Our Wireless Device Strategies (WDS) services published VALUE SHARE: Global Handset Revenue, ASP and Profit
in Q1 2013 report today. Please click here to access the full report.

Global handset wholesale (trade) revenues grew +11% from a year earlier in Q1 2013. Revenues for the handset industry are growing faster than shipments, which slipped -1% year-over-year. A greater mix of higher-priced 3G and 4G LTE models drove the spike in revenues.

Global operating profit for the entire handset industry growing just +5% YoY this quarter, which is slower than the +28% YoY growth rate recorded in all of 2012. The profit slowdown was caused by weaker financials from giant Apple and its terrible iPhone profit growth rate of -17% YoY. In contrast, Samsung recorded an all-time-high profit, growing a significant +58% YoY. Despite Apple's stalled performance, the US vendor and Samsung remain well in charge and they continued to capture a combined near-100% share of all worldwide profits in the quarter.

Global handset industry wholesale ASP jumped +12% YoY in Q1 2013. This was above the +10% YoY growth rate for all of 2012. Average pricing was boosted upwards during the first quarter by a much lower ratio of entry-level 2G handset volumes shipped in all regions worldwide.

Samsung led Industry revenues in Q1 2013, outpacing Apple by a narrow margin, to regain the no.1 position for the first time in two quarters. Samsung and Apple remain in a close race and together captured two-thirds of worldwide handset revenues, as the market has entered a duopoly-like situation. We believe Samsung dominates profits in the 3G Android phone segment, while Apple leads profits in the 4G LTE handset category.

This report provides quarterly global handset ASPs, revenues and profit metrics for multiple major handset OEMs from 2007 through 1Q 2013. Revenue share and profit share are also supplied. The report is a highly valuable tool for operators, component makers, automotive players and financial analysts who want to track the financial health and pricing of mobile phone vendors.

The new Jolla smartphone and Sailfish OS have been pre-released and created some global media coverage this week. Will Jolla and Sailfish take off or flop?

Our Wireless Smartphone Strategies (WSS) service published a report on this a few months back and clients can read our analysis here.

Three recent television interviews, each about 5 minutes in length, from Neil Mawston and Neil Shah in our Wireless Device Strategies (WDS) research service:

1. Wall Street Journal (WSJ) TV: What is Google and Android's Outlook?:
http://online.wsj.com/article/SB10001424127887324715704578483542256150334.html


2. China Central Television (CCTV): Nokia, Blackberry and Smartphone Trends:
http://www.youtube.com/watch?v=3CGzEWkRJ4Q


3. Huawei TV Interview: What is the Outlook for the Chinese Giant in Mobile Devices?:
https://ubm.box.com/s/cp57ebmtjmoa8fv3kkre

Global handset shipments dipped 1% annually during the first quarter of 2013. Developed and emerging markets slowed, but Asia remained the world's fastest-growing region.

Samsung, Lenovo and Coolpad registered the highest global growth rates, starting the year on relatively positive notes. While Samsung maintained the pole position as the largest handset supplier worldwide, Chinese brand Coolpad (also known as Yulong Coolpad) entered the top 10 rankings for the first time surpassing HTC, BlackBerry and Motorola due to rising demand for its 3G/4G handsets in China, parts of Asia and expansion in US market.

Samsung with robust demand for its Galaxy handsets led in most of the regions globally followed by Nokia meanwhile Blackberry became a top three player in Africa with reasonable demand for its handsets in Nigeria and Middle East. Meanwhile LG also registered impressive performance and growth moving up in the rankings globally and in multiple regions.

Latest report from our Wireless Device Strategies (WDS) service details quarterly handset shipments and marketshare for the world's top 30 vendors in North America, Central & Latin America, Western Europe, Central & Eastern Europe, Africa Middle East and Asia Pacific. Historical data by quarter from Q1 2004 to Q1 2013 are also included.

VENDOR SHARE: Global Handset Market by Region: Q1 2013

According to our Wireless Device Strategies (WDS) service, NFC phones are reaching a tipping point this year and global volumes will more than double in 2013. Most new LTE handsets will launch with NFC in the future, led by key players such as Samsung, Blackberry, Android, Microsoft and Nokia. More analysis can be downloaded by clients here.

According to our Wireless Device Strategies (WDS) service, Motorola's worldwide mobile phone shipments fell -52% annually in Q1 2013. Since Google acquired Motorola in Q3 2011, this grandfather of the cellphone industry has failed to post either a quarterly profit or a single quarterly increase in shipments, something only a fundamental overhaul of its handset development strategy can reverse. We recommend Motorola turn to the Nexus sub-brand to inject some magic back into its portfolio. More analysis can be downloaded by clients here.

According to our Wireless Device Strategies (WDS) service, LG's worldwide mobile phone shipments, revenues, profits and pricing all rose faster than the industry averages during the first quarter of 2013. Due to an improved 4G handset portfolio, LG is on the comeback trail. Operators and consumers are re-warming to LG. However, there are challenges. The US and China -- the world’s two most important markets -- remain major problem-children for the South Korean vendor. More analysis can be downloaded by clients here.

Boston, MA - April 25, 2013 – According to the latest research from Strategy Analytics, global mobile phone shipments dipped minus 1 percent annually to reach 373 million units in Q1 2013. Samsung was the star performer, capturing a record 29 percent share of all mobile phones shipped worldwide.

Neil Shah, Senior Analyst at Strategy Analytics, said, “Ongoing macroeconomic challenges in Asia, Europe and North America, relatively tighter operator upgrade policies for 3G phones, and slowing volumes of 2G feature phones were among the key reasons why global mobile phone shipments dipped minus 1 percent annually to reach 372.7 million units in Q1 2013. Fuelled by robust demand for its popular Galaxy portfolio, Samsung was the star performer, shipping 106.6 million mobile phones worldwide and capturing a record 29 percent marketshare to solidify its first-place lead.”

Neil Mawston, Executive Director at Strategy Analytics, added, “Nokia’s global mobile phone shipments fell 25 percent from 82.7 million units in Q1 2012 to 61.9 million in Q1 2013. Weak Symbian smartphone volumes and lackluster feature phone demand caused Nokia’s shrinkage. Nonetheless, Nokia remains the world’s second largest mobile phone vendor by volume, and if it can expand aggressively its fast-growing Lumia and Asha ranges this year, then there is still potential for Nokia’s position to stabilize or recover.”

Woody Oh, Senior Analyst at Strategy Analytics, added, “Apple grew just 7 percent annually and shipped 37.4 million iPhones worldwide in Q1 2013. Apple’s global mobile phone marketshare is approaching a peak. Apple will need to launch new models, or partner with additional major carriers like China Mobile, if it wants to expand significantly beyond its current ceiling of 10 percent global volume share.”

Other findings from the research include:

• LG held fourth position with 4 percent share of the global mobile phone market. LG has been ramping up its LTE 4G shipments, with popular models from the Optimus range, and this helped LG to grow at an above-average rate of 18 percent annually in the quarter;
• ZTE delivered 4 percent share of the global mobile phone market in Q1 2013, its lowest level for almost three years. ZTE is experiencing heightened competition in core markets like China and Western Europe from rivals such as Coolpad and Samsung.  

Exhibit 1: Global Mobile Phone Vendor Shipments and Market Share in Q1 2013  [1]

The full report, Global Handset Shipments Reach 373 Million Units in Q1 2013, is published by the Strategy Analytics Wireless Device Strategies (WDS) service, details of which can be found here: http://tinyurl.com/cr7fhmb.  

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:

Neil Shah / +1 617 614 0727 / NShah@strategyanalytics.com             

Europe Contact

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

Asia Contact:

Woody Oh / +44 1908 423 665 / WOh@strategyanalytics.com

According to our Wireless Smartphone Strategies (WSS) service, Ubuntu is preparing to enter the global smartphone market with its own platform, called "Ubuntu for Phone", during the next year. Ubuntu demonstrated its beta version of the operating system during CES and MWC 2013 and is aiming to produce an Ubuntu-powered smartphone some time in late-2013 or early-2014. What opportunities and challenges will the Ubuntu phone have when it finally hits the market? What volume can Ubuntu expect to ship worldwide? Which device makers will support this new platform, and will it pose a significant threat to the two influential platform giants: Android and Apple iOS? The full report is published and available to clients here.

Our Wireless Device Strategies (WDS) team has been pleased to attend Huawei's 10th Global Analyst Summit in China between Tuesday 23rd to Thursday 25th April, 2013.

Huawei has been outlining over three days its worldwide strategy for mobile devices, services, enterprises and networks in 2013.

Our summarized findings from Day One (Tuesday) and Day Two (Wednesday) can be viewed here and here.

These are three of our top findings from Day Three (Wednesday), the final instalment:

1. Huawei remains the world's number one vendor of dongles. This gives it a good relationship with global carriers and enables cross-selling of phones and tablets.

2. Huawei's smartphone unit is market-ready to support TD-LTE technology when it launches in China in H2 2013 or H1 2014;

3. Huawei is focusing mostly on Android and Microsoft platforms for smartphones / tablets this year. Other emerging operating systems are a wait-and-see option.

Overall, the Huawei Summit has been very interesting. Huawei is not yet a "Samsung killer" or "Apple killer" in the cellphone world, but it is clear they are in its sights.

See you next year.