Highlights from the Gartner Report
1. The worldwide sales of tablets to end users reached 195.4 million units in 2013, a 68 percent increase on 2012
2. This is fuelled by an improved quality of smaller low-cost tablets from branded vendors and white-box products continued to grow in emerging markets
3. The emerging markets recorded growth of 145 percent in 2013, while mature markets grew 31 percent.
4. Around 121 million Android tablets were sold worldwide in 2013, up from 53 million in 2012.
5. Android surpasses Apple iOS in tablet market. Android now holds 62 percent marketshare.
6. Despite Microsoft now acting more rapidly to evolve Windows 8.1, its ecosystem still failed to capture major consumers’ interest on tablets.
7. To compete, Microsoft needs to create compelling ecosystem proposition for consumers and developers across all mobile devices, as tablets and smartphones become key devices for delivering applications and services to users beyond the PC
Gartner forecasts that Android is poised to surpass 1.1 billion users across all devices in 2014 even as Worldwide combined shipments of devices (PCs, tablets, ultramobiles and mobile phones) are projected to reach 2.5 billion units in 2014. This represents a 7.6% increase in volumes for connected devices from 2013. In terms of Android, the figures represent a 26% increase in volumes compared to 2013. 75% of the Android activations will happen in emerging markets – which by extension means that the Android story is not slowing down any time soon.
1. Smartphones will be the key to the new connected devices paradigm contributing 75% of the total volumes in connected devices. Smart phones will continue to grow but at a slower pace, with opportunities moving away from the top-end premium devices to mid-end basic products
2. PC’s will drop in volumes by 8% per year and will loose almost a fourth on volumes. The evolution to ultra slim and light form factors would be key to the existence of the laptop category – since laptop users find tablets to have limited usability
3. Tablets will be one of the highest growth categories over the next 3 years though tablets will gravitate to the 5”/6” phablet form factor with usage which is more akin to smartphones.
4. However, the interesting category to watch out for are Ultra Mobiles – essential form factors such as hybrids, clamshells, watches, consoles or Google Glass which has a significant growth potential through the next 3 years horizon.
On the popularity of Android as a platform, there is a volume versus value equation, with Android users also purchasing lower-cost devices compared to Apple users. Android holds the largest number of installed-base devices, with 1.9 billion in use in 2014, compared with 682 million iOS/Mac OS installed-base devices. In terms of OSs, Gartner predicts Windows to have the toughest fight from iOS in CY 2014, post which Windows would gain on iOS basis its growing presence in the smartphone segment.
1. 1 billion smartphones per year! Latest smartphone numbers from Gartner round Smartphones at 250M a quarter. As low end smartphones penetrate the feature phone price points, Smartphones are beginning to look past the 1 billion mark.
2. With 82% market share Android is unrivalled emperor of the smartphone kingdom feebly contested by Apple iOS. Google’s conquest of the internet space at least on mobiles is near complete even while problem around gray Androids and Platform fragmentation remain.
3. Samsung remains the No.1 in smartphone device space – the fabled fifth horseman of the technology space – but this is more due to the momentum effect than anything really outstanding.
4. As the china smartphone markets swell, there will be more of Lenovos, Huaweis, ZTEs, Alcatels and Coolpads who would enter in the top 10 and start eating into Samsung’s 32%.
5. By the same logic – with the growing Indian smartphone volumes, i am hopeful of Micromax breaking into top 10 in a quarter or two – if it hasn’t already.
5. Android, Microsoft and Apple – are the last men standing as Blackberry, Bada, Symbian and all others fade out from the three horse OS race
6. Would Nokia break back into top 5 with its Lumia range? We would watch this.
Android and Samsung gain, Apple and the iOS stumble, Microsoft gains and Blackberry looses – The story doesnot change in the Global Smartphone and Feature Phone markets. Gartner seonds the numbers provided by IDC – showcasing the nearly irrevocable rise and rise of Android at the expense of everyone else.
Apple seems to be caught between a rock and a hard place: go for market share with cheaper iPhone then risk losing premium status; stay premium then risk losing relevance. Apple’s performance outside the US market seems to be weakening. Samsung on the other hand appears to have succeeded in straddling the smartphone landscape.
Nokia’s smartphone numbers indicate it as the come back kid. In its Q2, 2013 report, Nokia reported a rise in Lumia shipments, to 7.4 million, and a drop in feature phone shipments, to 53.7 million. However a neagtive movement on the ASPs pegged it down. Currently, the 30% increment of sales in Lumia’s didnot offset the southward movement of ASPs. Nokia’s smartphone balance and its profitability has still not found a balance.
The Chinese foursome of Huawei, ZTE, Yulong and Lenovo are beginning to dominate the positions 4 to 7 in the smartphone and mobile phone charts indicating the growing strength in China and other Asian smartphone markets.
As smartphones massify and the markets move towards the lower end ASP points, it would be interesting to note how Samsung, Apple and Nokia play out and how the Chinese vendors pick pace. It will be critical for the smartphone makers to step up in the mid-tier and also be more aggressive in emerging markets. Innovation, after all cannot be limited to the high end.
Gartner’s Q1, 2013 mobile phone and smartphone shipment numbers provide the same set of observations
1. The total mobile phone shipment numbers have been stagnant YoY (425.8 million Q1, 2013 versus 422 million Q1, 2012) …
2. …. Bogged by 22% decline in feature phone shipments (215.7 million Q1, 2013 versus 275 million Q1, 2012)…
3. …. And Buoyed by 43% increase in the smartphone shipments (210 million Q1, 2013 versus 147 million Q1, 2012)!
4. Smartphone sales accounted for 49.3 percent of sales of mobile phones worldwide in the first quarter, up 34.8 percent year-on-year.
5. Only the Asia/Pacific region contributed to mobile phone sales across the globe, with a 6.4 percent increase year-on-year. More than 226 million mobile phones were sold to end users in Asia/Pacific in the first quarter of 2013, which helped the region increase its share of global mobile phones to 53.1 percent year-on-year. China saw its mobile phone sales increase 7.5 percent in the first quarter of 2013, and its sales represented 25.7 percent of global mobile phone sales, up nearly 2 percentage points year-on-year.
6. Samsung rules the smartphone roost growing by 51% YoY. In Fact, Samsung presence in Smartphone segment is so overwhelming that its sales and market shares are almost equivalent of its next 4 competitors put together (Apple, LG, Huawei, ZTE)
7. Apple, is estimated to have secured 18.2 percent of global marketshare, a drop of 4.3 percentage points. Apple’s redemption has been the Chinese market with the lower price of the iPhone 4 making China a key revenue generator for the tech giant. However, with no new products due from the Apple stable until the fall, the next quarter may drag Apple’s market shares significantly downward.
8. In terms of operating systems, Android continues to race ahead of rival systems, claiming 74.4 percent of global marketshare. 156.1 million smartphones running Google’s operating system were sold in the first quarter, whereas Apple’s iOS claimed an 18.2 percent slice of the market with iPhone sales. With new OSs coming to market such as Windows,Tizen, Firefox and Mozila, one can expect some market share to be eroded, but not enough to question Android’s volume leadership.
Long time back, i had written a blog on the subject of smartphones becoming the key handheld at the cost of feature phones. If the Gartner 2012 numbers are to be considered, the saturation point for feature phones has been reached and the 2012 feature phones numbers – have been on a 1.66% decline as against 2011.
Incidentally, i see another trend – that of smaller players/ white-labelled OEMs- and a fragmented market emerging – a far cry from the Nokia and Samsung dominance days. The rise of Android is but actually a testimony to this trend with the exception of Samsung. With no malevolence to Samsung – it does seem to me that Samsung is holding on to a untenable position in shares in mobile devices with the white labeled OEMs on the prowl.
While Apple will still hold on to the smartphone ground (because of its ability to leverage hardware, software , services and experience), Samsung doesnot hold that ace with Android. This inspite of the fact that Samsung Galaxy series was the first high end Android that has challenged and now dethroned technology leadership of the iPhone.
The end result looks like an Android dominated market, though there could be a case of Android fatigue setting in with the audiences. However with the low end $50 smartphones on Android’s the numbers for Android will continue to add up especially in APAC and African markets. Thus Android is expected to still rule the volumes game on smartphones. It would be interesting to see how Windows and Blackberry go after Android – but the key still remains that – Android is the undisputed choice in smartphones in the fastest growing markets across the world. Windows and Blackberry will take time reversing this trend.
- Worldwide sales of mobile phones to end users reached almost 428 million units in the third quarter of 2012, a 3.1 percent decline from the third quarter of 2011.
- However compatred to Q2, 2012, the market has grown by 2.3% propelled by the growth of smartphones which added 15.6 million units to its Q2, 2012 number
- Smartphone sales accounted for 39.6 percent of total mobile phone sales, as smartphone sales increased 46.9 percent from the third quarter of 2011.
- Smartphones continued to fuel sales of mobile phones worldwide with sales rising to 169.2 million units in the third quarter of 2012.
- The smartphone market was dominated by Apple and Samsung. Both vendors together controlled 46.5 percent of smartphone market leaving a handful of vendors fighting over a distant third spot.
- In the smartphone market, Android continued to increase its market share, up 19.9 percentage points in the third quarter of 2012.
- Although RIM lost market share, it climbed to the No. 3 position as Symbian is nearing the end of its lifecycle. Channel destocking in preparation of new device launches for RIM, resulted into (lower than usual) 8.9 million sales to end users in the third quarter of 2012.
- With the launch of iPhone 5, Gartner analysts expect iOS share will grow strongly in the fourth quarter of 2012 because users held on to their replacements in many markets ahead of the iPhone 5 wider roll out. Windows Phone’s share weakened quarter-on-quarter as the Windows Phone 8 launch dampened demand of Windows Phone 7 devices.
All figures as per gartner.com
India PC market registers 17% growth in Q2, 2012 over Q2, 2011. The combined desk-based and mobile PC market in India totalled nearly 2.9 million units in the second quarter of 2012. Consumer buying accounted for 50 percent of total PC sales in the second quarter of 2012. Consumer PC sales grew 24 percent sequentially, which emphasizes the fact that media tablets are not yet cannibalizing the PC market in India like in the West. Consumer growth is being primarily being driven by entry level products. Computer makers such as HP, Lenovo, Asus and Samsung registered more than 50 percent growth in the consumer segment. Ultrabooks are still finding it difficult to penetrate the market. However, with the availability of the new Intel processor and declining price points, adoption of Ultrabooks would increase in coming quarters.
Laptops, which grew 54 percent compared to the second quarter of 2011, helped drive overall market growth. White boxes (including parallel import), which accounted for 45 percent of the overall desktop market, declined 18 percent in the second quarter of 2012 in comparison to the second quarter of 2011. The launch of Windows8 will impact the category in terms of certain vendors who will GTM the Windows8 first.
Lenovo has swung from a No.4 position in 2011 to No.1 position in 2012 basis a large TamilNadu govt order for the ELCOT project. On the other hand, Dell’s market share reduced by more than a fifth to 12.9% as compared to 16.7% in Q2 2011.
With Diwali coming up in November, the PC market is expected to continue showing momentum in the near future. Gartner believes that gifting during festivals along with subsequent shipments for the ELCOT deal will lead to further growth in the market. The study also reports a 25% growth in consumer purchases, which amounted to 50% of total PC shipments in Q2 2012.
From a long term perspective, it is unclear how the PC market will shape up when the average Indian turns to tablet as the primary computing device. While tablets have been eating into PC shipments – that hasn’t happened yet in India. The iPad posses less of a threat to PCs in the Indian market at least for now, because of its hefty price tag.
Worldwide sales of mobile phones to end users reached 419 million units in the second quarter of 2012, a 2.3 percent decline from the second quarter of 2011, according to Gartner. Demand of feature phones continued to decline, significantly weakening the overall mobile phone market
Demand slowed further in the second quarter of 2012. The challenging economic environment and users postponing upgrades to take advantage of high-profile device launches and promotions available later in the year slowed demand across markets.
Smartphone sales accounted for 36.7 percent of total mobile phone sales and grew 42.7 percent in the second quarter of 2012.
Samsung and Apple continued to dominate the smartphone market, together taking about half the market share, and widening the gap to other manufacturers. No other smartphone vendors had share close to 10 percent.
In the race to be top smartphone manufacturer in 2012, Samsung has consistently increased its lead over Apple, and its open OS market share increased to one-and-a-half times that of Apple in the second quarter of 2012.
In the smartphone OS market, Android extended its lead with an increase of 20.7 percentage points in market share in the second quarter of 2012. While Apple’s iOS market share slightly grew year over year (0.6 percent), it declined 3.7 percentage points quarter on quarter, as users postponed their upgrade decisions in most markets ahead of the upcoming launch of the iPhone 5.
Despite challenging economic conditions, the increasing globalization of the Indian economy is leading to a growing need for modern software with the latest features and improved functionality – none so more as with Enterprise in India. With Indian enterprises continuing to embrace IT to improve productivity and drive growth, penetration of ICT infrastructure has been growing rapidly during the past decade. The primary drivers of growth have been domestic demand, the growing maturity of users and incremental enhancements in the technology. A combination of high domestic demand, presence of global vendors and entry of new small vendors with innovative products have made the overall ecosystem apt for robust growth.
Gartner expects the enterprise software market in India to grow at 13% in 2012, and revenue will cross $$3.22 billion in 2012. India’s enterprise software market is forecast to maintain its strong performance, with an estimated compound annual growth rate (CAGR) of 13.6 per cent from 2009 to 2016 – the third highest growth rate in the world.
In 2012, India will be the fourth largest enterprise software market in Asia/Pacific. The country is forecast to account for 11 per cent of the region’s total revenue of $29.33 billion USD for Asia/Pacific this year, the equivalent to 1.15 per cent of the total worldwide software of market share of $280 billion USD billion.By 2016, India’s share of the software market in Asia/Pacific is expected to reach 12.1 per cent, representing $5.4 billion in revenue, or 1.5 per cent of total worldwide software market revenue of $361 billion. In comparison to other countries in the Asia/Pacific region, such as China (with 27 per cent share of regional spending in 2011), the software market in India is still relatively small and evolving.
End users in Asia/Pacific are expecting to increase their spending on application and infrastructure software, with China and India being the most optimistic and leading the way for budget increases, followed closely by Malaysia and South Korea. The high intention to increase budgets in India is expected because of the rapidly growing economy, globalization of operations, and ongoing investment in India as a customer service-related outsourcing destination. Optimism regarding spending within Indian organizations reflects confidence in India’s regional economic performance, as well as the need to adopt better technology to effectively compete in a tougher global environment.