Wireless Smartphone Strategies

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

April 23, 2014 09:50 lsui

There are over three hundred analysts worldwide attending Huawei's Global Analyst Summit, held from April 23 to 25 in Shenzhen, China. Our analysts from our Wireless Smartphone Strategies (WSS) service also joined the event.

The key theme of day one is about the overall corporate performance review and strategy outlook. Clearly, operator business still makes up the lion’s share of overall revenue, but the enterprise business and consumer business have been growing faster in 2013. Geographically, China contributed to 35% of total revenue in 2013, Europe, Asia Pacific and Latin America also saw healthy growth. In contrast, North American performance remains lackluster and posted year-over-year decline last year. Company overall profitability improved.

For the smartphone business, in which Huawei ranked the third largest vendor worldwide in 2013, according to this report from our Wireless Smartphone Strategies (WSS) service, Huawei reiterated its commitment to the smartphone business but indicated it will shift focus from volume growth towards sustainable growth and profitability. Compared with the two giants Apple and Samsung, the operating profit margin on Huawei's handset business was still quite slim in 2013. Our Wireless Device Strategies (WDS) service tracks the top 12 handset vendors' value and profitability figures on a quarterly basis in this report.

Looking forward, Huawei's consumer business needs to identify its own way to fulfill its growth target, rather than sometimes copycatting other players’ strategies (e.g. Xiaomi’s online distribution, or Samsung’s vertically integrated model, etc.). To avoid a price-war and further improve profitability, it seems, is the keyword for Huawei's global smartphone business in 2014.

 

 


April 16, 2014 14:44 nmawston

According to a new report from our Wireless Smartphone Strategies (WSS) service, global smartphone wholesale (trade) revenues will grow +21% over the next 7 years. Increasing smartphone volumes will be partly offset by decreasing average selling prices (ASP), as vendors and operators penetrate deeper into the price-sensitive prepaid market. Falling component prices will enable sales expansion in lower price-tiers, particularly for emerging markets like Asia and Latin America. Meanwhile, Apple and others will continue to target the subsidy-led premium category.

Our extensive published report, available to clients, forecasts global smartphone sales volume, revenues and wholesale average selling prices (ASP) by 6 major regions and 8 price-tiers from 2003 to 2020. Extensive 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 the smartphone market by value and benchmark their pricing strategies.


January 17, 2014 19:33 nmawston

According to our Wireless Smartphone Strategies (WSS) service, the global Tizen smartphone installed base will be a niche proposition in 2014 / 2015. Can Samsung get the new mobile operating system off the ground in places like Japan and Western Europe? Can it avoid a "Bada 2.0" scenario?

This extensive published report, available to clients, forecasts global smartphone sales, by 14 operating systems for 88 countries worldwide, from 2007 to 2018. Almost every major country worldwide is covered, including the United States, China, India, Indonesia, Japan, South Korea, Russia, Brazil, Mexico, South Africa, Saudi Arabia, UK, Germany, France, Italy, Spain and others.



January 15, 2014 16:56 nmawston

According to our Wireless Smartphone Strategies (WSS) service, global Microsoft smartphone sales will grow at a healthy clip in 2014. Microsoft will establish itself as the smartphone industry's 3rd ecosystem. However, Firefox OS, and even Tizen, will be among the fastest-growing operating systems and they will provide competition for the US giant.

This extensive published report, available to clients, forecasts global smartphone sales, by 14 operating systems for 88 countries worldwide, from 2007 to 2018. Almost every major country worldwide is covered, including the United States, China, India, Indonesia, Japan, South Korea, Russia, Brazil, Mexico, South Africa, Saudi Arabia, UK, Germany, France, Italy, Spain and others.


January 15, 2014 16:49 nmawston

Computer giant HP has a long history in the smartphone market, but with two previous failures behind it, the road back is not an easy one. Can HP be "third time lucky" in smartphones? What does it need to do to succeed?

This published report, available to clients of our Country Share Tracker (CST) service, identifies the geographies, product categories and price-tiers that will offer HP the best chance of success should it choose to re-enter the smartphone market once more in 2014.


January 13, 2014 12:52 nmawston

According to our Wireless Smartphone Strategies (WSS) service, global Android smartphone sales will grow steadily in 2014. Android will maintain top spot as the world's most popular platform. However, Microsoft and Firefox OS and will be among the fastest-growing operating systems and they will steadily chip away at Android's sales during the next five years.

This extensive published report, available to clients, forecasts global smartphone sales, by 14 operating systems for 88 countries worldwide, from 2007 to 2018. Almost every major country worldwide is covered, including the United States, China, India, Indonesia, Japan, South Korea, Russia, Brazil, Mexico, South Africa, Saudi Arabia, UK, Germany, France, Italy, Spain and others.


December 13, 2013 16:00 nmawston

According to our Wireless Smartphone Strategies (WSS) service, Xiaomi worldwide smartphone shipments grew a dramatic 271% in Q3 2013, pushing into our top-10 list of smartphone vendors for the first time ever. It took 2% global smartphone volume share and value share this quarter. Xiaomi's online business model has proven to be successful in China, and its overseas strategy is firming up with developed Asian markets as the most likely next step in 2014. This published report is available to clients here.


December 11, 2013 15:28 woh

It has recently been reported online that Nokia has been developing a smartphone, codenamed “Normandy”, which is based on the Android platform. We are not in a position to either confirm or deny these rumours, but if there is anything to them they would mark a remarkable change in strategy for Nokia, which committed 100% to Windows Phone as its sole smartphone platform almost three years ago. So we thought it would be interesting to explore the viability of such a move and ask why Nokia might consider it.

From one perspective, it fully makes sense that the Finnish vendor is trying to build its own Android devices to regain its losing market share in the low-cost handset segment, currently dominated by a lot of Android vendors including Samsung. Under the current circumstances Android is capturing more than 80% market share of all smartphones shipped during Q3 2013 identified in our published report from Wireless Smartphone Strategies, while even Nokia's Asha smart feature phone line-up, designed for low-tier handset markets, is being squeezed by increasingly cheap, but still app-rich Android devices. 

Our smartphone model tracking report for Q3 2013 forecasts Nokia's lower-priced WP-based Lumia 520 to be the most popular Nokia-branded smartphones, outselling most Asha-branded phones. This indicates that Nokia still has some market influence in the low-cost smartphone market with the appealing UI and Windows ecosystem in both emerging and developed markets. It’s possible that Nokia wants its "Normandy” to replace the role of Lumia 520 in the lower-tier markets, based on the low price, well-established Android ecosystems and Nokia's established skill in selling handsets.

Of course this is all speculation on a product that may not even exist, and even if it does it’s hard to imagine Microsoft continuing to develop an Android handset after its acquisition of Nokia’s devices business is complete. But as a vertical handset player Microsoft does need to find a way of increasing its smartphone market share. A if it’s struggling to scale Windows Phone down into the lower price-tiers it needs to find an alternative.


November 12, 2013 17:50 sbicheno

Global smartphone shipments grew by almost 50% annually in Q3 2013, with continued strong demand in many developing markets such as India. TCL-Alcatel, Xiaomi, Lenovo and Huawei of China were the global star performers in the quarter, outstripping many rivals like HTC and Fujitsu as the smartphone balance of power, outside of the big 2, continues to shift in favour of Chinese vendors. Subscribers to Strategy Analytics’ Wireless Smartphone Strategies service can access the full breakdown of global smartphone shipments , split by vendor, region and OS, here.


October 31, 2013 15:30 sbicheno

According to the latest research from our Wireless Smartphone Strategies (WSS) service, global smartphone shipments reached 251 million units in the third quarter of 2013. The Android operating system reached a new record of 81 percent global share, mainly at the expense of BlackBerry and Apple. Microsoft Windows Phone doubled its marketshare and it is currently the world’s fastest growing major smartphone platform.

Global smartphone shipments grew 45 percent annually from 172.8 million units in Q3 2012 to 251.4 million in Q3 2013. Growth was driven by robust demand for Android and Microsoft models in developed and developing markets, notably Europe and Asia.

Android’s domination of global smartphone shipments reached a new peak in Q3 2013, with four out of every five smartphones now running Google’s OS. Android’s gain came mainly at the expense of BlackBerry, which saw its global smartphone share dip from 4 percent to 1 percent in the past year due to a weak line-up of BB10 devices. Apple also lost some ground to Android because of its limited presence at the lower end of the smartphone market. Android will need to take further shipments from Apple if it wants to keep growing in the future, but this is unlikely in the near-term as the new iPhone 5s model is proving popular and it will help Apple to regain volumes worldwide in the fourth quarter of 2013.

Microsoft shipped more than 10 million smartphones worldwide in a single quarter for the first time ever in its history during Q3 2013. Microsoft has doubled its global smartphone marketshare from 2 percent to 4 percent in the past year. Microsoft grew its smartphone shipments by 178 percent annually in Q3 2013 and it is currently the world’s fastest growing major smartphone platform. Microsoft’s growth is almost entirely due to Nokia and its steadily improving Lumia portfolio across Europe, Asia and the United States. However, Microsoft is clearly still at a low level of share worldwide and it is struggling to gain serious traction in several major markets like Japan, South Korea and Africa.

Exhibit 1: Global Smartphone OS Shipments and Market Share in Q3 2013

Global Smartphone Operating System Shipments (Millions of Units)

Q3 '12

Q3 '13

Android

129.6

204.4

Apple

26.9

33.8

Microsoft

3.7

10.2

BlackBerry

7.4

2.5

Others

5.2

0.5

Total

172.8

251.4

 

 

 

Global Smartphone Operating System Marketshare  %

Q3 '12

Q3 '13

Android

75.0%

81.3%

Apple

15.6%

13.4%

Microsoft

2.1%

4.1%

BlackBerry

4.3%

1.0%

Others

3.0%

0.2%

Total

100.0%

100.0%

 

 

 

Total Growth Year-over-Year %

44.0%

45.5%

 

 

 

Source: Strategy Analytics

 

 

The full report, Microsoft Hits 10 Million for First Time as Android Reaches Record 81 Percent Share of Global Smartphone Shipments in Q3 2013, is available to subscribers of Strategy Analytics’ Wireless Smartphone Strategies (WSS) service now.