Wireless Smartphone Strategies

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

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 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.

 


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.


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.


October 28, 2013 18:06 nmawston

According to the latest research from our Wireless Smartphone Strategies (WSS) service, global smartphone shipments grew 45 percent annually to reach a record 251 million units in the third quarter of 2013. Samsung captured a record 35 percent share of all smartphone volumes worldwide, while Huawei jumped into third place in the rankings.

Global smartphone shipments grew 45 percent annually from 172.8 million units in Q3 2012 to 251.4 million in Q3 2013. This was the first time ever that smartphone shipments exceeded a quarter-billion units in a single quarter. Smartphones accounted for 6 in 10 of all mobile phones shipped worldwide. The smartphone industry’s robust growth is being driven by strong demand for LTE models in developed regions like the US and 3G devices in emerging markets such as China.

Samsung grew 55 percent annually and shipped a record 88.4 million smartphones worldwide, capturing a record 35 percent marketshare in Q3 2013. Samsung shipped over two times more smartphones than Apple during the quarter. While shipments of the flagship Galaxy S4 model softened, solid demand for the new Note 3 phablet and for mass-market devices like the Galaxy Y helped to lift Samsung’s volumes.

Apple shipped 33.8 million iPhones worldwide in Q3 2013, up from 26.9 million a year earlier. Apple grew just 26 percent annually during Q3 2013, which is around half the overall smartphone industry average of 45 percent. Apple’s global smartphone marketshare has dipped noticeably from 16 percent to 13 percent during the past year. Nonetheless, we expect Apple to rebound sharply and regain share in the upcoming fourth quarter of 2013 due to high demand for its new iPhone 5s model.

Huawei was a star performer as global shipments grew 67 percent annually to 12.7 million units in Q3 2013. Huawei captured 5 percent marketshare and became the world’s third largest smartphone vendor. The popular P6 and G610 models have been among the main drivers of Huawei’s success. Huawei remains very strong at home in China, but its position is less robust in other major markets like the US and Europe. Huawei will need to expand aggressively in the American and European markets if it wants to seriously challenge the big two of Samsung and Apple next year.

Other findings from our research include:

LG shipped 12.0 million smartphones worldwide for 5 percent marketshare in Q3 2013. LG grew 71 percent annually, making it the fastest-growing vendor among the top five brands. LG has been expanding rapidly in Europe, but China and India remain weak spots;

Lenovo shipped 10.8 million smartphones worldwide for 4 percent marketshare and fifth position in Q3 2013. Lenovo is popular among mass-market consumers in China and it is expanding internationally. Two of the world’s top five smartphone vendors came from China -- Lenovo and Huawei.


 Exhibit 1: Global Smartphone Vendor Shipments and Market Share in Q3 2013  [1]

Global Smartphone Vendor Shipments (Millions of Units)

Q3 '12

Q3 '13

Samsung

56.9

88.4

Apple

26.9

33.8

Huawei

7.6

12.7

LG

7.0

12.0

Lenovo

6.4

10.8

Others

68.0

93.7

Total

172.8

251.4

 

 

 

Global Smartphone Vendor Marketshare  %

Q3 '12

Q3 '13

Samsung

32.9%

35.2%

Apple

15.6%

13.4%

Huawei

4.4%

5.1%

LG

4.1%

4.8%

Lenovo

3.7%

4.3%

Others

39.4%

37.3%

Total

100.0%

100.0%

 

 

 

Total Growth Year-over-Year %

44.0%

45.5%

 

The full report, Huawei Reaches Third Place as Global Smartphone Shipments Reach Quarter-Billion Units in Q3 2013, is published by the Strategy Analytics Wireless Smartphone Strategies (WSS) service, details of which can be found here: http://tinyurl.com/bps9qhr.


Please contact Neil Mawston, at nmawston@strategyanalytics.com, for further analysis, data or information.

[1]  Numbers are rounded.


August 1, 2013 16:17 khyers

Boston, MA - August 1, 2013 - According to the latest research from Strategy Analytics, global smartphone shipments grew 47 percent annually to reach 230 million units in the second quarter of 2013. Android captured a record 80 percent share all smartphone volumes worldwide, while Microsoft solidified its position in third place.

Scott Bicheno, Senior Analyst at Strategy Analytics, said, "Global smartphone shipments grew 47 percent annually from 156.5 million units in Q2 2012 to 229.6 million in Q2 2013. Growth was driven by strong demand for Android models across all price-tiers in developed and developing markets, such as the US, China and Brazil. Android now accounts for an impressive 8 in 10 of all smartphones shipped on the planet."

Neil Mawston, Executive Director at Strategy Analytics, added, "The Android operating system captured a record 80 percent share of all smartphones shipped worldwide in the second quarter of 2013. Competitive licensing costs, numerous hardware partners and a large apps store continue to be among the main drivers of Android’s success. Apple iOS reached 14 percent global smartphone share in the quarter, its lowest level since Q2 2010. Microsoft slotted into third position with 4 percent share, reaching its highest level in the global smartphone market for three years."

Linda Sui, Analyst at Strategy Analytics, added, "Microsoft is making steady progress in the smartphone market due to strong support from Nokia. However, we believe Microsoft’s WP8 platform still needs to improve in at least two areas before it truly takes off. First, the license fee charged to smartphone makers for WP8 must be more competitive to compete with Android in lower price-bands. And second, Microsoft must dramatically accelerate its support for advanced technologies, such as octo-core chipsets, because WP8 continues to lag behind Android in the premium smartphone category."

Exhibit 1: Global Smartphone Operating System Shipments and Market Share in Q2 2013 [1]

Global Smartphone OS Shipments (Millions of Units) Q2 '12 Q2 '13
Android 108.7 182.6
Apple iOS 26 31.2
Microsoft 5.6 8.9
Others 16.2 6.9
Total 156.5 229.6
Global Smartphone OS Marketshare  % Q2 '12 Q2 '13
Android 69.50% 79.50%
Apple iOS 16.60% 13.60%
Microsoft 3.60% 3.90%
Others 10.40% 3.00%
Total 100.00% 100.00%
Total Growth Year-over-Year % 41.60% 46.70%
Source: Strategy Analytics, August 2013

The full report, Android Captures Record 80 Percent Share of Global Smartphone Shipments in Q2 2013, is published by the Strategy Analytics Wireless Smartphone Strategies (WSS) service, details of which can be found here: http://tinyurl.com/bps9qhr.

About Strategy Analytics:

Strategy Analytics is a global, independent research and consulting firm. The company is headquartered in Boston, USA, with offices in the UK, France, Germany, Japan, South Korea, India and China. Visit www.strategyanalytics.com for more information.

Americas Contact:
Ken Hyers / +1 617 614 0757 / KHyers@strategyanalytics.com

EMEA Contact:
Neil Mawston / +44 1908 423 628 / NMawston@strategyanalytics.com

Asia Contact:
Linda Sui / +1 617 614 0734 / LSui@strategyanalytics.com


[1] Numbers are rounded.


July 11, 2013 16:33 sbicheno

Former mobile handset market-leader Nokia unveiled its latest bid to reclaim its crown in New York today, in the form of the Lumia 1020 flagship Windows Phone smartphone. Our Wireless Smartphone Strategies (WSS) service was able to spend some quality time with Nokia prior to the event and here is our initial analysis.

Viewed from the front the 1020 looks a lot like its predecessor - the Lumia 920 - with a polycarbonate unibody case and a 4.5-inch display, and Nokia has also learnt from the tweaks it made to create the thinner and lighter Lumia 925. But the key innovation is immediately revealed when the 1020 is flipped over.

The 41MP camera introduced in the curiously Symbian-based Nokia 808 PureView a year ago has graduated to the main Lumia smartphone family in the 1020 - a fact clearly represented by the large, protruding camera module on the back of the device. This is required to house a sensor that captures images of 41MP resolution - many times more than any other phone available.

While this provides a useful marketing bullet-point, the real purpose of this feature is to overcome the zoom limitations presented by the mobile phone form factor. Now users can choose to zoom into their photos after they have been taken as part of a suite of post-processing tools available on the device. Nokia is keen to emphasise that this phone is more than just a combination of the 808 and the 920, it’s a completely new proposition, and the powerful tools available both during and after taking a photo appear to back that claim up.

At a time when product differentiation is so challenging in the smartphone industry, Nokia has made the strategic decision to go all-in on imaging. Incorporating the optical image stabilization and low-light capabilities introduced in the 920, right now the Lumia 1020 does appear to offer the best imaging experience of any handset. But it remains to be seen how attractive to the mainstream consumer such features will be and how long it will take the rest of the market to catch up.

Nokia has backed its still-extensive R&D operations to deliver some genuine hardware differentiation. Now that has been delivered it needs to reward them with its largest and most coherent marketing campaign yet - clearly communicating to the mass market why the PureView camera in the Lumia 1020 is worth investing in. The video below offers a glimpse of that campaign, as well as illustrating the new camera UI and the new 'Camera Grip' accessory. 

 

 


May 28, 2013 11:47 nmawston

Tizen OS is being heavily supported by Samsung and others as an alternative smartphone platform to Android. Is Tizen a credible Android challenger? Or will it be a "Bada 2.0" flop? Extensive analysis and Tizen smartphone forecasts for 88 countries can be downloaded by clients in this published report, from our Wireless Smartphone Strategies (WSS) service.


May 28, 2013 11:45 nmawston

Ubuntu OS is being hyped as an emerging smartphone platform that could be a long-term alternative to Android. What opportunities and threats does the Ubuntu OS face? Will it be low-cost enough and have a decent services ecosystem? Extensive analysis and forecasts for 88 countries can be downloaded by clients in this published report, from our Wireless Smartphone Strategies (WSS) service.


May 28, 2013 11:42 nmawston

Apple iOS has reached a fork in the strategic road. Should Apple continue along its current path and do nothing? Or should Apple downscale and upscale into smaller and bigger screens? Extensive analysis and forecasts of Apple iOS sales for 88 countries can be downloaded by clients in this published report, from our Wireless Smartphone Strategies (WSS) service.