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 4, 2014 19:04 khyers

Taiwan’s HTC has released the M8, its latest flagship smartphone and successor to the One which won numerous Phone of the Year awards in 2013.  The M8 appears well positioned to bag a number of similar awards for 2014, but will near-universal acclaim be enough to drive sales?  This published report – available for clients – identifies the strengths and weaknesses of the M8 and what HTC needs to do in order to drive sales of its latest flagship device.


February 7, 2014 17:19 nmawston

According to our Wireless Smartphone Strategies (WSS) service, smartphone shipments dipped -7% annually in North America during the fourth quarter of 2013. Apple jumped ahead of Samsung and LG, on the strength of the new iPhone 5s, but the lackluster appeal of the 5c was a disappointment. Android lost a few points of share from a year earlier, as Apple iOS fought back. Meanwhile, Microsoft overtook BlackBerry to cement its position as the region's third largest platform.

This published report -- available to clients -- contains quarterly smartphone shipments and marketshare for the top 20 vendors and top 5 operating systems in the valuable United States and Canada markets for Q4 2013.


January 29, 2014 22:36 nmawston

Google today confirmed officially that it has sold off its Motorola smartphone business to Lenovo of China for US$3 billion. Much less than the US$12 billion Google paid for Motorola in 2012.

According to our Wireless Smartphone Strategies (WSS) service, the combined entity of Lenovo and Motorola captured 6% share of global smartphone shipments in 2013.

As a result of this new deal -- assuming it is approved by US, Chinese and other authorities -- Lenovo-Motorola becomes instantly the world's 3rd largest smartphone vendor by volume, behind Samsung (32%) and Apple (15%).

For Lenovo, it is a good move. The Chinese vendor gets access to the valuable US smartphone market and the fast-growing Latin America region. This complements its existing global PC business.

For Motorola, it gains access to an ambitious sugar daddy that has a strong presence in the huge China market.

For Google, it divests a loss-making hardware division.

Companies that will be worried by the Lenovo-Motorola deal include Samsung, Apple, LG, Sony, Huawei, ZTE, Xiaomi, Coolpad, TCL-Alcatel and others.

Lenovo now has extra scale in smartphones and a seat near the top table. However, whether Lenovo can turnaround the long-struggling Motorola business, and what happens to the Motorola brand long-term, remain key questions that will need to be answered in the coming months.

 


January 29, 2014 13:35 nmawston

According to the latest research from our Wireless Smartphone Strategies (WSS) service, global smartphone shipments grew 41 percent annually to reach a record 990 million units in 2013. Android captured 79 percent share of all smartphones shipped worldwide and extended its lead over Apple, Microsoft and other rivals.

Global smartphone shipments grew 34 percent annually from 217.0 million units in Q4 2012 to 290.2 million in Q4 2013. Global smartphone shipments for the full year were just shy of the 1 billion level, but they nonetheless reached a record 990.0 million units in 2013, increasing from 700.1 million in 2012. Global smartphone shipment growth decreased slightly from 43 percent in 2012 to 41% in 2013, due to high penetration in some major markets like the United States.

Android shipped a record 781.2 million smartphones worldwide for 79 percent marketshare in 2013. Android shipped four times more smartphones than Apple and Microsoft combined. There is little doubt that 2013 was the year of Android. However, Android’s annual growth rate slowed to 62 percent in 2013, its lowest level in the platform’s history. We expect Android’s growth to slow further in 2014 due to market saturation, and rivals like Microsoft or Firefox will be ready to pounce on any signs of a major slowdown for Android this year.

Apple iOS grew a sluggish 13 percent annually and shipped 153.4 million smartphones worldwide for 15 percent marketshare during 2013. Despite record volumes, 2013 is arguably a year that Apple will want to forget as growth slowed sharply and its new 5c model performed less strongly than expected.

Microsoft is now firmly established as the smartphone industry’s third major ecosystem, shipping 35.7 million units worldwide to capture 4 percent marketshare in 2013. However, the Windows Phone platform is still struggling to gain traction in the low-tier and premium-tier smartphone categories and they remain serious weaknesses that Microsoft will need to address in 2014.

More analysis of the software players in the quarter can be downloaded by clients in this published report.

Exhibit 1: Global Smartphone OS Shipments and Market Share in Q4 2013 [1]

Global Smartphone Operating System Shipments (Millions of Units)

Q4 '12

2012

Q4 '13

2013

Android

152.5

481.5

227.7

781.2

Apple iOS

47.8

135.8

51.0

153.4

Microsoft

5.9

18.8

9.4

35.7

Others

10.8

64.0

2.2

19.8

Total

217.0

700.1

290.2

990.0

 

 

 

 

 

Global Smartphone Operating System Marketshare  %

Q4 '12

2012

Q4 '13

2013

Android

70.3%

68.8%

78.4%

78.9%

Apple iOS

22.0%

19.4%

17.6%

15.5%

Microsoft

2.7%

2.7%

3.2%

3.6%

Others

5.0%

9.1%

0.7%

2.0%

Total

100.0%

100.0%

100.0%

100.0%

 

 

 

 

 

Total Growth Year-over-Year %

38.2%

42.7%

33.7%

41.4%

 

 

 

 

 

Source: Strategy Analytics

 

 

 

 

 


[1] Numbers are rounded.


January 27, 2014 23:24 khyers

According to the latest research from our Wireless Smartphone Strategies (WSS) service, global smartphone shipments grew 41 percent annually to reach a record 990 million units in 2013. Huawei, Lenovo and LG were the star performers, capturing a combined 14 percent marketshare worldwide and closing the gap on Apple.

Global smartphone shipments grew 34 percent annually from 217.0 million units in Q4 2012 to 290.2 million in Q4 2013. Global smartphone shipments for the full year were just shy of the 1 billion level, but they nonetheless reached a record 990.0 million units in 2013, increasing from 700.1 million in 2012. Global smartphone shipment growth decreased slightly from 43 percent in 2012 to 41% in 2013, due to high penetration in some major markets like the United States.

Samsung shipped a record 319.8 million smartphones worldwide and captured 32 percent marketshare in 2013. This was the largest number of units ever shipped by a smartphone vendor in a single year. Despite tough competition from a long tail of Chinese and American brands, Samsung continued to deliver numerous hit models, such as the Galaxy S4 and Note 3.

Apple grew a sluggish 13 percent annually and shipped 153.4 million smartphones worldwide for 15 percent marketshare in 2013, dipping from the 19 percent level recorded in 2012. Apple remains strong in the high-end smartphone segment, but a lack of presence in the low-end category is costing it lost volumes in fast-growing emerging markets such as India.

Samsung and Apple together accounted for almost half of all smartphones shipped worldwide in 2013. Large marketing budgets, extensive distribution channels and attractive product portfolios have enabled Samsung and Apple to maintain their grip on the smartphone industry. However, there is clearly now more competition coming from the second-tier smartphone brands. Huawei, LG and Lenovo each grew their smartphone shipments around two times faster than the global industry average and captured a combined 14 percent marketshare. Huawei is expanding swiftly in Europe, while LG’s Optimus range is proving popular in Latin America, and Lenovo’s Android models are selling at competitive price-points across China. Samsung and Apple will need to fight hard to hold off these and other hungry challengers during 2014.”

Exhibit 1: Global Smartphone Vendor Shipments and Market Share in Q4 2013   [1]

Global Smartphone Vendor Shipments (Millions of Units)

Q4 '12

2012

Q4 '13

2013

Samsung

63.0

213.0

86.0

319.8

Apple

47.8

135.8

51.0

153.4

Huawei

10.9

30.2

16.6

50.4

LG

8.6

26.3

13.2

47.6

Lenovo

9.2

23.5

13.6

45.5

Others

77.5

271.3

109.8

373.3

Total

217.0

700.1

290.2

990.0

 

 

 

 

 

Global Smartphone Vendor Marketshare  %

Q4 '12

2012

Q4 '13

2013

Samsung

29.0%

30.4%

29.6%

32.3%

Apple

22.0%

19.4%

17.6%

15.5%

Huawei

5.0%

4.3%

5.7%

5.1%

LG

4.0%

3.8%

4.5%

4.8%

Lenovo

4.2%

3.4%

4.7%

4.6%

Others

35.7%

38.8%

37.8%

37.7%

Total

100.0%

100.0%

100.0%

100.0%

 

 

 

 

 

Total Growth Year-over-Year %

38.2%

42.7%

33.7%

41.4%

 

 

 

 

 

Source: Strategy Analytics

 

 

 

 

The full report, Global Smartphone Shipments Reach a Record 990 Million Units in 2013, is published by the Strategy Analytics Wireless Smartphone Strategies (WSS) service, details of which can be found here.


 

[1]  Numbers are rounded.


January 23, 2014 19:57 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 Wireless Smartphone Strategies (WSS) service, identifies the geographies, product categories and price-tiers that will offer HP a best chance of success should it choose to re-enter the smartphone market once more in 2014.


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.