Posts Tagged ‘Smartphones’

Smartphone Sales Increase 27 Percent

Thursday, August 13th, 2009

Although the overall cellphone market declined during Q2, sales of smartphones continued to increase.

A new report from Gartner found that 286.1 million mobile phone units were sold during Q2, a 6.1 percent decrease from Q2 2008. However, more than 40 million smartphones were sold, a 27 percent increase from last year.

One of the reasons smartphones remain popular is that most people buying new phones want either a QWERTY keyboard or a touch-screen. But people are still buying new phones based on price, and the current state of the economy is making it a tough time to sell phones.

“The recession continued to suppress replacement sales in both mature and emerging markets,” the report stated. “The distribution channel has dealt with lower demand and financial pressure by using up 13.9 million units of existing stock before ordering more. Gartner expects 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.”

The report found that Nokia is the market leader throughout the globe, as it sells almost as many phones as its next four competitors combined. In the United States, however, Nokia faces tough competition from the popularity of the iPhone, BlackBerry and Android.

The report also touched on the Palm Pre, which only sold 205,000 units, despite the amount of media attention the new phone attracted. Palm currently ranks 10th in the smartphone market.

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Smartphones Will Continue to Grow

Wednesday, June 3rd, 2009

Ovum, a technology consulting and research firm, is predicting that smartphone shipments will increase by almost 19 percent this year, even though the mobile phone market as a whole is facing a decline.

During Q1 of this year, smartphone sales exceeded 36.4 million units, a 12.7 percent increase from last year. According to data from Gartner, there was an 8.6 percent decrease in overall mobile phone sales.

According to MediaPost, the firm said that the economic recession is helping smartphone sales by forcing mobile operators and other companies to focus on creating devices for low and high-end segments. That means mobile users are able to replace their 2G phones with 3G models.

Ovum said that the success of Apple’s iPhone and the App Store has helped competitors focus on creating devices that allow developers to bring a variety of new applications and services to mobile devices. Examples of this include recent creations by Research In Motion, Google and Microsoft.

During the next five years, smartphones will see an average annual growth of 19.5 percent and shipments will reach 406.7 million by 2014. By that time, smartphones will account for 29 percent of the total mobile phone market. Ovum thinks that over time, phones that run on Symbian, including most Nokia models, will lose market share to competing platforms like Google’s Android.

By 2014, the firm says, Symbian will decrease from 58 percent to 43 percent of the market, while Android will overtake Windows Mobile and account for 18 percent of market share, shipping 72 million handsets in five years. The key, Ovum says, will be the distinction between “managed” and “unmanaged” smartphones.

“(Managed device platforms) deliver a tightly integrated end-to-end service proposition including content and applications directly to consumers pioneered by Apple and Google, the company said, adding that the adoption of this model by Nokia, Microsoft and Sony will drive sales of smartphones tied to their systems.

“Unmanaged smartphones will still have a place in the market,” the company added. “However, they will appeal mainly to users who do not wish to be tied to a particular vendor’s offering or are content with a more basic service package.”

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Smartphones to Grow Despite Bleak Market

Thursday, May 21st, 2009

If there’s one thing that came out of the recent Reuters Global Technology summit, it’s the fact that the sale of smartphones will grow this year.

Lee Williams, chief of the Symbian Foundation, said sales of smartphones will grow 12 to 15 percent this year. He said larger display sizes and more memory for media are encouraging consumers to buy smartphones.

“For the first time people are realizing you don’t have to carry your digital camera with you and your phone, for the first time people are realizing that you can do your email and access Internet services on your mobile phone,” Williams said.

Some analysts are forecasting that phones with advanced capabilities, like e-mail or Internet browsing, will grow more than 30 percent. ARM, the world’s leading chip designer, said it expects the smartphone market to grow 10 percent and SFR, France’s second-largest mobile operator, said it has seen a strong demand for smartphones.

“There we are seeing strong demand and strong growth,” SFR Chief Executive Frank Esser said at the summit.

Although smartphones are seen as a bright spot, the cell phone market as a whole is shrinking. From January to March, the cell phone market saw production decrease by 13 to 16 percent and the market is expected to decrease by 10 percent this year because of the recession.

A sign of the tough times, Nortel Networks, Canada’s wireless equipment maker, and Qimonda, Germany’s equipment maker, have filed for bankruptcy protection. Despite this, Williams said, the mood in the wireless industry has begun to improve, with companies seeing “the light at the end of  the tunnel.”

“They realize they are still in a tunnel and they don’t know how long it will take to the light, but if you go back two or three months nobody could even see the light,” he said. “It’s still tight and awful … I do think some still have to be hit by a train in this tunnel though.”

As for the future of Symbian, Williams said he expects membership to grow to more than 100 by the end of this year, excluding independent software vendors. The foundation had 78 members in February.

The foundation inherits intellectual property from Nokia and other former shareholders of Symbian, a United Kingdrom-based smartphone maker. Nokia bought out other shareholders of Symbian last year and committed to give its software to an independent foundation that would develop it on an open-source basis.

Since then Symbian has lost market share to companies like Apple and Google, but Williams said he expects that trend to turn around. He said Symbian has seen increasing interest toward its software from chinese and Taiwanese companies. Symbian has already been in talks with Huawei anad ZTE, Chinese companies known for their aggressive pricing.

“We have very active discussions with both of those companies,” Williams said, adding that it’s likely one or two of China’s mobile carriers, three to five original design manufacturers and at least one chip maker would join the foundation.

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