Wireless Smartphone Strategies

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

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.


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.


January 27, 2015 05:26 lsui

Motorola has recently announced to reenter China by launching Moto X, Moto G and Moto X Pro, three smartphone models, on Jan 26th, 2015, in Beijing. More than one year has passed since Motorola previously completely pulled out from the world's largest smartphone market in the second half of 2013.

Moto X and Moto Pro target the premium-tier segment, and Moto G, one of Motorola's best-selling models in 2014, eyes the mid-tier segment. Motorola will work closely with online retailers to sell the three phones, including Jingdong, T-Mall etc.

Motorola believe their key differentiators are full technology enablement (e.g. supporting China Mobile, China Telecom and China Unicom for all 3G and 4G technologies), a "pure" Android UI, as well as customized service / software offerings. However, there are already many full-technology-enabled models from ZTE and other local vendors available in China at the moment. Those latter two models from Motorola will find it hard to stand out from rivals.

Reintroducing Motorola-branded phones to China will dilute Lenovo's shift up-tier and also its online intiatives. Lenovo has the Vibe sub-brand targeting premium-tier segments, and it has just set up an online sub-brand and division -- Magic Factory -- in H2 2014. For Lenovo and Motorola, it will be a challenge to balance and manage these multiple brands in such a crowded Chinese marketplace this year.

Moreover, it remains to be seen whether Chinese consumers still value the Motorola brand and whether they will embrace a "new" Motorola. For us, this looks like a risky move by a struggling Lenovo desperate to re-jazz its fading smartphone growth at home.

NI HAO, MOTO!


January 5, 2015 14:34 nmawston

Micromax has partnered with Cyanogen -- an Android fork -- to launch its online-only smartphone sub-brand, YU, in India during H1 2015. Micromax is terrified of Xiaomi and the firm is stepping up its efforts to stop the rise of Xiaomi and other rival Chinese vendors. However, the YU program fragments the Android ecosystem and Google will NOT be overjoyed by this latest move from Micromax. More analysis of this emerging challenge for Google can be downloaded by clients here.



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.


November 26, 2014 13:19 PLin

According to the latest report -- ‘Smartphone Vendor ASP and Revenue Share by Region: Q3 2014 -- from our Handset Country Share Tracker (HCST) research service, global smartphone industry revenues rose +13% annually in Q3 2014. Apple regained the first spot by revenue. Samsung dipped to second spot by revenue, but maintained its first place in volume. LG maintained third by volume. For the first time ever, Xiaomi jumped into the top 5 list by smartphone revenue, driven by strong shipments growth. 

Our extensive
report -- available to clients here -- provides quarterly global smartphone wholesale ASP, revenue and shipment metrics for 16 major OEMs across six major regions from Q1 2012 to Q3 2014. It is a valuable tool for operators, component manufacturers, carmakers, financial analysts and other stakeholders who want to track smartphone pricing and the financial health of major vendors on a regional basis.


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.