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Q1,2011 Mobile Phone market shares: IDC

Posted in Industry updates by Manas Ganguly on April 30, 2011

The worldwide mobile phone market grew 19.8% year over year in the first quarter of 2011 (1Q11) fueled by high smartphone growth, especially in emerging markets, and gains made by market challengers.Smartphone growth worldwide, particularly in Asia/Pacific (excluding Japan), Middle East and Africa (MEA), and Latin America, helped lift the overall market to a new first-quarter high. Increasingly, mobile phone makers and carriers are making smartphones affordable to a wider variety of people, which has helped drive the market to new heights. Smartphone-specific vendors, such as HTC, continue to grow sales at a steady clip as a result of this trend.

Feature phones have represented the majority of mobile phone shipments, but still are under tremendous pressure from smartphones. Even popular quick-messaging devices (phones with a QWERTY keyboard), once a bright spot within the feature phone market, appear to be losing steam as smartphones gain popularity. Still, IDC does not expect feature phones to disappear quickly as there is still strong demand across the globe.

Increasingly smartphones will drive market growth. This means feature phone makers will either need to become smartphone dependent or consolidate that part of the market.

Globally, mobile phone and smartphone shipments from Greater China powered strong mobile growth in Asia Pacific. This was inspite a muted quarter from Japan under the Tsunami wake.

iPhone and Android powered Smartphone sales in Europe and Africa. Mid-end Androids along with Nokia and Blackberries have also grown mobile markets across.

Android and iPhone were the drivers of smartphone growth in North America even as feature phone growth has been tapering down sharply.

The Latin America market growth continued last quarter as the gap between smartphones and feature phones narrowed. Smartphone shipments were aided by carriers, who are moving customers to 3G networks while vendors shipped more touchscreen and QWERTY models. New Android and Windows Phone devices were launched too, which helped drive smartphone growth. The average selling prices also declined in the region, thanks to aggressive expansion by Chinese vendors.

Gartner: Q2,2010 Mobile Phone and Smartphone market shares

Posted in Industry updates by Manas Ganguly on August 14, 2010

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

Smartphone Market Share Update 2Q, 2010: Strategy Analytics

Posted in Mobile Devices and Company Updates by Manas Ganguly on July 23, 2010

A market share update from Strategy Analytics

2Q 2010 saw 60 million smartphones being shipped globally, a 43% jump versus 2Q 2009. Overall, smartphones accounted for 19 percent of all handsets shipped during 2Q,2010. Strategy Analytics reasons that the 43% Growth was driven by robust subsidies from carriers, strong competition between high-end vendors, and a rising selection of lower-cost phones running systems like Android and Symbian

On the flip side, the dizzying array of smartphones and the increasingly competitive market could pose a challenge to manufacturers trying to ramp up profits. The global smartphone industry is growing volume, but the industry’s value is beginning to feel the effects of intensifying competition. Dozens of vendors from the telecoms, PC and consumer electronics industries are piling into the market and driving down prices. Even established brands such as Nokia, RIM, and Apple are finding it increasingly hard to raise prices and profits in the face of such fierce competition.

Among the three major smartphone players, Nokia’s market share dipped slightly to 40.3 percent compared with 40.7 percent in 2009’s second quarter. Second-place Research in Motion saw its slice of the market fall to 18.8 percent from 19.3 percent a year-ago. And third-place Apple watched its share grow to 14.1 percent from 12.5 percent in last year’s quarter.

Even while Nokia reported a 40% drop in profits in the 2nd Quarter 2010, it was able to grow its smartphone shares from 38.8% (Exit 2009) to 40.3%. Going forward a lot of Nokia’s smartphone fortunes would depend upon the N8 and Symbian 3 Operating systems. While there have rumours of CEO Olli Pekka’s exit after a sub-optimal performance, the biggest concern for Nokia is its ASP.The average selling price for Nokia smartphones declined to €143 from €181 a year ago. Currently the 43% increase in volume has offset the 21% decrease in ASP. However going forward competition from low end Androids may result in further ASP drops unless Symbian 3 is able to reverse the perception of inability of Symbian to support Smart features.

RIM may be the top gun in the North American smartphone markets, but it is also under pressure from the Android armies of HTC, Motorola and Samsung. RIM’s inability to produce a great touch experience can also be a handicap going forward. A lot depends on Blackberry OS 6.0 due launch soon. Analysts and Tech Geeks are also awaiting the rumored Blackberry Tablet. There would be lot of learnings on the Tablet front that could be taken to Blackberry’s touch portfolio.

While Apple continues to beat the smartphone growth, there are some signs of the Apple sales slowing down and this is chiefly attributed to the following factors: Users were more likely to put off purchases of the iPhone in 2Q 2010 because of the anticipation of iPhone 4G. Secondly, Apple may be reaching the upper limits of the number of customers it can grab through its current carriers, especially in major iPhone markets such as the U.S., China, and Japan. To expand market share much further, Apple will need to reach out beyond its current lineup of carriers. Higher growth for Apple is expected to happen from Multiple carrier tie-ups across large markets such as US, China and Japan. The backlash of the Foxconn worker suicides and the Antennagate issue is expected to have blunted Apple’s mind share amongst it followers.

Gartner: Q1,2010 Mobile Phone and Smartphone market shares

Posted in Industry updates by Manas Ganguly on May 22, 2010

The Gartner Global mobile phone market share data for Q1, 2010 was released a day back and according to Gartner, Global mobile phone sales to end users totalled 314.7 million units in the first quarter of 2010, a 17 per cent increase from the same period in 2009. Smarpthone sales to end users reached 54.3 million units, an increase of 48.7 per cent from the first quarter of 2009. Among the most successful vendors were those that controlled an integrated set of operating system (OS), hardware and services. (Read that as Apple who have registered a 112% growth YOY)

Q1’10 saw RIM, a pure smartphone player, make its debut in the top five mobile devices manufacturers, and saw Apple increase its market share by 1.2 percentage points. Android’s momentum continued into the first quarter of 2010, particularly in North America, where sales of Android-based phones increased 707 per cent year-on-year.

Growth in the mobile devices market was driven by double-digit growth of smartphone sales in mature markets, helped by wider product availability as well as mass market price tags. Increasing sales of white-box products in some emerging regions, in particular India, also drove sales of mobile phones upward. We expect sales of white-box products to remain very healthy for the remainder of 2010, especially outside of China.

The rise of white-box manufacturers from Asia has also helped the “others” section, as a proportion of overall sales, increase its market share to 19.20 per cent in the first quarter of 2010, up 2.7 percentage points. This is having a profound effect on the top five mobile handset manufacturers’ combined share that dropped from 73.3 in the first quarter of 2009 to 70.7 per cent in the first quarter of 2010.

In the smartphone OS market, Android and Apple were the winners in the first quarter of 2010.Android moved to the No. 4 position displacing Microsoft Windows Mobile for the first time. Both Android and Apple were the only two OSs vendors among the top five to increase market share year-on-year. Symbian remained in the No. 1 position but continued to lose as Nokia remains weak in the high-end portfolio.As seen with the iPad and web books based on Google’s Android platform, mobile OS ecosystems are developing and will move beyond smartphones to continue to deliver consumer value and a rich user experience.

Mobile e-mail, rich messaging and social networking will continue to drive demand for smartphones and enhanced phones that feature full qwerty hardware keyboards.To compete in such a crowded market, manufacturers need to tightly integrate hardware, user interface, and cloud and social networking services if their solutions are to appeal to users. Just adding a qwerty keyboard will not make a device fit the communication’s habits of today’s various consumer segments.

http://www.gartner.com/it/page.jsp?id=1372013

Q1, 2010: Smartphone Market shares

Posted in Industry updates by Manas Ganguly on May 8, 2010

Presenting the IDC Smartphone report for 1Q 2010.

Growth of the worldwide converged mobile device market (commonly referred to as smartphones) more than doubled that of the overall mobile phone market in the first quarter, a sign the segment is in high-growth mode again. Device manufacturers shipped a total of 54.7 million units in the first quarter of 2010 (1Q10), up 56.7% from the same quarter a year ago. In contrast, the overall mobile phone market grew 21.7%. Converged mobile devices accounted for 18.8% of all mobile phones shipped in 1Q10, up slightly from 14.4% in 1Q09. The smartphone market’s growth is impressive too when contrasted to the 38% growth in the fourth quarter 2009, which is typically the strongest quarter of the year.

Consumers are gravitating to smartphones not just because the devices themselves look ‘cool’ and ‘slick’, but because the overall experience aligns with their individual tastes and demands. Users are seeking – and finding – experiences that are intuitive, seamless, and fun.

IDC expects higher smartphone sales this year will be a result of greater awareness, increasingly affordable data plans, and the global economic recovery. More and more consumers are aware of smartphones now due to positive referrals from friends and family and manufacturer’s mass media campaigns. Coupled with increased confidence on the part of consumers, these factors will create a perfect storm of demand for suppliers this year.
• It is heartening to see Motorola storm it back in reckoning riding the success of Droid, Cliq, Moto expects to launch 20 different models and ship 12–14 million Android smartphones this year.
• Nokia holds on to its market share basis some good performances by the E71,E72 and the entry level smartphone line up (5800 Express-music) which has seen some measure of success globally.
• HTC seems to be clearly benefitting from its Android tie ups and HTC better than market performance sets the tone for a losing proposition for WinMo and the rise of Android OS.
• Apple’s juggernaut is clearly unstoppable more than doubling it 1Q09 volumes.
• Blackberry devices increased 50% Y-on-Y, and going forward BlackBerry OS 6.0, which promises a smoother and more interactive user interface will be a big growth engine for RIM.

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Global 2009 and Q4,2009 Smartphone and Device Market Shares

Posted in Industry updates by Manas Ganguly on February 27, 2010

The Global meltdown took its toll, but the silver lining is the market picking up as the crisis slowly dissolves. So while the total phone sales fell by 1% YOY, Q4 registered a strong resurge of 9%. This a swing of 13.5% versus the cumulative Quarters Q1,Q2,Q3. Contribution of Q4 sales to Total year sales hit 28% versus 25% on a normal basis.

The mobile devices market finished on a very positive note, driven by growth in smartphones and low-end devices. Smartphone sales to end users continued their strong growth in the fourth quarter of 2009, totalling 53.8 million units, up 41.1 per cent from the same period in 2008. In 2009, smartphone sales reached 172.4 million units, a 23.8 per cent increase from 2008. In 2009, smartphone-focused vendors like Apple and Research In Motion (RIM) successfully captured market share from other larger device producers, controlling 14.4 and 19.9 per cent of the worldwide smartphone market, respectively.

2009, intense price competition put pressure on average selling prices (ASPs). The major handset producers had to respond more aggressively in markets such as China and India to compete with white-box producers, while in mature markets they competed hard with each other for market share. Gartner expects the better economic environment and the changing mix of sales to stabilise ASPs in 2010.

Three of the top five mobile phone vendors experienced a decline in sales in 2009. The top five vendors continued to lose market share to Apple and other vendors, with their combined share dropping from 79.7 in 2008 to 75.3 per cent in 2009.

Nokia’s annual mobile phone sales to end users reached 441 million units, a 2.2 per cent drop in market share from 2008. Although Nokia outperformed industry expectations in sales and revenue in the fourth quarter of 2009, its declining smartphone ASP showed that it continues to face challenges from other smartphone vendors and from the white-box manufacturers in the mid and low end. Nokia will face a tough first half of 2010 as improvement to Symbian and new products based on the Meego platform will not reach the market well before the second half of 2010. Its very strong mid-tier portfolio will help it hold market share, but its ongoing weakness at the high end of the portfolio will hurt its share of market value.

Samsung was the clear winner among the top five with market share growing by 3.2 percentage points from 2008. This achievement came as a result of improved channel relationships with distributors to extend its reach and better address the needs of individual markets as well as a rich mid-tier portfolio. For 2010, the company is putting a focus on Bada, its new operating system (OS) that aims at adding the value of an ecosystem to its successful hardware lineup.

Motorola sold slightly more than half of its 2008 sales and exhibited the sharpest drop in market share, accounting for 4.8 per cent market share in 2009. “Its refocus away from the low-end market limited the volume opportunity, but should help it drive margins going forward. Motorola’s hardest barrier is to grow brand awareness outside the North American market, where it benefits from a long-lasting relationship with key communications service providers (CSPs).

Symbian dropped 5.4 percentage points in 2009. Competitive pressure from its competitors, such as RIM and Apple, and the continued weakness of Nokia’s high-end device sales have negatively impacted Symbian’s share. Symbian had become uncompetitive in recent years, but its market share, particularly on Nokia devices, is still strong. If Symbian can use this momentum, it could return to positive growth.

The key in this report is the rise of Android (mostly Q4 numbers). Android increased its market share by 3.5 percentage points in 2009, while Apple’s share grew by 6.2 percentage points from 2008. Apple with just one product has managed to dislodge WinMo which has multiple vendors. WinMo desperately needs WinMo 7.0 to hold the freefall. Android’s success experienced in the fourth quarter of 2009 should continue into 2010 as more manufacturers launch Android products, but some CSPs and manufacturers have expressed growing concern about Google’s intentions in the mobile market. This is in view of the Google Nexus One and the concerns can cause manufacturers to change their product strategies or CSPs to change which devices they stock, this might hinder Android’s growth in 2010

Worldwide Q3,09 Smartphone and Devices Market Shares: Gartner

Posted in Industry updates by Manas Ganguly on November 13, 2009

Worldwide mobile phone sales appears to be tanking with a YOY (3Q 2009 versus 3Q 2008) increase in sales of .1%. This contrasts sharply against a 12.2% YOY (3Q 2009 versus 3Q 2008) increase in smart-phone sales. This is according to the 3Q Mobile phones report by Gartner. The 3Q,2009 was charecterised by channel slowed its inventory-reduction efforts leading to increase in sales volumes and stagnation of average selling prices (ASPs). Gartner further predicts an increase in sales in the 4Q holiday season. This however will not lead to any increase in the 2009 figures, which will end up stagnant vis a vis 2008.

However Gartner issued a fresh set of carte blanches for the industry:

  1. Android’s coming to mainstream would increase the complexity and competition in the smart-phone space.
  2. Hardware commoditisation and the growth in open platforms will make it harder for devices and platforms to stand out.
  3. Grey-market sales are no longer limited to China and all manufacturers will have to compete with gray-market players as they expand into emerging markets in Asia/Pacific, Eastern Europe, The Middle East and Latin America.
  4. A greater cause of concern is the fact that Grey-market devices are no longer just ultra-low cost models. Feature enhanced phones also feature as a part of the grey market devices.

3Q 2009 Gartner

Nokia appears to still be loosing ground to Samsung who have so far done extremely well with the mid range touch phones: Star and the Corby series. LG also had a decent run with its Cookie series. Going forward the release of Nokia 5230 and 5530 will be an interesting thing to watch out for, as these mid range Nokia devices may prove to be instrumental the market share fight. Research In Motion reached 20 per cent share, its highest yet.

RIM’s sales volumes rested on the Curve 8900 in Europe and the Tour and Storm 2 with Verizon Wireless in the US. RIM also focused on pre-paid sales and more flexible BlackBerry Internet Service offerings, which helped to drive volumes in emerging markets like Latin America.

Apple’s worldwide smartphone share reached 17 per cent as iPhone sales totalled 7 million units in the third quarter of 2009 following the continued rollout of the iPhone 3GS in new countries. Its ASP is holding steady and sales in the fourth quarter should be even stronger as Apple starts selling in China, through one additional carrier in the UK, and in an additional 16 countries.

In the Mobile operating systems space, Android seems to be picking up momentum basis new launches that feature the Android. Sales of Windows-based smartphones saw another decline with the Winmo 6.5 failing to enthuse the markets.

Gartner:The OS markets in future

Posted in Computing and Operating Systems, Mobile Devices and Company Updates by Manas Ganguly on October 8, 2009

Gartner has released a 3 year projection of  0perating system market shares. A few key takes from the study are as follows:

1. 4X growth expected in high end smartphone volumes. Clearly the numbers and growth in the category will be driven by the smartphone segment.

OS MS

2. Gartner predicts Android (which is currently 2% of the market) will grow to 14 percent of the global smartphone market in 2012 — beating Apple’s iPhone, Windows Mobile and RIM’s BlackBerry platforms.

3. Gartner has been very Android biased for long. The 5 reasons why Android will outrun most of its competitors provided by Gartner are as follows:

  • Google backs Android, a major pipeline for its cloud services.
  • Android is improving rapidly. The Cupcake 1.5 release was well-received, and Donut 1.6 has already been sent over the air to handset owners.
  • Android is open, making it easier to quickly gain developers’ support.
  • Android will run on phones from several manufacturers, which will help it quickly spread through the marketplace. HTC, Motorola and Samsung are already supporting handsets.
  • Android combines the best of what’s out there. It’s open, but it offers iPhone-like menus and apps, with Windows Mobile-esque icons, with Palm Pre-like multitasking. There’s another arms race afoot — the battle among Android handset makers as to which company can squeeze the most out of the OS.

4. The report indicates enough head room for all players to grow in the market which is quadrapuling in the next 3 years.

5. Interestingly, Gartner seems to indicate that Blackberry which is currently the best seller in US and North America will loose ground to the edgier iPhone and Android.

6. It also looks like Gartner has a lot of faith on Nokia and Symbian, which has been loosing ground lately to the others. 39% looks a tad high and i would epect Symbian to lead the market but by a more slender margin. I would give Symbian a market share close to 25%. This is in light of the fact that Nokia has not been able to keep pace with the iPhone/Android/Palm OS.

7. WinMo’s future hangs by WinMo 7.0 releasing next year 4Q. Microoft has to deliver on that else it would have to kiss smartphone OSs a bye for times to come.

8. Surprisingly, even if Linux and Open Source is the toast of Internet and Mobile developement, Gartner refuses to acknowledge the fact and accords a paltry 5.4% to Linux based systems. What with Moblin, Maemo and the coming of age of Intel in the smartphone space?

Whats your take on the situation? Leave your comments on how you see the smartphone OS wars shaping up!

Worldwide Q2, 09 SmartPhone and Devices Market Shares: Gartner

Posted in Industry updates by Manas Ganguly on August 14, 2009

Inventory Destocking Continues with 13.9 Million Units Shed by the Channel

Worldwide mobile phone sales totalled 286.1 million units in the second quarter of 2009, a 6.1 per cent decrease from the second quarter of 2008, according to Gartner, Inc. Smartphone sales surpassed 40 million units, a 27 per cent increase from the same period last year, representing the fastest-growing segment of the mobile-devices market (see Table 2).

Gartner Findings

  1. Despite the challenging market, some devices sold well as consumers who would usually have purchased standard midrange devices either cut back to less expensive handsets or moved up the range to get more features for their money
  2. Touch-screen and qwerty devices remained a major driver for replacement sales and benefited manufacturers with strong, touch-focused mid-tier devices.
  3. The decline in average selling price (ASP) accelerated in the first half of the year and particularly affected manufacturers that focus on mid-tier and low-end devices, where margins are already slim.”
  4. The recession continued to suppress replacement sales in both mature and emerging markets.
  5. The distribution channel has dealt with lower demand and financial pressure by using up 13.9 million units of existing stock before ordering more.
  6. The gap between sell-in to the channel and sell-through to customers will reduce in the second half of 2009 as the channel starts to restock.

Q2 2009 Market Shares

Nokia maintained its leadership position, but its portfolio remained heavily skewed toward low-end devices. Its flagship high-end N97 smartphone met little enthusiasm at its launch in the second quarter of 2009 and has sold just 500,000 units in the channel since it started to ship in June, compared to Apple’s iPhone 3G S, which sold 1 million units in its first weekend.

  • The right high-end product and an increased focus on services and content are vital for Nokia if it wants to both revamp its brand and please investors with a more promising outlook in ASPs and margins.

Samsung and LG both had a very strong second quarter of 2009 with sales of 55 million units and 30.5 million units, respectively. Samsung’s touchscreen devices, qwerty phones and smartphones drove sales in mature markets, and Gartner expects it will continue to gain market share in the second half of 2009 to close the gap with Nokia. Gartner expects LG to keep moving into lower-tier devices to drive growth in emerging markets and be well-positioned to take advantage of China’s 3G rollout as it can deliver good-value-for-money devices.

Motorola’s sales of 15.9 million units were slightly better than expected, but its presence has rapidly concentrated on the Americas, and it has lost most of its share of the Western European market, where it sold fewer than 1 million units in the second quarter of 2009. Most operators and customers will be waiting for Motorola’s new Android-based products planned for the fourth quarter of 2009.

Sony Ericsson’s market share dropped 2.8 percentage points year-on-year in the second quarter of 2009 but its volume dropped 41 per cent. Although the market environment was challenging, Gartner attributes Sony Ericsson’s poor performance to its uncompetitive range of handsets.Sony Ericsson has neglected to exploit key trends such as qwerty products for messaging and e-mail, internet browsing and navigation.

  • If SE wants to build the presence of its three new products announced this quarter in the channel and capture Christmas sales, the products need to come to market early in the fourth quarter of 2009,

Smartphone sales were strong during the second quarter of 2009, with sales of 40.9 million units in line with Gartner’s forecast of 27 per cent year-on-year sales growth for 2009

Given the higher margins, smartphones offer the biggest opportunity for manufacturers. It is the fastest-growing market segment and the most resistant to declining ASPs.

Apple’s expansion into a larger number of countries in the past year has produced a clear effect on sales volumes, as have the recent price adjustments on the 8GB 3G iPhone. Sales of 5.4 million units in the second quarter of 2009 indicated a 509 per cent growth in shipments and helped Apple maintain the No. 3 position in the smartphone market, where it has stayed since the third quarter of 2008. Apple brought its much-anticipated new device — the iPhone 3G S — to market at the end of the second quarter of 2009, but its full potential will only start to show in the sales figures in the second half of 2009.

At the high end of the smartphone market, HTC remained in the No. 4 position behind Apple, where it has been since the third quarter of 2008. It reported lower expectations for the second half of 2009 due to product delays and now expects 2009 revenue to decline by low- to mid-single digits year-on-year, far below its previous outlook of 10 per cent annual growth.

In the smartphone operating system (OS) market, Symbian held 51 per cent share, down from 57 per cent a year ago, while RIM and Apple grew their shares year-on-year. Android’s share was just under 2 per cent of the market and more Android-based devices will come to market in the fourth quarter of 2009, intensifying competition in the smartphone OS market, particularly for Symbian and Windows Mobile. Microsoft’s share continued to drop year-on-year to account for 9 per cent of the market in the second quarter of 2009.

  • Microsoft licensees HTC and Samsung continued to add features to their own interfaces, on top of Windows Mobile, to create more competitive products and make up for the usability constraints of the Microsoft platform.

This quarter also saw the debut of the long-awaited Palm Pre based on the new web operating system.

  • This device attracted a lot of media attention but showed mixed results at the cash register as sales only reached 205,000 units. Palm currently ranks tenth in the smartphone market and Gartner remains concerned about its ability to gain traction outside the US market, where its brand is less strong.

For the remainder of 2009, manufacturers must offer products with the features that consumers and operators are demanding most strongly — like touchscreens, focus on user interfaces and application/content ecosystems — and work hard to keep operators loyal.Competition is expected to intensify in the second half of 2009. Mobile operators are likely to drive competition among manufacturers as they start selling e-book readers and mini-notebooks from other manufacturers to foster mobile broadband subscriptions. Operators are also starting to subsidise e-book readers and mini notebooks on contract and this means that there will be less subsidy available to drive sales of mobile phones and smartphones. In turn, operators will demand lower prices from phone manufacturers, which will be under even more pressure to deliver strong feature sets at the lowest possible price.

 

 

 

Worldwide Mobile and Smart Phone Sales: Q1,2009 Industry Update

Posted in Industry updates, Mobile Devices and Company Updates by Manas Ganguly on June 17, 2009

Source: Gartner
Reference/ 2008 Market share archives:
http://technologyandtelecom.blogspot.com/2009/03/mobile-operating-systems-by-market.html
http://technologyandtelecom.blogspot.com/2009/03/smartphone-market-share-update.html
http://technologyandtelecom.blogspot.com/2009/01/how-nokia-blinked-in-america-classic.html
http://technologyandtelecom.blogspot.com/2009/03/smartphone-market-share-update.html

1.Worldwide mobile phone sales totalled 269.1 million units in the first quarter of 2009, a 8.6 per cent decrease from the first quarter of 2008.
2.Smartphone sales surpassed 36.4 million units, a 12.7 per cent increase from the same period last year
3.Overall sales in the first quarter of 2009 registered the biggest quarter-on-quarter contraction since 2001.
4.Since 2001, this was also the first time the market contracted year over year during the first quarter, a period traditionally helped by strong seasonality in the Asia/Pacific market. The channel intensified its efforts in the first quarter of 2009 to reduce the levels of stock it holds. Stock reduction is intended to minimize capital investment in response to low consumer confidence.
5.Sales into the channel were just short of 244 million units in the first quarter of 2009, while sales to users were just over 269 million units — a difference of 25 million units, compared with 17 million units in the fourth quarter of 2008, the biggest difference ever recorded
6.Channel inventory reductions will continue into the second quarter of 2009, albeit with lower volumes
7.Smartphone sales represented 13.5 per cent of all mobile device sales in the first quarter of 2009, compared with 11 per cent in the first quarter of 2008.
8.With inventory-reduction efforts expected to continue in the second quarter of 2009, although to a lesser extent than what we have seen so far, and better-than-expected figures for the first quarter of 2009, overall sales to users for 2009 will remain considerably higher than the sell-in that many vendors are expecting
9.Device vendors will focus increasingly on smartphones, improved user interfaces and services to differentiate themselves and fuel consumer demand.

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