Date: 20/06/2012

Apple and Samsung together capture 55% of smartphone market: ABI Research

ABI Research has released the “Smartphone Market Data” report that provides quarterly global and regional data for smartphone operating systems, ASPs, vendor market shares, revenues, air interface protocols, and technology attach rates.

According to the report, the smartphone shipments grew 41% year-over-year to 144.6 million as of the quarter ending March 2012. Samsung and Apple captured 55% of global smartphone shipments in 1Q’2012 and over 90% of the market’s profits. Many smartphone OEMs are not enjoying the benefits of a rapidly expanding market.

ABI Research has the question: Can anyone break away to become a strong third in this market?

Samsung and Sony experienced sequential growth in shipments over 4Q’2011 out of the top ten smartphone OEMs. Nokia observed a 40% sequential decline in shipments and may soon be passed by ailing RIM in shipments despite the BlackBerry maker’s 20% sequential dip in shipments. “At this point in the year, Nokia will have to grow its Windows Phone business 5000% in 2012 just to offset its declines in Symbian shipments,” says Michael Morgan, senior analyst, devices, applications & content.

Table: Select Smartphone vendor shipments in 1Q2012 (in million units)

Apple	Huawei	Nokia	RIM	Samsung	Sony	ZTE
35	6.8	11.9	11.1	43	7	4.9
Source: ABI Research

The smartphone market penetration passed 50% in North America and Western Europe and there is a strong shipment growth of over 80% in key markets, such as China. The smartphone OEMs should look for growth in the key markets.

Smartphone OEMs have to compete with local vendors ZTE and Huawei whose cost structures are tailored to deliver smartphones and homologated content ecosystems at the lower price points needed to drive growth across the country. “As Nokia’s market share in China plummets, the competition to fill this power vacuum has the potential to make or break smartphone OEMs currently struggling with profitability and differentiation,” adds Jeff Orr, practice director, devices, applications & content.

Source: ABI
Author: Srinivasa Reddy N