smartphone shipments grew 45 percent annually to reach a record 251 million units in the third quarter of 2013. Samsung captured a record 35 percent share of all smartphone volumes worldwide, while Huawei jumped into third place in the rankings.

Global smartphone shipments grew 45 percent annually from 172.8 million units in Q3 2012 to 251.4 million in Q3 2013. This was the first time ever that smartphone shipments exceeded a quarter-billion units in a single quarter. Smartphones accounted for 6 in 10 of all mobile phones shipped worldwide. The smartphone industry’s robust growth is being driven by strong demand for LTE models in developed regions like the US and 3G devices in emerging markets such as China.

Samsung grew 55 percent annually and shipped a record 88.4 million smartphones worldwide, capturing a record 35 percent marketshare in Q3 2013. Samsung shipped over two times more smartphones than Apple during the quarter. While shipments of the flagship Galaxy S4 model softened, solid demand for the new Note 3 phablet and for mass-market devices like the Galaxy Y helped to lift Samsung’s volumes.

Apple shipped 33.8 million iPhones worldwide in Q3 2013, up from 26.9 million a year earlier. Apple grew just 26 percent annually during Q3 2013, which is around half the overall smartphone industry average of 45 percent. Apple’s global smartphone marketshare has dipped noticeably from 16 percent to 13 percent during the past year. Nonetheless, we expect Apple to rebound sharply and regain share in the upcoming fourth quarter of 2013 due to high demand for its new iPhone 5s model.

Huawei was a star performer as global shipments grew 67 percent annually to 12.7 million units in Q3 2013. Huawei captured 5 percent marketshare and became the world’s third largest smartphone vendor. The popular P6 and G610 models have been among the main drivers of Huawei’s success. Huawei remains very strong at home in China, but its position is less robust in other major markets like the US and Europe. Huawei will need to expand aggressively in the American and European markets if it wants to seriously challenge the big two of Samsung and Apple next year.

Other findings from our research include:

LG shipped 12.0 million smartphones worldwide for 5 percent marketshare in Q3 2013. LG grew 71 percent annually, making it the fastest-growing vendor among the top five brands. LG has been expanding rapidly in Europe, but China and India remain weak spots;

Lenovo shipped 10.8 million smartphones worldwide for 4 percent marketshare and fifth position in Q3 2013. Lenovo is popular among mass-market consumers in China and it is expanding internationally. Two of the world’s top five smartphone vendors came from China -- Lenovo and Huawei.


 Exhibit 1: Global Smartphone Vendor Shipments and Market Share in Q3 2013  [1]

Global Smartphone Vendor Shipments (Millions of Units)

Q3 '12

Q3 '13

Samsung

56.9

88.4

Apple

26.9

33.8

Huawei

7.6

12.7

LG

7.0

12.0

Lenovo

6.4

10.8

Others

68.0

93.7

Total

172.8

251.4

 

 

 

Global Smartphone Vendor Marketshare  %

Q3 '12

Q3 '13

Samsung

32.9%

35.2%

Apple

15.6%

13.4%

Huawei

4.4%

5.1%

LG

4.1%

4.8%

Lenovo

3.7%

4.3%

Others

39.4%

37.3%

Total

100.0%

100.0%

 

 

 

Total Growth Year-over-Year %

44.0%

45.5%

 

The full report, Huawei Reaches Third Place as Global Smartphone Shipments Reach Quarter-Billion Units in Q3 2013, is published by the Strategy Analytics Wireless Smartphone Strategies (WSS) service, details of which can be found here: http://tinyurl.com/bps9qhr.


Please contact Neil Mawston, at nmawston@strategyanalytics.com, for further analysis, data or information.

[1]  Numbers are rounded.


October 23, 2013 00:35 nmawston

According to our Wireless Smartphone Strategies (WSS) service, BlackBerry’s struggles worsened in calendar Q3 2013 as the iconic smartphone maker was forced to take a nearly US$1 billion charge on unsold inventory in the quarter. BlackBerry smartphone shipments fell to the lowest level in 26 quarters, since Q1 2007. BlackBerry management, recognizing that efforts to restore the company to growth will require more time, are seeking to find a lifeline by taking the company private, but as its market prospects worsen it is becoming ever more likely that BlackBerry faces the possibility that it could be broken up with several companies buying its constituent parts. Which potential buyers are in the frame? This published report, available to clients, lists the possible buyers and their reasons for takeovers.


July 17, 2013 20:20 khyers

BlackBerry reported dismal financial results for Q2 2013 as its global smartphone shipments fell -12% annually. The growth of the new BB10 platform is not yet strong enough to offset the slowdown in BB7 volumes. However, an increased BB10 mix pushed the vendor’s average selling price (ASP) to its highest level since 2009. Moving forward, Blackberry must focus heavily on its upgraded second-generation BB10 models for regrowth later this year.

Strategy Analytics recently published a result which examines BlackBerry's smartphone business and results for Q2 2013. This report, published in our Wireless Smartphone Strategies service, and available to our clients, provides key performance indicators and our in-depth analysis and perspective on BlackBerry's Q2 2013 smartphone results and strategies.