16 November 2011

Smartphone shipments grow less-than-expected 42.6% in Q3

Despite a slowdown in key mature markets, smartphone shipments still grew 42.6% year-on-year from 82.8 million units a year ago to 118.1 million units in third-quarter 2011, according to the International Data Corporation’s ‘Worldwide Mobile Phone Tracker’. However, this growth was lower than IDC's forecast of 49.1% growth and lower than Q2/2011’s 66.7%.

Smartphone growth was lower than expected due to the delayed launch of the updated Apple iPhone. In previous years, the introduction of a new iPhone resulted in a spike in shipment volumes in Q3. Western Europe and the USA (two key regions for the iPhone launch each year) still posted sizable year-on-year gains, but lower than expected. Nonetheless, the worldwide market grew by double digits, underscoring the growing popularity of smartphones, says IDC.

“Samsung's ascendancy to the leadership position is the direct result of its broad and deep product portfolio,” comments Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends team. “Ever since the first Galaxy device launched last year, the company has aggressively expanded and refreshed its selection to include the latest innovations and most popular features. At the same time, its line-up of bada-branded smartphones has earned a welcome reception within key markets,” he adds.

“At the same time, Samsung's position will be a challenge to maintain, both in the fourth quarter and beyond,” believes Llamas. “Apple’s fourth-quarter launch of the iPhone 4S and lower pricing of older models will certainly boost volumes, and Nokia’s recent launch of Windows Phone smartphones marks the beginning of a new era for the company. While these point to larger volumes in the quarters to come, they will also lead to increased competition,” he adds.

“Vendors will struggle to maintain leadership of the global smartphone market this year, given its continued high growth, with opportunities for multiple companies to grow,” says Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. “Competitors will release smartphones with components, such as 3D displays, dual-core processors, and enhanced audio capabilities, that will help them drive higher shipment volumes and potentially leapfrog competitors.”

Top five mobile phone vendors

Samsung became the new leader in the smartphone market, with its total smartphone shipments exceeding 20 million units for the first time. As in previous quarters, its Android-powered smartphones drove volume growth, and joining the product mix was its refreshed Galaxy S II. In addition, its bada-powered smartphones continued to gain prominence in the market, and a new Windows Phone smartphone is expected to launch in Q4/2011.

Apple, after taking the number-one spot last quarter from Nokia, slipped to number two worldwide. But, even after relying on the iPhone 4 for five quarters and the iPhone 3G S for nine quarters, demand for the iPhone remained strong enough for Apple to realize double-digit growth year-on-year. Now that Apple has launched its iPhone 4S and re-priced its older models in multiple countries, the firm is poised to challenge Samsung for the leadership position.

Nokia maintained its third place position on the strength of its Symbian phones. Its most popular smartphones included older models, including the 5230, C5 and the C7. In addition, it launched four models based on its newly enhanced Symbian Belle OS, including the Nokia 600, 603, 700 and 701 as well as its first MeeGo-powered smartphone, the N9. While these new models kept Nokia's selection fresh, the N9 is expected to see limited availability and the Nokia 600 has been cancelled.

HTC moved up one place and maintained its upward momentum during Q3/11. HTC launched several devices for specific segments, including the multimedia-optimized Sensation, female-oriented Rhyme, and the entry-level Explorer. HTC expects to ship similar volumes in 4Q11.

Research In Motion began shipping its new BB OS 7 smartphones to the market during Q3/11, including updated versions of the BlackBerry Bold, the Curve and the Torch. But, as in previous quarters, the firm’s volumes were primarily comprised of older and less expensive models, leading to its first quarter of year-on-year decline and fifth place worldwide. This was still enough for RIM to maintain a presence among the top five vendors, with a sizable margin ahead of others.

Table: Top-five smartphone vendors, shipments, and market share Q3/2011 (units in millions). Vendor shipments are branded shipments and exclude OEM sales for all vendors.

See related items:

Apple becomes number one smartphone vendor in Q2/2011

Smart-phone sales to top 420 million in 2011, taking 28% of handset market

Smartphone shipments to grow 55% to 472 million in 2011 then 982 million in 2015

Smartphone shipments grow 75% to record 94 million in Q4

Tags: Smartphones

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