Wireless Smartphone Strategies

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

April 22, 2015 20:24 nmawston

Following Day One at the global Huawei Mobile analyst event in China, compared to the first day where there were a lot of keynote speeches, Day Two events were separated by a couple of different tracks ranging from consumer business, enterprise business, enabling ICT transformation and SDN, through to digital business innovation. Our analysts from our Wireless Smartphone Strategies (WSS)service joined the consumer business track.

As stated in our Day One blog, "connection" is the keyword for this event. In its consumer business, Huawei plans to give consumers a “smart life” in the future with solutions of wearables, smart homes and vehicle-mounted devices for the connected person, connected home and IoT, by centering on smartphones to create a consistent user-experience. Huawei has cooperated with various wearable partners such as Tencent, Baidu, Codoon, Jawbone, Google, Myfitnesspal, Auto Navi and Boohee. It also partners with Mercedes and Audi in vehicle-mounted devices.

For wearable devices, Huawei currently provides two products: Talkband B2, which is released in China on April 22nd and begins to sell on April 23rd, and its predecessor Talkband N1. Huawei will also launch (slightly delayed) its Watch in the third quarter of this year. There will be three colors of Huaweil Watch: gold, silver and black, with 40+ watchfaces. It is a full-circle outlook, with a 42mm diameter, Sapphire crystal cover, 1.4-inch AMOLED display with 400x400 screen-resolution. It will be sold outside China first due to the well-known Google (Mobile Services) issue in China.

As smartphone products will still be centric to its consumer business, Huawei will still pay a lot of attention to this segment in the future. Huawei targets more than $40 billion revenue and 15% marketshare for its global smartphone division in 2019. Huawei will maintain its dual-brand (Huawei and Honor) smartphone approach, but it plans to reduce its number of products and focus on technical innovations to improve product competitiveness and sales volume of single models.

Huawei plans to grow its revenue of the smartphone segment from overseas to be over 60% in 2015 and higher in the future (currently around 50%). To achieve this goal of global development, it will continue investing in global retail stores, promoting the Honor brand outside China, and enhancing Huawei’s brand image and global influence by high-end marketing, Internet marketing and emotional connections.

To be sure, 2
014 was a banner year for Huawei and it has kept on doing very well in the first quarter of 2015. Will this momentum continue into 2016? It will depend on its "connection" with the whole ecosystem.


April 21, 2015 08:48 lsui

 There are over five hundred analysts and media worldwide attending Huawei's 12th Global Analyst Summit in Shenzhen, China, today. Our analysts from our Wireless Smartphone Strategies (WSS) service also joined the event.

The key theme of Day One is about the corporate overall performance review and strategy outlook. Looking in the rearview mirror, 2014 was a banner year for Huawei. Financially, company overall-revenue increased +21% YoY to RMB 288.1 billion (US$46 billion). Company overall-profitability also improved, with 9.7% net profit in 2014, up from 8.8% in 2013, mainly thanks to a streamlined organization and management structure, as well as improved average selling prices (ASP).

The operator business still made up the lion’s share (67%) of overall group revenue, but consumer (26%) and enterprise (7%) divisions have been growing faster in 2014. The consumer business group (smartphone, dongles, and other products) posted RMB 75.1 billion (US$12 billion) revenue in 2014, up 33% YoY, leading the pack among all three business groups.

Geographically, China contributed to 38% of total revenue in 2014, up from 35% in 2013, mainly thanks to the uptake of 4G LTE in China. Europe, Africa, Middle East, Asia Pacific and Latin America also saw healthy growth. In contrast, its North America performance remains lackluster and saw a decline last year.

For the smartphone business, in which Huawei ranked the third largest smartphone vendor by volume worldwide in 2014, according to a report from our Wireless Smartphone Strategies (WSS) service, Huawei reiterated its commitment to the sector but indicated it will continue focus on profit rather than scale. Compared with the two industry giants Apple and Samsung, the operating margin on Huawei's smartphone business is still quite slim, so there is scope for growth. Our Wireless Smartphone Strategies (WSS) service tracks the world's top-16 smartphone vendors by value and profitability on a quarterly basis in this extensive report.

Moreover, Huawei outlined some initiatives to upgrade the service-driven platform for its smartphone products, including building up offline-service networks, building a full-service online platform in key cities across 100+ countries, as well as establishing an operational excellence center (OEC) to realize synergy across online and offline channels.  We look forward to more details in the Day Two session tomorrow.

Connection is the keyword for this event. “Open road to a better connected world” is their slogan and can be seen everywhere at this event. We understand it refers to the connection between Huawei and customers, between consumers and service / product providers, between people and people, and between IoTs, etc. In the Consumer business, will Huawei extend into a more cross-product connected ecosystem, from its current smartphone and dongle-focused product lineup? How will Huawei execute its service-driven platform to provide consumers with full-lifecycle services? Please stay tuned for our Day Two blog.

 

 


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 26, 2015 00:08 nmawston

According to the latest research from our WSS (Smartphones) research service, global smartphone users reached 2 billion for the first time ever in 2014.

One in three of the world’s population now owns a smartphone.

Global smartphone users grew 37 percent from 1.5 billion in 2013 to reach 2.1 billion users in 2014. This is the first time worldwide smartphone users have surpassed the two-billion level. We forecast global smartphone users to increase a further 22 percent to 2.5 billion in 2015. An impressive 35 percent of the world’s 7.2 billion population will own a smartphone by the end of 2015, up from 29 percent in 2014.

Well over 2 billion people worldwide own a smartphone today. The smartphone has become one of the most widespread electronic devices of all time. The smartphone is ubiquitous and it is rapidly evolving to become a central hub for controlling consumers’ daily lives in the home, car and office of the future.

 

Exhibit 1: Global Smartphone Users in 2013 to 2015  [1]

Global Smartphone Users (Billions of Units)

2013

2014

2015

Total Smartphone Users

1.5

2.1

2.5

Total Population

7.0

7.1

7.2

Total Smartphone Users as % of Total Population

22%

29%

35%

       

Source: Strategy Analytics

 

 

 

 



[1]  Numbers are rounded. A “user” is defined as a person who owns and uses one or more active smartphones.


February 11, 2015 06:30 nmawston

As expected a few months ago, the world's first Ubuntu smartphone will finally be launched commercially today, Wednesday 11th February, 2015. Right before Mobile World Congress (MWC), the cellphone industry's biggest annual tradeshow.

The device in question is a repurposed BQ E4.5 mid-tier Android model -- but with Android software replaced by Ubuntu.

The new device will be distributed online (in Western Europe only) in a "flash sale" today, followed by three more such events by the close of February.

The BQ Aquaris E4.5 Ubuntu Edition has a 4.5-inch screen, 1GB RAM and dual-SIM connectivity. The hardware specs are good, but not groundbreaking, at that midrange pricepoint.

There will also, eventually, be a Meizu MX4 Ubuntu model launched in China in H1 2015. Meizu is currently the 11th largest smartphone vendor in China.

For the apps ecosystem, Ubuntu does not yet have a recognized apps store, but it does offer "scopes" that are single-screen windowpanes / homescreens on the handset for apps and services. For example, there is a "scope" (app) for Web-browsing, social networking, and so forth.   

BQ is a top-10 smartphone vendor in Spain. Like Wiko France, Xiaomi China and Micromax India, BQ Spain is a "local" smartphone vendor that is attempting to gain marketshare through local apps, local distribution and good, old-fashioned hardware price-cuts. So far, BQ has grown relatively well at home in Spain, but its international presence outside the country is tiny.

It is good to see innovation from Ubuntu, but BQ's (and Meizu's) new device will NOT worry the likes of Apple and Samsung. The BQ Ubuntu phone has limited global distribution, a limited apps ecosystem, limited developer support and limited hardware-vendor support. Our WSS (Smartphones) service forecasts Ubuntu to account for just 1% share of all smartphone shipments worldwide in 2015. Ubuntu will struggle to make headway in the crowded smartphone market.


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.


January 29, 2015 01:51 khyers

According to the latest research from Strategy Analytics, global smartphone shipments grew 31 percent annually to reach a record 380 million units in the fourth quarter of 2014. Apple tied with Samsung to become the world’s largest smartphone vendor.

Global smartphone shipments grew 31 percent annually from 290.2 million units in Q4 2013 to a record 380.1 million in Q4 2014. An impressive 1.3 billion smartphones were shipped worldwide in 2014, with very strong growth seen last year in emerging markets such as China, India and Africa.

Apple shipped 74.5 million smartphones worldwide and captured a record 20 percent marketshare in Q4 2014, increasing from 18 percent a year earlier. Apple’s new iPhone 6 and 6 Plus models are proving wildly popular in China, United States and Europe. Apple tied with Samsung to become the world’s largest smartphone vendor for the first time since Q4 2011. Samsung shipped 74.5 million smartphones worldwide and captured 20 percent marketshare in Q4 2013, dipping from 30 percent in Q4 2013. Samsung continues to face intense competition from Apple at the higher-end of the smartphone market, from Huawei in the middle-tiers, and from Xiaomi and others at the entry-level. Samsung may soon have to consider taking over rivals, such as Blackberry, in order to revitalize growth this year. Samsung remained the number one smartphone player globally on a full-year basis in 2014. 

Lenovo merged officially with Motorola to capture 6 percent global smartphone marketshare and take third position in Q4 2014. Lenovo is hoping to leverage Motorola’s famous brand to drive global scale this year and to offset some of Lenovo’s recently weakening smartphone growth at home in China. Meanwhile, Huawei shipped a robust 24.1 million smartphones for 6 percent share and fourth position worldwide in Q4 2014. Huawei is expanding rapidly online in China and through retailers across Africa, enabling it to become an emerging powerhouse in developing markets.

Exhibit 1: Global Smartphone Vendor Shipments and Marketshare in Q4 2014*

 

Global Smartphone Vendor Shipments (Millions of Units) 

Q4 '13 

2013 

Q4 '14 

2014 

Samsung 

86.0 

319.8 

74.5

317.2

Apple

51.0

153.4

74.5

192.7

Lenovo-Motorola

18.8

62.1

24.7

92.7

Huawei

16.6

50.4

24.1

74.1

Others

117.8

404.3

182.3

606.8

Total

290.2

990.0

380.1

1283.5

         

Global Smartphone Vendor Marketshare (%)

Q4 '13

2013

Q4 '14

2014

Samsung

29.6%

32.3%

19.6%

24.7%

Apple

17.6%

15.5%

19.6%

15.0%

Lenovo-Motorola

6.5%

6.3%

6.5%

7.2%

Huawei

5.7%

5.1%

6.3%

5.8%

Others

40.6%

40.8%

48.0%

47.3%

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

The full report, Apple Becomes World’s Largest Smartphone Vendor in Q4 2014, is published by the Strategy Analytics Wireless Smartphone Strategies (WSS) service, details of which can be found here.

*Numbers are rounded.

 

 

 

 



January 28, 2015 21:00 nmawston

According to the latest research from our WSS (Smartphones) service, global smartphone shipments grew 31 percent annually to reach a record 380 million units in the fourth quarter of 2014. Apple tied with Samsung to become the world’s largest smartphone vendor.

Global smartphone shipments grew 31 percent annually from 290.2 million units in Q4 2013 to a record 380.1 million in Q4 2014. An impressive 1.3 billion smartphones were shipped worldwide in 2014, with very strong growth seen last year in emerging markets such as China, India and Africa.

Apple shipped 74.5 million smartphones worldwide and captured a record 20 percent marketshare in Q4 2014, increasing from 18 percent a year earlier. Apple’s new iPhone 6 and 6 Plus models are proving wildly popular in China, United States and Europe. Apple tied with Samsung to become the world’s largest smartphone vendor for the first time since Q4 2011. Samsung shipped 74.5 million smartphones worldwide and captured 20 percent marketshare in Q4 2014, dipping from 30 percent in Q4 2013. Samsung continues to face intense competition from Apple at the higher-end of the smartphone market, from Huawei in the middle-tiers, and from Xiaomi and others at the entry-level. Samsung may soon have to consider taking over rivals, such as Blackberry, in order to revitalize growth this year. Samsung remained the number one smartphone player globally on a full-year basis in 2014.

Lenovo merged officially with Motorola to capture 6 percent global smartphone marketshare and take third position in Q4 2014. Lenovo is hoping to leverage Motorola’s famous brand to drive global scale this year and to offset some of Lenovo’s recently weakening smartphone growth at home in China. Meanwhile, Huawei shipped a robust 24.1 million smartphones for 6 percent share and fourth position worldwide in Q4 2014. Huawei is expanding rapidly online in China and through retailers across Africa, enabling it to become an emerging powerhouse in developing markets.


 

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

Global Smartphone Vendor Shipments (Millions of Units)

Q4 '13

2013

Q4 '14

2014

Samsung

86.0

319.8

74.5

317.2

Apple

51.0

153.4

74.5

192.7

Lenovo-Motorola

18.8

62.1

24.7

92.7

Huawei

16.6

50.4

24.1

74.1

Others

117.8

404.3

182.3

606.8

Total

290.2

990.0

380.1

1283.5

         

Global Smartphone Vendor Marketshare (%)

Q4 '13

2013

Q4 '14

2014

Samsung

29.6%

32.3%

19.6%

24.7%

Apple

17.6%

15.5%

19.6%

15.0%

Lenovo-Motorola

6.5%

6.3%

6.5%

7.2%

Huawei

5.7%

5.1%

6.3%

5.8%

Others

40.6%

40.8%

48.0%

47.3%

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.


November 26, 2014 13:43 PLin

According to the latest report -- Global Smartphone Shipments by Family / Model: Q3 2014 -- from our Handset Country Share Tracker (HCST) research service, global smartphone shipments grew +28% annually in Q3 2014. Consumers and operators continue to be attracted to a handful of preferred brands, preferred families and preferred models during the quarter.

We estimate the top 15 families of models accounted for 6 in 10 of total smartphones shipped worldwide during the quarter. Samsung and Apple top the charts, but LG's G and L series, Huawei's Ascend, Lenovo's A series and Xiaomi's Redmi phones are quietly gaining traction.

Our extensive report -- published to clients here -- tracks the world's best-selling smartphone top 15 families and top 50 models by shipment volumes from Q1 2011 to Q3 2014. It is a valuable tool for component makers, car manufacturers, content suppliers, mobile operators, device vendors and other stakeholders who want to identify and measure the world's most-popular smartphones by individual model.


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.