Wireless Smartphone Strategies

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

November 6, 2014 05:25 woh

Samsung, the world's biggest smartphone vendor by volume, has officially announced a new duo of premium-looking metal smartphones, A3 and A5, at the end of October, 2014 and is planning on hard-launching them in November in select markets, mostly emerging markets, such as China at affordable price-points to address the mounting competition from local vendors. A3 and A5, which are the first two smartphones under the category of the new Galaxy A series, are believed to target the younger and first-time smartphone users in the growing emerging markets, with nice-looking metal unibody design, modest specifications and mid-ranged prices.

In addition to the metal design, it would be worth noting that these mid-priced smartphones are featuring 4G LTE connectivity and 5MP secondary camera, which is better than 3.7MP on more premium Galaxy Note 4. We believe that Samsung is taking on a selective marketing for the younger generation who wants to enjoy the faster data services on the faster 4G network, and spends much time to take the "selfie" photos in developing regions. There has been no words on the more advanced Galaxy A7 model, but will be expected to come with higher display resolution and stronger feature-sets later on.


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.


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 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.


July 31, 2014 05:50 nmawston

According to the latest research from our WSS (Smartphones) service, global smartphone shipments grew 27 percent annually to reach 295 million units in the second quarter of 2014. Xiaomi was the star performer, capturing a record 5 percent marketshare and becoming the world’s fifth largest smartphone vendor for the first time ever.

Global smartphone shipments grew 27 percent annually from 233.0 million units in Q2 2013 to 295.2 million in Q2 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 changes in the operator subsidy mix.

Samsung shipped 74.5 million smartphones worldwide and captured 25 percent marketshare in Q2 2014, dipping from 33 percent a year earlier. Samsung continues to face tough competition from Apple at the higher-end of the smartphone market and from Chinese brands like Huawei at the lower-end. Apple grew a below-average 13 percent annually and shipped 35.2 million iPhones worldwide for 12 percent marketshare in Q2 2014. Apple is currently in a holding pattern awaiting the expected launch of bigger-screen iPhones later this year. Huawei maintained third position in smartphones globally with a record 7 percent marketshare. Huawei is making strong gains in the high-growth LTE market with popular models such as the Ascend P7. In contrast, Lenovo is struggling in the fast-emerging LTE segment and as a result its global smartphone marketshare stayed broadly flat around the 5 percent range. Lenovo’s smartphone growth has more than halved in the past year and its rapid expansion seen in recent quarters is coming to an end.

Xiaomi was the star performer in the quarter, capturing a record 5 percent marketshare and rising into fifth 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 will have to invest big money to familiarize western consumers with its unfamiliar brand name. LG held sixth place for 5 percent global smartphone share and a record 14.5 million units shipped. LG is performing relatively well in the United States and Europe, but it continues to lag in the huge China and India markets.

Exhibit 1: Global Smartphone Vendor Shipments and Marketshare in Q2 2014 [1]

Global Smartphone Vendor Shipments (Millions of Units)

Q2 '13

Q2 '14

Samsung

76.0

74.5

Apple

31.2

35.2

Huawei

11.1

20.1

Lenovo

11.3

15.8

Xiaomi

4.1

15.1

LG

12.1

14.5

Others

87.2

120.0

Total

233.0

295.2

 

 

 

Global Smartphone Vendor Marketshare  %

Q2 '13

Q2 '14

Samsung

32.6%

25.2%

Apple

13.4%

11.9%

Huawei

4.8%

6.8%

Lenovo

4.8%

5.4%

Xiaomi

1.8%

5.1%

LG

5.2%

4.9%

Others

37.4%

40.6%

Total

100.0%

100.0%

 

 

 

Total Growth Year-over-Year %

48.9%

26.7%

 

 

 

Source: Strategy Analytics

 

 

 


[1] Numbers are rounded.


July 30, 2014 23:55 nmawston

According to the latest research from our WSS (Smarpthones) service, global smartphone shipments reached 295 million units in the second quarter of 2014. The Android operating system captured a new record of 85 percent global marketshare, mainly at the expense of BlackBerry, Apple iOS and Microsoft Windows Phone.

Global smartphone shipments grew 27 percent annually from 233.0 million units in Q2 2013 to 295.2 million in Q2 2014. We estimate worldwide smartphone growth has halved during the past year, from 49 percent a year ago to 27 percent today. Global smartphone growth in the current quarter is at its lowest level for five years, and there are wide variations by region. For example, Africa and Asia are booming, while North America and Europe are maturing.

Android’s domination of global smartphone shipments reached a new peak in Q2 2014, with an impressive 85 percent of all smartphones now running Google’s OS. Android’s gain came at the expense of every major rival platform. BlackBerry saw its global smartphone share tumble from 2 percent to 1 percent in the past year due to a weak line-up 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 the United States and China, and its global smartphone marketshare fell from 4 percent in Q2 2013 to just 3 percent during Q2 2014.

Like the PC market, Android is on the verge of turning smartphone platforms into a one-horse race. Its low-cost services and user-friendly software remain wildly attractive to hardware makers, operators and consumers worldwide. Rival OS vendors are going to have to do something revolutionary to overturn Android’s huge lead in smartphone shipments. Apple’s push into the big-screen phablet market and Firefox’s expansion into the ultra-low-cost smartphone market later this year are the only major threats to Android’s continued growth at this stage.

Exhibit 1: Global Smartphone OS Shipments and Market Share in Q2 2014 [1]

Global Smartphone OS Shipments (Millions of Units) Q2 '13 Q2 '14
Android 186.8 249.6
Apple iOS 31.2 35.2
Microsoft 8.9 8.0
Blackberry 5.7 1.9
Others 0.5 0.5
Total 233.0 295.2
     
Global Smartphone OS Marketshare  % Q2 '13 Q2 '14
Android 80.2% 84.6%
Apple iOS 13.4% 11.9%
Microsoft 3.8% 2.7%
Blackberry 2.4% 0.6%
Others 0.2% 0.2%
Total 100.0% 100.0%
     
Total Growth Year-over-Year % 48.9% 26.7%
     
Source: Strategy Analytics    


[1] Numbers are rounded.