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Canalys: Q1 2012 Tablet market snapshot

Posted in Industry updates by Manas Ganguly on May 3, 2012

Market analyst firm Canalys has reported that global pad shipments more than tripled year-on-year in Q1 2012. Vendors shipped 20.3 million pads, representing 19% of all client PC shipments in the quarter. A year ago pads accounted for just 7% of PC shipments.

Adoption rates, however, vary significantly across regions, shaped by differing economic conditions and the resultant influence on consumer spending, as well as the availability of popular content through local app stores. North America remained the largest region by shipment volume (almost half of the global total), with pads representing 36% of PCs shipped in the region. Asia Pacific was the second largest, rising 232% year-on-year to exceed 5 million units. But shipments in EMEA (Europe, Middle East and Africa) of 4.7 million in Q1, and year-on-year growth of only 180%, mean the region is lagging behind. China is now the second largest market for pads, with shipments in Q1 six times what they were a year earlier. Localization of content and app stores is particularly important for success in tablets, which most foreign competitors have yet to achieve.

Overall, 4 of the 10 largest markets for pads are in the Asia Pacific region. In addition to its growing economies, government-led school projects to give students pads to replace textbooks in India, and similar planned initiatives in South Korea and Thailand, will continue contributing to growth in the region.

Apple continues to dominate the tablet market, though the market share of Apple was 58% globally in Q1, down from 74% a year earlier. During Q1 it launched the new iPad and lowered the price of the iPad 2. This boosted shipments after a record Q4 and increased pressure on competitors who are fighting on price. It also makes them more accessible to the education sector. Apple’s performance in the Asia Pacific region is of particular note, with shipments growing 252% even though the new iPad shipped earlier in North America and Europe.

Amazon remained in second place with 10% share, although all its shipments were in North America. Amazon’s rise in the pad space is testament to the need for a compelling content proposition. Samsung was the third biggest pad vendor in the quarter, but given the size of its portfolio, it has been underperforming. While Samsung has been aggressively trying to position its pads in the same price bracket as Apple, but its lack of content means the products are often overlooked by consumers.

The learnings from the Amazon success story and the also-ran Samsung story is that tablet makers cannot succeed by focusing on device specifications alone. The content, services and eco-system bit is every bit a tablet feature much beyond the feature specs.

Android accelerating on Smartphone space

Posted in Industry updates, Mobile Devices and Company Updates by Manas Ganguly on August 3, 2011

Canalys has stated the obvious in terms of smartphone platform market shares: Android rules and has captured 48% of the smartphone market in Q2 of 2011. Smartphone adoption continues to grow rapidly across the world, reaching a total of 107.7 million units shipped in Q2 of 2011, a 73% year-on-year growth.Android was the biggest driver of smartphone shipments in Q2, as Android-based smartphone shipments were up 379% year-over-year, coming in at 51.9 million total units shipped.Successful Android-based products from vendors such as Samsung, HTC, LG, Motorola, Sony Ericsson, ZTE and Huawei, as a catalyst for the platform’s growth. As written about earlier Apple has over-shot Apple and is the No.2 smartphone platform. Android’s growth has powered Samsung as the No.2 smartphone maker globally.

Android was the number one platform in 35 of the 56 countries Canalys tracks, resulting in a market share of 48 percent. Nokia’s leadership position has proved most resilient in key emerging markets, and it still leads in the BRIC countries: Brazil, Russia, India and China. The problem for Nokia is that demand for its Symbian-based smart phones has dissipated very rapidly, particularly in operator-led markets, such as Western Europe, where it’s been strong in the past. It badly needs the first of its Windows Phone devices to launch as soon as possible to arrest a decline and, hopefully, silence its critics.Even while Nokia-WP tie-up was announced in February, the first of these devices will be launched only towards end of 2011.Nokia is set to have several more difficult quarters before a possible reversal of fortunes.

RIM had a challenging quarter in North America, with its market share slipping to 12%, down from 33% a year ago. However, Blackberry continues to see significant interest and uptake of its devices, for example in Indonesia and South Africa where it is the leading smart phone vendor. Nonetheless, it must continue to innovative and recapture lost momentum. It’s critical that the next-generation BlackBerry OS 7-based products launch ahead of the upcoming holiday season to compete in the market.

Q1,2011 Smartphone market shares: Canalys

Posted in Applications and User Interfaces, Mobile Devices and Company Updates by Manas Ganguly on May 5, 2011

1. Smartphones globally have grown by 83% to 101m (In Q1,2011) from 55.2m (In Q1,2010). However the markets have been flat Q1, 2011 over Q4.2011 with sales at 101million.
2. As against an estimated 80-84 million PCs shipped in the quarter, Smartphones have over sold PCs second quarter in succession.
3. Android, Apple and Bada have grown in the flat market whereas Symbian, Blackberry, Windows phones and others have lost footing.

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4. APAC emerges as the largest market for smartphones accounting for 40% of smartphone shipments (inspite of Japan’s poor show due to the earthquake). APAC has doubled its smartphone shipments (37.3 million) with biggest smartphone growths registered in China, South Korea and India.
5. US remained the largest country for smartphone shipments. Apple has substantially extending its lead, achieving a share of 31% device market share and growth of over 150% year on year. Volumes were boosted significantly by shipments of the iPhone 4 with Verizon Wireless. Android remained the leading smart phone platform in the US for the third consecutive quarter, with a 49% share. Growing by well over 200%, HTC became the leading Android vendor in the US and the second-place smart phone vendor in the country overall.

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6. Android emerges as the No.1 OS second quarter in succession and the trend does not look like changing any time soon in the future. Canalys expects Android to grow twice as fast as others in 2011. Android has registered a 35% market share, up by 7.2% against Q4,2010. Overall, Android shipments were helped by strong sales by its vendors including HTC, Samsung, LG, Motorola and Sony Ericsson.
7. Nokia’s lost 15% share points and dropped from 39% smartphone share (with 21.5 mln volumes) in Q1,2010 to 24% in Q1,2011 (with 24mln volumes). Of these 9mln Nokia smartphones were sold alone in China and APAC region shipments contributed for 53% of Nokia global smartphone sales. Nokia sales fell 22% QOQ. Nokia has launched a few Symbian based smartphones which are expected to help Nokia’s smartphone numbers before it gives way into WP7 early next year. Nokia is under considerable strain in the smartphone market as it transitions strategy, platforms and people and that is showing through.
8. Apple with its double operator/ CDMA phone strategy grew 18% over Q4,2010.
9. Blackberry also shared the similar faith as Nokia with the wind being knocked out of its sails and registered a 4% QOQ drop. It returned a 14% market share in Q1, 2011 as against 19% in Q1,2011.
10. Samsung shipped nearly 3.5m phones running its Bada OS – which Canalys says outstripped total shipments of Microsoft’s Windows Phone OS, launched in the fourth quarter of 2010. This shows that there is still room for multiple operating systems, and that vendors can benefit from maintaining control of device development to hit the right markets and price points.

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