Worldwide Mobile Phone Sales Grew 3.6 Percent in Second Quarter of 2013. Microsoft Has Become the No. 3 Smartphone OS Overtaking BlackBerry.
Worldwide mobile phone sales to end users totaled 435 million units in the second quarter of 2013, an increase of 3.6 percent from the same period last year, according to Gartner, Inc. Worldwide smartphone sales to end users reached 225 million units, up 46.5 percent from the second quarter of 2012. Sales of feature phones to end users totaled 210 million units and declined 21 percent year-over-year.
Anshul Gupta, principal research analyst at Gartner, said.
“Smartphones accounted for 51.8 percent of mobile phone sales in the second quarter of 2013, resulting in smartphone sales surpassing feature phone sales for the first time.”
Asia/Pacific, Latin America and Eastern Europe exhibited the highest smartphone growth rates of 74.1 percent, 55.7 percent and 31.6 percent respectively, as smartphone sales grew in all regions.
Samsung maintained the No. 1 position in the global smartphone market, as its share of smartphone sales reached 31.7 percent, up from 29.7 percent in the second quarter of 2012 (see Table 1). Apple’s smartphone sales reached 32 million units in the second quarter of 2013, up 10.2 percent from a year ago.
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In the smartphone operating system (OS) market (see Table 2), Microsoft took over BlackBerry for the first time, taking the No. 3 spot with 3.3 percent market share in the second quarter of 2013. Mr. Gupta said.
“While Microsoft has managed to increase share and volume in the quarter, Microsoft should continue to focus on growing interest from app developers to help grow its appeal among users.”
Android continued to increase its lead, garnering 79 percent of the market in the second quarter.
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Mobile Phone Vendor Perspective
- Samsung: Samsung remained in the No. 1 position in the overall mobile phone market, with sales to end users growing 19 percent in the second quarter of 2013 (see Table 3). Mr. Gupta said. “We see demand in the premium smartphone market come mainly from the lower end of this segment in the $400-and-below ASP mark. It will be critical for Samsung to step up its game in the mid-tier and also be more aggressive in emerging markets. Innovation cannot be limited to the high end.”
- Nokia: Slowing demand of feature phone sales across many markets worldwide, and fierce competition in the smartphone segment, affected Nokia’s mobile phone sales in the second quarter of 2013. Nokia’s mobile phone sales totaled 61 million units, down from 83 million units a year ago. Nokia’s Lumia sales grew 112.7 percent in the second quarter of 2013 thanks to its expanded Lumia portfolio, which now include Lumia 520 and Lumia 720. Mr. Gupta said. “With the recent announcement of the Lumia 1020, Nokia has built a wide portfolio of devices at multiple price points, which should boost Lumia sales in the second half of 2013. However, Nokia is facing tough competition from Android devices, especially from regional and Chinese manufacturers which are more aggressive in terms of price points.”
- Apple: While sales continued to grow, the company faced a significant drop in the ASP of its smartphones. Despite the iPhone 5 being the most popular model, its ASP declined to the lowest figure registered by Apple since the iPhone's launch in 2007. The ASP reduction is due to strong sales of the iPhone 4, which is sold at a strongly discounted price. Mr. Gupta said. “While Apple’s ASP demonstrates the need for a new flagship model, it is risky for Apple to introduce a new lower-priced model too. Although the possible new lower-priced device may be priced similarly to the iPhone 4 at $300 to $400, the potential for cannibalization will be much greater than what is seen today with the iPhone 4. Despite being seen as the less expensive sibling of the flagship product, it would represent a new device with the hype of the marketing associated with it.”
- Lenovo: Lenovo’s mobile phone sales grew 60.6 percent to reach 11 million units in the second quarter of 2013. Lenovo’s quarter performance was bolstered by smartphone sales. Its smartphone sales grew 144 percent year-over-year and helped it rise to the No. 4 spot in the worldwide smartphone market for the first time. Lenovo continues to rely heavily on its home market in China, which represents more than 95 percent of its sales. It remains challenging for Lenovo to expand outside China as it has to strengthen its direct channel as well as its relationships with communications service providers.
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Mr. Gupta said.
“With second quarter of 2013 sales broadly on track, we see little need to adjust our expectations for worldwide mobile phone sales forecast to total 1.82 billion units this year. Flagship devices brought to market in time for the holidays, and the continued price reduction of smartphones will drive consumer adoption in the second half of the year.”
Additional information is in the Gartner report "Market Share Analysis: Mobile Phones, Worldwide, 2Q13." The report is available on Gartner's website at http://www.gartner.com/document/2573119.
COMMENTARY: It would appear from the above numbers that Samsung, and Android smartphones for that matter, are poised to leave the Apple iPhone in the dust once and for all. One could easily come to that conclusion, but the majority of iPhone users don't feel that way. Apple Evangelists simply don't think like Android users. They are not your normal consumers, but religious zealots. They still believe that the spirit of Steve Jobs walks the halls of their Cupertino headquarters and will bring them "magical" devices that they will "lust for" and will put "a dent in the Universe," and are worth the extra bucks that they pay for them. Well, if the rumors are right, Apple is not taking their loss of market share lying down. Apple aficionados keep asking:
"When is the next iPhone coming out?"
"Should I wait for the next iPhone or just get one now?"
"And why would I want the next iPhone to read my fingerprint?"
It happens to me every year around this time -- a deluge of questions about the next iPhone.
And the timing of the rumors and interest makes sense. For the past two years, Apple has released a new iPhone in September, which means that many are preparing for a long-anticipated upgrade. And yes, according to reports, Apple is now gearing up for its annual September iPhone event where it is expected to release the successor to the iPhone 5 -- presumably the iPhone 5S -- and another phone called the iPhone 5C.
Yes, Apple is rumored to be releasing not one but two iPhones this year.
For those who have questions about the next iPhone, when it is coming and if you should wait, you've come to the right place: Here's a guide just for you. Yes, you. Here's everything we've dug out about Apple's next phones, keeping in mind that Apple has declined to comment on all of the following reports or speculation.
The iPhone 5S
The iPhone 4S is to the iPhone 4 as the iPhone 5S is to the iPhone 5. No, this isn't the SATs, but just as the iPhone 4S had a similar design to the iPhone 4 but with a few new features, the iPhone 5 is expected to follow a similar pattern. Don't expect a bigger screen on iPhone 5S, even though Apple seems to be cooking that up too. According to various reports, the iPhone 5S will have a very similar design to the iPhone 5, but will have the following changes.
Fingerprint sensor
Siri was the standout feature of the iPhone 4S, and all signs point to a fingerprint sensor as the standout feature of the 5S. According to various reports, including one recently from 9to5Mac, the iPhone 5S will have a fingerprint sensor in the circular home button.
And there's more supporting evidence for this. Last year Apple bought AuthenTec, a biometrics reader and mobile security solutions company, and a folder called "biometrickitUI" was recently found in the iOS 7 software code. "A fingerprint that changes color during the setup process" was also written in the software.
Mark Gurman of 9to5Mac wrote this week that according to his sources, the reader would be in the home button and work better than some competing solutions that have appeared on other smartphones, such as the Motorola Atrix.
But here's a question: Why would you want to have a fingerprint sensor on a phone, iPhone or not? The hardware feature would be a way to "authenticate" you and offer another way of securing your phone. It would also likely offer an alternative to entering a PIN or password. Apple has also already said that iOS 7, the next version of the iPhone software, has more security or authentication features to protect against iPhone thefts or Apple picking. For instance, one feature requires you to input your Apple ID before resetting the device.
Improved processor and camera
Much less is known about the other hardware improvements, but according to some sources,the phone will have a new version of Apple's processor (presumably called the A7), which will naturally be faster and more efficient, aiding with battery life. It's also expected to pack an improved camera, which Apple Insider reporting that will have an a better flash for taking better photos in low-light conditions.
Gold
According to various outlets, including Techcrunch, AllThingsD, iMore, and 9to5Mac, the next iPhone will come in a new color. A gold model will join the current black and white iPhone models. It seems, though, that this being Apple, we're not talking a gaudy, blinged-out gold but a more tempered champagne color.
The iPhone 5C
But that's not all we're going to hear about colors. There is speculation that there will be another, more affordable iPhone: the iPhone 5C. The C is said to stand not for cheap but for colors. According to various leaked photos, the iPhone 5C is made of plastic and will come in various hues, including green, pink, white, blue and yellow. Australian blogger Sonny Dickson has published a number of photos of the purported back shell of the phone.
Because the phone is made of plastic, versus the aluminum and metal materials used for the iPhone 5 (or 5S), it is expected that the phone will be more affordable than the 5S, which will presumably start at $199 with a two-year contract. Apple experts, including John Gruber of Daring Fireball, have suggested that the 5C will replace the lower-cost iPhones on the market, such as the iPhone 4 or 4S. (Apple usually drops prices on older phones when a new model is released.)
The Software
Apple has not commented on any of the aforementioned hardware rumors, but it has mentioned something that is coming to the iPhone: iOS 7. In June, Apple showed off the completely revamped version of its iPhone and iPad operating system. The software has been given a complete face-lift, with new icons, animations and features.
Specifically there is a new Control Center area, finally making it easier to get to frequently used settings, including Wi-Fi and screen brightness. The multitasking view is also new, with a card view that lets you swipe to close apps.
We've highlighted a few more of the new features coming to iOS 7 here. And don't just swipe away the importance of the software this year. Even if you don't buy a new iPhone, the new version of iOS will change the look and feel of older models.
The Release Date
"When is the next iPhone coming out?"
Ah yes, the big question I have been asked for months. According to AllThingsD, Apple is planning to hold an event on Sept. 10. If all follows Apple's past scheduling, that would put the iPhone on shelves a week and a half later, around Sept. 20. The Wall Street Journal also reported that Apple was on schedule to ship a "new high-end and low-end iPhone in early September."
But, of course, until Apple takes the stage most of this is just rumor and speculation. Apple CEO Tim Cook and Apple's Senior Vice President of Design Jony Ive have the real answers to the flood of iPhone questions I get every year, but I'm confident in saying this: A new iPhone is coming and, yes, you should wait.Courtesy of an article dated August 14, 2013 appearing in Gartner and an article dated August 20 2013 appearing in ABC News
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