Wireless Smartphone Strategies

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

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.


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 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.


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 31, 2014 05:50 nmawston

According to the latest research from our WSS (Smartphones) service, global smartphone shipments grew 27 percent annually to reach 295 million units in the second quarter of 2014. Xiaomi was the star performer, capturing a record 5 percent marketshare and becoming the world’s fifth largest smartphone vendor for the first time ever.

Global smartphone shipments grew 27 percent annually from 233.0 million units in Q2 2013 to 295.2 million in Q2 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 changes in the operator subsidy mix.

Samsung shipped 74.5 million smartphones worldwide and captured 25 percent marketshare in Q2 2014, dipping from 33 percent a year earlier. 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 13 percent annually and shipped 35.2 million iPhones worldwide for 12 percent marketshare in Q2 2014. Apple is currently in a holding pattern awaiting the expected launch of bigger-screen iPhones later this year. Huawei maintained third position in smartphones globally with a record 7 percent marketshare. Huawei is making strong gains in the high-growth LTE market with popular models such as the Ascend P7. In contrast, Lenovo is struggling in the fast-emerging LTE segment and as a result its global smartphone marketshare stayed broadly flat around the 5 percent range. Lenovo’s smartphone growth has more than halved in the past year and its rapid expansion seen in recent quarters is coming to an end.

Xiaomi was the star performer in the quarter, capturing a record 5 percent marketshare and rising into fifth 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 will have to invest big money to familiarize western consumers with its unfamiliar brand name. LG held sixth place for 5 percent global smartphone share and a record 14.5 million units shipped. LG is performing relatively well in the United States and Europe, but it continues to lag in the huge China and India markets.

Exhibit 1: Global Smartphone Vendor Shipments and Marketshare in Q2 2014 [1]

Global Smartphone Vendor Shipments (Millions of Units)

Q2 '13

Q2 '14

Samsung

76.0

74.5

Apple

31.2

35.2

Huawei

11.1

20.1

Lenovo

11.3

15.8

Xiaomi

4.1

15.1

LG

12.1

14.5

Others

87.2

120.0

Total

233.0

295.2

 

 

 

Global Smartphone Vendor Marketshare  %

Q2 '13

Q2 '14

Samsung

32.6%

25.2%

Apple

13.4%

11.9%

Huawei

4.8%

6.8%

Lenovo

4.8%

5.4%

Xiaomi

1.8%

5.1%

LG

5.2%

4.9%

Others

37.4%

40.6%

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.


July 17, 2014 18:14 nmawston

Mozille announced today that its Firefox OS is now available on 7 smartphone models at 5 major carriers in 15 countries worldwide. Latin America and Europe are the current regions of availability, with Asia next on the roadmap.

Clients of our Wireless Smartphone Strategies (WSS) service can download our global Firefox smartphone sales, installed base and user base forecasts across 88 countries through 2018 at this weblink.


June 10, 2014 15:50 lsui

At the breakout session today -- in ZTE's annual analyst event in China -- the keywords are online channel and voice interaction.

Like many other Chinese vendors, ZTE has emphasized the critical role that online distribution channels play in branding equity enhancement. For instance, all of its three 4G models recently launched focus on online channels by working with big Chinese e-tailers, such as JD and T-Mall. ZTE targets that 20% of total smartphone sales this year will go via the online channel. Interestingly, offline and online is not completely exclusive. In contrast, as we have seen from Xiaomi, ZTE also tries to leverage online resources to do branding, and blur the boundary between the two to bring more online models to offline channels to generate volumes. For example, it plans to open up over hundreds of Nubia physical stores this year to enhance the penetration into offline channels.

ZTE showcased more voice-recognition usages today, such as voice-print unlocking, voice navigation, etc. ZTE claims the voice-recognition rate has improved to over 90% with its own technology by working with Nuance and other technical partners. Moreover, it will adopt more voice-interaction functions by integrating it with ZTE's own UI-MiFavor 3.0 later this year.  We like the idea very much, but it remains to be seen how users / consumers will embrace it or not -- the industry might need a more influential American player, such as Apple, to make voice-recognition adoption more widely available.

Something missing today from the session was the topic of LTE-Advanced -- it was not really covered. It is also surprising that ZTE confirmed they will adopt their own chipset mainly in modem products -- rather than their own smartphones -- in the short term, making us suspect it might still need time to improve and optimize the chipset products for cellphones.


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.