Wireless Smartphone Strategies

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

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 7, 2014 15:20 khyers

Microsoft’s strategy to grow the Windows ecosystem for mobile devices has begun to pay dividends, with the company reporting that it has signed 50 new hardware partners since spring this year.  Beginning in April 2014 Microsoft announced that it would make its Windows OS platform available free to hardware vendors for devices smaller than nine (9) inches, a strategy it has adopted in order to rapidly grow the size of the operating system’s ecosystem.  Strategy Analytics’ WSS (Smartphones) service shows that sales of smartphones using the Windows Phone OS grew by 90% year-on-year in 2013, but that growth stalled in Q2 2014.  Microsoft’s new strategy, which is intended to encourage the development of devices costing less than $200, will help to drive smartphone sales of the platform going forward, though the biggest movement is not likely to be seen before 2015.

The report Global Smartphone OS Market Share by Region: Q2 2014 provides a complete view of the current standing of all of the mobile operating systems and is valuable for mobile stakeholders who want to size the huge market for smartphones and OS market share.


May 30, 2013 15:39 khyers

According to our Wireless Device Strategies (WDS) service, global mobile phone industry revenues grew +11% annually in Q1 2013. Profits increased annually due to a greater proportion of 3G and 4G models in the mix. Samsung and Apple dominate the industry and they are tightening their grip on value share, squeezing out almost all other rivals. Our new report provides quarterly global mobile phone ASPs, revenues and profit metrics for multiple major mobile phone OEMs from 2007 through 1Q 2013. Revenue share and profit share are also supplied. The published report can be downloaded by clients here.


January 10, 2012 15:07 Alex Spektor

Yesterday’s Nokia announcement at CES of an AT&T-bound Lumia 900 Windows Phone with LTE represents a significant win for the device vendor, whose marketshare in the smartphone-hungry North American market, as illustrated here, has been on a steady decline for at least the past 4 years.

Together with the earlier-announced T-Mobile version of the Lumia 710, Nokia will now have at least two smartphones selling in the US that are not based on Symbian, a platform that had only niche appeal to US consumers and operators.

According to the Strategy Analytics Handset Country Share Tracker (HCST) service, T-Mobile was Nokia’s most important operator client for smartphones in the US in 2011, as the vendor’s business-centric Eseries devices are long gone from AT&T’s portfolio. So what is likely to happen with the arrival of the two new Lumia models?

At AT&T:

  • Time-to-market will be a critical factor for the Lumia 900. Rival HTC has also just announced its first LTE Windows Phone, the Titan II, which could steal some of Nokia’s thunder with an early arrival. Highlighting unique-to-Nokia capabilities like Drive navigation will be critical in attracting Windows Phone buyers.
  • The Lumia 900 alone will not instantly catapult Nokia into first, second, or even third place at the operator, and the vendor will be faced from heavy competition from Samsung and HTC, both of whom will be fighting for the #2 spot behind Apple.
  • RIM, with its below-average superphone portfolio, could be hurt the most here. If, indeed, there is only room for 3 competing platforms, then AT&T’s OS-diverse portfolio could squeeze the BlackBerry maker’s volumes in 2012.

At T-Mobile:

  • Following the recent arrival of the Sprint iPhone, T-Mobile has become the only major US operator without a strong third platform.
  • The low-priced (US$50 with contract) Lumia 710 will have a lot of appeal to cost-sensitive feature phone upgraders.
  • Nokia will not compete with pricy HSPA+ 4G superphones, but rather will take volume from more low-end devices from Samsung and LG, as well as T-Mobile’s own myTouch brand, as consumers look for a simpler alternative to Android.

Ultimately, the success of these two handsets depends largely on the level of promotional support given to them by the operators, especially in retail stores where a lot consumers make their decisions based on sales rep recommendations. Nokia has been working closely with both carriers on this dimension, winning critical drive slots and retail display real estate.

Finally, it is worth to note the significance of both the AT&T and the T-Mobile phone carrying the Lumia sub-brand, rather than their own re-branding. Globally recognizable, memorable sub-brands have been key parts of the strategy for the world’s leading smartphone vendors (e.g., Apple’s iPhone and Samsung’s Galaxy). In the operator-dominated US market shared brands are still a rarity, and we see this as a positive sign for Nokia’s long-term recovery.

Alex Spektor
Wireless Smartphone Strategies


January 5, 2012 10:58 sbicheno

This year’s Consumer Electronics Show (CES) takes place in Las Vegas, USA, from Tuesday 10th to Friday 13th January, 2012. There will be dozens of major and minor announcements vying for your attention, but here are three trends we recommend to look out for at the show:

 

1. Windows Phone LTE handsets

While the main mobile event of the year -- MWC -- occurs a mere six weeks afterwards, CES tends to feature a number of major handset launches of its own -- especially those with a strong focus on the valuable US market. This year, the Windows Phone ecosystem plans to revitalize its assault on the US market with a raft of LTE handsets to counter Android 4.0, Apple iOS 5 and BB10.

A hotly tipped 4G model is the successor to the Nokia Lumia 800, Nokia’s first flagship Windows phone, which was not launched in the US. Instead, Americans could get the opportunity to see what may be Nokia’s first ever superphone, perhaps an enhanced Lumia 800 with a larger screen and LTE, which could be called the Lumia 900 or simply the Nokia Ace. It is important that Nokia gets its sub-branding right for the American market, so we will be watching this one closely.

Elsewhere, HTC should be ready to launch its own LTE Windows Phone devices, while rumors indicate Samsung’s contribution to that market may also be imminent. Sony Ericsson, despite being a launch partner for Windows Phone 7, has been conspicuous by its absence so far. That might be about to change, however, if the ‘tile’ theme for its official pre-show teaser (below) is anything to go by.



 
 Source: Sony Ericsson



2. Intel Medfield devices

Despite initial hype, we’ve seen few LG Windows Phone launches in recent quarters. Two years ago LG was a lead OEM partner for Intel’s Moorestown mobile chip. Unperturbed by the absence of that chip in the broader marketplace, rumor has it that the successor to Moorestown -- the 32nm Medfield chip -- could soon make its public debut inside an LG handset.

After keeping a low mobile profile in 2011 (excluding the Infineon purchase), we expect Intel to make a bigger noise about Medfield at CES this year. While it remains to be seen whether the chip giant has managed to crack the handset market, we would be surprised if Intel didn’t significantly raise its profile in tablets, with the anticipated launch later this year of Microsoft’s Windows Phone 8 and Windows 8 possibly its best opportunity yet.

But the loudest Intel-related noise may well come from ultrabooks -- the ‘thin, light and fast bootup’ notebook platform designed to serve the market demand suggested by the popularity of the Apple MacBook Air and iPad. While not all of the ultrabooks will feature 3G chipsets, they are being positioned as ‘ultra-mobile’ devices, so that would eventually seem a natural feature for many to have.

 

3. More smartphone-to-smart-TV convergence?

2012 is the year that many major players will have a fresh crack at smart TVs. Google’s first effort last year ran out of steam pretty quickly, while Apple is publicly treating TV as nothing more than a hobby. However, we expect both companies to renew their focus on the living room in 2012, and where better to make a statement of intent than CES?

Given the expected overlap with their mobile platforms -- Android and iOS -- it stands to reason that Google and Apple will look for ways to more closely integrate your mobile device with your TV. Not only does this increase the functionality for end-users -- for example, by using the device as a remote control for media streaming -- but potentially leverages the existing commercial relationship into new product areas. Apple will not be formally present at CES, of course, but Android hardware partners we recommend investigating at the show include Samsung, LG, Sony and even Vizio.



December 22, 2010 16:12 bjoy
Nokia has a healthy working relationship with Microsoft, and the partnership has been growing over the past few years. Recent initiatives include:
  • Microsoft Office Mobile Suite for Symbian.
  • Microsoft Sliverlight for Symbian.
  • The Nokia Booklet, a 3G netbook based on Windows 7.
On the organization front, Stephen Elop, a Microsoft veteran, took over the helms at Nokia earlier this year, bringing both companies closer than ever. While Sliverlight, Microsoft Office, and Windows 7 netbook initiatives are all signs of a healthy partnership, embracing the WP7 platform in its totality takes the relationship to the next level. Shifting the building blocks of your device/software/service ecosystem in favor of third parties is no small decision and will have effect on your intangible sub-brand assets such as Ovi. And that exactly is the rumor from this week, that Nokia will launch WP7 devices in 2011. While we have no official version of the story, it would be interesting to assess the impact of such a partnership in the market. On the positive side, Nokia’s industrial design, distribution and supply chain process are among the best in the industry. WP7 will gain a strong partner in Nokia to bring the best-in-class devices among Windows Phone series. But how much of an impact it will have on Nokia’s platform portfolio, positioning and regional priorities? Where WP7 sits in Nokia’s portfolio?                                        Given the base set of high-end hardware requirements for WP7, the Nokia WP7 device will be positioned in the same premium space occupied by the MeeGo platform. Will Nokia abandon the MeeGo platform in favor of WP7? Or are they going to co-exist, with WP7 focusing on the prosumer and business segments along the same lines of the S60 E-Series? Will there be any major shift in regional platform trends? USA: With an estimated 6% marketshare in 2010 (nearly all basic and featurephones), Nokia has been steadily losing marketshare and carrier shelf space in the US. The partnership is unlikely to change the competitive landscape in the US market, where Apple, HTC, Motorola and Samsung lead the operator shelves. WP7 LTE phones in H2 2011 / H1 2012 might be a potential option for Nokia to make inroads in the US. Western Europe: Microsoft will find more acceptance in carrier channels through Nokia in Western Europe. But beyond the “foot in the  door” strategy, the partnership will have to do little with the success of the platform. In emerging markets, where Nokia has the broadest reach in mid-tier smartphones, the WP7 will be not be the obvious choice for the cost sensitive segments. We believe Nokia will continue to rely on the S60 platform in the mid-tier smartphone segment. Overall, while the idea of a Nokia WP7 device looks like a big win for Microsoft, it’s unlikely to change the prospects of Nokia or WP7 in the smartphone department. Nevertheless, Nokia needs to raise its profile in the US, and this would be a step in the right direction, but it will need step-changes in distribution and subsidies. But for the most part, it’s going to be just another partnership for Microsoft and Nokia – you’re only as strong as your weakest link. - Bonny Joy