Ronnie05's Blog

Its a world of smart connected devices!

Posted in Mobile Devices and Company Updates by Manas Ganguly on December 11, 2012

As per the latest reports from IDC, Global market for Connected and Smart devices grew 27.1% YoY in Q3,2012 to 303.6 million units, valued at $140.4 billion. Shipments will continue to reach record levels in Q4 2012, rising 19.2 per cent from the 3Q, 2012 figure and 26.5 per cent above 3Q, 2011. IDC expects sales of 362 million units with a market value of $169.2 billion in the final quarter, with tablet sales up 55.8 per cent and smartphones up 39.5 per cent, while PCs are expected to show small declines. Samsung maintained the top position with a 21.8 per cent market share while Apple help 15.1 per cent based on unit shipments. But Apple led all vendors in value with $34.1 billion in quarterly sales and an average selling price of $744 across all device categories. The difference in the ASPs (average selling prices) Of Samsung and Apple, is a telling sign of different market approaches. The fact that Apple’s ASP is $310 higher than Samsung’s with just over 20 million fewer shipments in the quarter speaks volumes about the premium product line that Apple sells. Having said that, there is also a risk that Apple could get relegated to a minority market, just the way Windows95 out-marked Apple OS in the mid 90s.

Smart Connected Devices by product Category - IDC

In terms of shipments, Lenovo ranked third with seven percent of the market, followed by Hewlett-Packard (4.6 percent), and Sony (3.6 percent). IDC expects the worldwide smart connected device market will hit 2.1 billion units in 2016 with a market value of $796.7 billion worldwide. In 2011, PCs accounted for 39.1 per cent of this market but by 2016 it is expected to drop to 19.9 per cent. Smartphones will be the top product category with share growing from 53.1 percent in 2011 to 66.7 per cent in 2016 and tablets will grow from 7.7 per cent in 2011 to 13.4 per cent in 2016. The advent of cloud-based services is enabling people to seamlessly move from device to device, which encourages the purchase and usage of different devices for different situations.

Smart Connected Devices - IDC

The shift in demand from the more expensive PC category to more reasonably priced smartphones and tablets will drive the collective market ASP from $534 in 2011 to $378 in 2016. While, IDC hasn’t provided a breakdown by operating system, Android with its mass-market devices with prices trending towards $100 or less will continue to take a majority share in smart devices.

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