Gartner: Q2,2010 Mobile Phone and Smartphone market shares
Worldwide mobile device sales to end users totaled 325.6 million units in the second quarter of 2010, a 13.8 percent increase from the same period in 2009, according to Gartner, Inc. Smartphone sales to end users accounted for 19 percent of worldwide mobile device sales, an increase of 50.5 percent from the second quarter of 2009.The double-digit growth this quarter, were offset by lower average selling prices (ASPs). ASPs were lower than expected and margins fell.Intense competition that drove price adjustments and changes to the product mix.Manufacturers such as LG and Samsung pursued market share in a low-margin market but this approach proved risky, as shown by LG’s decline of 27.8 percent in ASP in the second quarter of 2010.
New product introductions from Apple, HTC and Motorola, along with the drop in ASPs, drove strong sales of smartphones, shortages of components, such as active matrix organic LED (AMOLED) displays impaired sales volumes of some of the more popular new smartphones.HTC made its debut in the top 10 worldwide ranking, holding the No. 8 position with 139.1 percent growth year-on-year. This reflects the popularity of its Android portfolio but also a more aggressive branding strategy compared to the same period in 2009.The sudden growth in media tablets, such as the Apple iPad, did not appear to hold back smartphone sales. This lends credibility to the thought that most tablet users still feel the need for a truly pocketable, yet highly capable, device for those situations when it’s inconvenient to carry a device with a larger form factor
A few quick notes on the players in the market:
1. Nokia loss of 2.6 percentage points reiterate the need to do more to attract developers and other ecosystem members by revising its platform strategy and improving its communications
2.Although Samsung’s sales were strong in developing markets, its shift in product mix caused an overall decline in ASP. Its aggressive strategy toward the mass market enabled it to reduce inventory in the second quarter of 2010.Samsung will also be one of the first manufacturers to bring Windows Phone 7 devices to market, in time for the fourth quarter of 2010, showing that this manufacturer continues to keep its platform options open, even as it works on its own bada platform.
3.Blackberry has stood its ground in face of increasing pressure from the Androids. Blackberry released the Torch and Blackberry OS 6.0 to remain competitive. Torch’s form factor will still appeal more to business users than to consumers and will stop many loyal BlackBerry users defecting to other platforms, but it won’t attract many new users to the brand.
4.Apple’s sales would have been higher if it had not had to face tight inventory management in preparation for the arrival of the iPhone 4 at the end of the second quarter of 2010. Apple also suffered from some supply constraint on the new device.
5.In the smartphone operating system (OS) market, Android expanded rapidly in the second quarter of 2010, overtaking Apple’s iPhone OS to become the third-most-popular OS in the world (see Table 2). In the U.S, it also overtook RIM’s OS to become the No. 1 smartphone OS in this region. A non-exclusive strategy that produces products selling across many communication service providers (CSPs), and the backing of so many device manufacturers, which are bringing more attractive devices to market at several different price points, were among the factors that yielded its growth this quarter
6.Telcos will increasingly offer more affordable tiered data plans to users. Tiered data plans will make smartphones more accessible to different market segments and help make smartphones the dominant device category in mature markets. This means that total cost of ownership will be lower, and new users will face less of a barrier to entry
7.Launches of updated operating systems will help maintain strong growth in smartphones in the second half of 2010 and spur innovation. However, market share in the OS space will consolidate around a few key OS providers that have the most support from CSPs and developers, and strong brand awareness with consumers and enterprise customers