Wireless Smartphone Strategies

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

October 31, 2014 12:13 nmawston
According to the latest report from our WSS (Smartphones) research service, global smartphone shipments reached 320 million units in the third quarter of 2014. The Android operating system captured a dominant 84 percent global marketshare, squeezing Apple iOS, Microsoft and Blackberry.

Global smartphone shipments grew 27 percent annually from 252.9 million units in Q3 2013 to 320.4 million in Q3 2014. Smartphone growth continues to be driven by robust demand in emerging markets, particularly Asia and Africa Middle East.

Android’s domination of global smartphone shipments remained strong in Q3 2014, with an impressive 84 percent of all smartphones now running Google’s OS. Android’s gain came at the expense of every major rival platform. BlackBerry’s global smartphone share has stayed flat at 1 percent in the past year, due to a lackluster range 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 China and Japan, and its global smartphone marketshare fell from 4 percent in Q3 2013 to 3 percent during Q3 2014.

 

Android’s leadership of the global smartphone market looks unbeatable at the moment. Its low-cost services and user-friendly software remain attractive to hardware makers, operators and consumers worldwide. However, challenges are emerging for Google. The Android platform is getting overcrowded with hundreds of hardware brands, Android smartphone prices are falling worldwide, and few Android device vendors make profits.



Exhibit 1: Global Smartphone OS Shipments and Market Share in Q3 2014 
[1]

Global Smartphone Operating System Shipments (Millions of Units)

Q3 '13

Q3 '14

Android

205.9

268.0

Apple iOS

33.8

39.3

Microsoft

10.3

10.5

BlackBerry

2.5

2.3

Others

0.4

0.3

Total

252.9

320.4

     

Global Smartphone Operating System Marketshare  %

Q3 '13

Q3 '14

Android

81.4%

83.6%

Apple iOS

13.4%

12.3%

Microsoft

4.1%

3.3%

BlackBerry

1.0%

0.7%

Others

0.2%

0.1%

Total

100.0%

100.0%

     

Total Growth Year-over-Year  %

46.4%

26.7%

     

Source: Strategy Analytics

   

 

 


[1]  Numbers are rounded.


October 30, 2014 10:49 nmawston

Lenovo and Motorola confirmed today, Thursday 30 October 2014, that the US$2.9 billion deal to merge their smartphone divisions has been approved and wrapped up. Two have become one.

According to analysis from our WSS (Smartphones) research service, the "big three" ADVANTAGES of the merger include:

1. Increased scale. Higher volumes can equal lower costs. Lenovo captured 5% marketshare of global smartphone shipments in Q3 2014, while Motorola captured 3% marketshare of global smartphone shipments in Q3 2014. Together, they now hold 8% share of the worldwide smartphone market;

2. Deeper distribution channels. Lenovo and Motorola together can now sell smartphones, tablets and wearables in more countries and in more retail stores, operator stores, online stores, or PC channels;

3. Bigger marketing / R&D budgets. Lenovo and Motorola together can potentially spend or borrow more to fund extra marketing and R&D activities.


The "big three" DISDVANTAGES of the merger include:

1. Lenovo is slowing down. Lenovo's rapid smartphone growth of recent years is now coming to an end, due to fierce competition from Xiaomi and others. Based on our data, Lenovo's global smartphone shpiments annual growth rate has more than halved from +74% YoY in Q3 2013 to +30% YoY in Q3 2014;

2. Motorola is losing money. Motorola continues to make hefty financial losses, due to a relatively large cost-base. Based on Strategy Analytics data, Motorola has NOT made a profit for 4 years;

3. Smartphone mergers usually take several years to integrate. For example, TCL-Alcatel, a Chinese and French merger, took around 5 years to stabilize and sustain growth.


Clearly, Lenovo and Motorola have strong tailwinds -- such as 8% global smartphone marketshare and two well-known brands. But Lenovo and Motorola also face major headwinds. Lenovo's golden era of easy smartphone growth is coming to an end, while Motorola continues to lose money. Merging these two firms next year will NOT be as easy as many expect.


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.


September 18, 2014 12:03 nmawston

According to new research from our Country Share Tracker (CST) service, the Xiaomi Redmi was the world's 4th best-selling smartphone by volume in Q2 2014. The impressive performance (re)confirms how big the China market has become, and how powerful the Chinese brands are becoming (e.g. Huawei, Lenovo, TCL-A, ZTE, etc.). More analysis and data, of global smartphone shipments by MODEL for Q2 2014, can be downloaded by clients here.


September 18, 2014 11:54 nmawston

The French mobile phone market dipped 5% YoY in Q2 2014, in keeping with the longer-term trend of slightly sluggish growth in the country. Among vendors, Samsung and Apple retained the top two spots, but both brands lost share. Local vendor, Wiko, continued to make impressive gains -- although, there are signs it may be slowing. This published report, available to clients, tracks handset vendor marketshare at the four major French operators -- Orange, SFR, Bouygues Telecom and Free Mobile -- from Q1 2009 to Q2 2014. The report is an important tool for measuring the health of individual handset brands at the operator level.


September 15, 2014 22:47 lsui

Google unveiled three new smartphones based on the previously announced Android One program at an event in New Delhi, India, on September 15th, 2014.

The 3 new models are the Spice One Dream UNO Mi-498, Micromax Canvas A1 and Karbonn Sparkle V. They are all based on the Android One platform (KitKat) and come with the Google Play Store preinstalled.

Our Wireless Smartphone Strategies (WSS) service forecasts Android One to account for 1% of global smartphone sales in 2014. It is a niche-but-growing program for superphone vendors to target the "next billion" users in emerging markets.


September 3, 2014 01:33 lsui

According to a new report from our Wireless Smartphone Strategies (WSS) service -- Value Share : Global Smartphone Revenue and ASP by Vendor by Price-Tier : Q2 2014 -- Lenovo became the world's largest smartphone vendor by volume in the entry-tier category in the second quarter of 2014. This is a first for the company.

However, we note the vast majority of Lenovo's smartphone shipments are generated in its home market of China. Outside China, Lenovo remains a tiny second-tier smartphone brand at the moment.

More analysis of Lenovo and smartphone shipments by price-tier can be viewed by clients here.


August 6, 2014 21:47 nmawston

According our Smartphones (WSS) research service, HTC’s global smartphone shipments fell year-on-year in Q2 2014. This was the vendor’s tenth straight quarter of volume declines. Like Motorola and Nokia, should HTC start searching for a merger partner in 2015? This published report, available to clients, explores the strategic options available to HTC.


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.