Finally! Feature phones and blackberries overtaken by rivals for the first time

Finally! Feature phones and blackberries overtaken by rivals for the first time
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Published August 15th, 2013 - 09:34 GMT via SyndiGate.info

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Sales of feature phones to end users totaled 210 million units and declined 21 per cent year-over-year.
Sales of feature phones to end users totaled 210 million units and declined 21 per cent year-over-year.

Worldwide mobile phone sales to end users totalled 435 million units in the second quarter of 2013, an increase of 3.6 per cent from the same period last year, according to Gartner, a US-based IT research and advisory company.

Smartphone sales to end users reached 225 million units, up 46.5 per cent from the second quarter of 2012.

Sales of feature phones to end users totaled 210 million units and declined 21 per cent year-over-year.

“Smartphones accounted for 51.8 per cent of mobile phone sales in the second quarter of 2013, resulting in smartphone sales surpassing feature phone sales for the first time,” said Anshul Gupta, principal research analyst at Gartner.

Asia/Pacific, Latin America and Eastern Europe exhibited the highest smartphone growth rates of 74.1 per cent, 55.7 per cent and 31.6 per cent respectively.

Samsung maintained the No. 1 position in the global smartphone market, as its share of smartphone sales reached 31.7 per cent, up from 29.7 percent in the second quarter of 2012, while Apple’s sales reached 32 million units in the second quarter of 2013, up 10.2 per cent from a year ago.

In the smartphone operating system market, Microsoft overtook BlackBerry for the first time, taking the No. 3 spot with 3.3 per cent market share in the second quarter of 2013.

Android continued to increase its lead, garnering 79 per cent of the market in the second quarter.

Samsung’s sales to end users grew 19 per cent in the second quarter of 2013.

“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,” said Gupta.

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. Its mobile phone sales totalled 61 million units, down from 83 million units a year ago.

Nokia’s Lumia sales grew 112.7 per cent in the second quarter of 2013, with the expanded portfolio which includes Lumia 520 and Lumia 720.

“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,” said Gupta.

“However, Nokia is facing tough competition from Android devices, especially from regional and Chinese manufacturers which are more aggressive in terms of price points.”

While sales continued to grow, Apple 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.

 “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,” said Gupta.

“Although the possible new lower-priced device may be priced similarly to the iPhone 4 at $300 to $400, the potential for cannibalisation 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’s mobile phone sales grew 60.6 per cent to reach 11 million units in the second quarter of 2013. Its smartphone sales grew 144 per cent year-over-year and helped it rise to the No. 4 spot in the worldwide smartphone market for the first time. -

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Copyright 2013 Al Hilal Publishing & Marketing Group

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