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.


October 28, 2014 21:14 nmawston

According to a new report from our WSS (Smartphones) research servcice, Apple shipped 39 million iPhones worldwide in Q3 2014. Its annual shipment growth rate was only +16% and it continues to slow down. However, weaker shipments are being offset by a stronger ASP, which increased for the first time in two years due to a higher mix of expensive iPhone 6 models. More analysis of Apple's pricing can be viewed by clients here.


October 20, 2014 15:20 nmawston

According to a new report from our Wireless Smartphone Strategies (WSS) service, Blackberry captured 1% smartphone share worldwide in Q3 2014. The company’s hardware division is finally on the cusp of returning to profits for the first time in three years. Cost cuts (e.g. outsourcing) and improved BB10 designs -- like the Z3 and Passport models -- are driving the vendor’s enhanced performance. Additional analysis can be viewed by clients here.


October 2, 2014 23:21 lsui

According to a new report from our Wireless Smartphone Strategies (WSS) service -- Global Smartphone Sales by 17 Technologies : 2007 -2017 -- HSUPA / HSPA+ will be replaced by LTE as the world's most widely used smartphone air-interface technology in 2015.

We forecast 4G technoligy to account for 38% of total global smartphone sales in 2014, rising to 45% in 2015. Moreover, LTE-Advanced will entend into more markets from 2014 onwards.

China will surpass USA to become the largest LTE smartphone market globally in 2014.

 


September 20, 2014 06:20 lsui

According to the latest report from our Wireless Smartphone Strategies (WSS) service: Global Smartphone Sales Forecast for 88 Countries : 2007 to 2020, global smartphone sales will grow +13% in 2015, offseting the slowdown in feature phones.

Asia Pacific will remain the growth driver, accounting for half of global volumes in 2015. China and US will remain the largest smartphone sales countries through 2015. India will surpass the US to become the 2nd larget market by 2019. Central Latin America and Africa Middle East will see strong smartphone growth through 2020 and play a role as a new growth engine for the global market.

The world's top 20 countries will account for 8 in 10 of global smartphone volumes in 2015.


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 18, 2014 11:54 nmawston

The French mobile phone market dipped 5% YoY in Q2 2014, in keeping with the longer-term trend of slightly sluggish growth in the country. Among vendors, Samsung and Apple retained the top two spots, but both brands lost share. Local vendor, Wiko, continued to make impressive gains -- although, there are signs it may be slowing. This published report, available to clients, tracks handset vendor marketshare at the four major French operators -- Orange, SFR, Bouygues Telecom and Free Mobile -- from Q1 2009 to Q2 2014. The report is an important tool for measuring the health of individual handset brands at the operator level.


September 9, 2014 22:28 lsui

As expected, the newly launched Apple iPhone 6 and 6 Plus did NOT contain many surprises, as some features (size and NFC etc.) had already leaked before. However, there are a few things missing that caught the attention of analysts in our WSS (Smartphones) research service:

1. No 32GB version for both models. Now, 64GB has filled the position of 32GB, and Apple futher extended this with a 128GB version. Apple is not the first vendor to launch a 128GB version (e.g. Meizu MX3 128GB), but we believe the cheaper 16GB version will still make up a big chunk of iPhone 6 and 6 Plus volumes. Meanwhile, the 64GB and 128GB models will, of course, help Apple to maintain a higher-pricing position;

2. The rumored sapphire crystal display did not come true with the new iPhones. Instead, Apple adopted it into the Apple Watch, a small-screen device. We suspect manufaturing capacity might be a key reason for Apple not adopting a sapphire display in its new iPhones;

3. Not LTE Cat 6 powered. The iPhone 5 and 5s were powered with LTE Cat 3 chipsets, and some expected new iPhones to have Cat 6, the most advanced 4G chipset, allowing 300Mbps downlink rate. However, it has ended up that the iPhone 6 and 6 Plus only support 150Mbps Cat 4 category;

4. Camera function did not make a major improvement. Since the iPhone 4S, Apple has not significantly enhanced the camera function. The iPhone 6 and 6 Plus still feature an 8-megapixel camera, and it is not supporting 4K video-catpure. Apple is lagging here on these tech specs;

5. China (mainland) is not on the first 9-country list. Different from last year, China is NOT on the first 9-country list at launch. The iPhone 6 and 6 Plus will be available in US, Canada, UK, France, Germany, Australia, Japan, Singapore and Hong Kong on September 19th, 2014. We suspect China clamping down on the iPhone in the government sector may have caused the change. This could become a serious challenge for Apple.


September 3, 2014 01:33 lsui

According to a new report from our Wireless Smartphone Strategies (WSS) service -- Value Share : Global Smartphone Revenue and ASP by Vendor by Price-Tier : Q2 2014 -- Lenovo became the world's largest smartphone vendor by volume in the entry-tier category in the second quarter of 2014. This is a first for the company.

However, we note the vast majority of Lenovo's smartphone shipments are generated in its home market of China. Outside China, Lenovo remains a tiny second-tier smartphone brand at the moment.

More analysis of Lenovo and smartphone shipments by price-tier can be viewed by clients here.


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.