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02
May

Market Monitor : Q1 2014 :: Handset & Smartphone Markets Landscape

Counterpoint Research team of Analysts have completed preliminary sizing of the global handset and smartphone market as few OEMs have already released their Q1 2014 (Jan-Mar) performances. Following are our preliminary market share and rankings according to our quarterly Market Monitor service.

The key highlights of the quarterly performances so far include:

 

Market:

  • Handset shipments reached a record March quarter high of under half a billion units for the Q1 2014 quarter (Growth 9% YoY)
  • Smartphone shipments were slightly under 300 million units, a first quarter record  (Growth 28% YoY.)
  • Smartphone now represent 64% of all mobile phones shipped during the quarter (55% in Q1 2013) as feature phone demand is briskly shrinking across globally. Consumers can buy a new branded smartphone now for less than $50 and will be for under-$40 by year end
  • Demand across developed markets such as North America & Western Europe shrunk coming from a strong holiday season quarter while emerging markets continued to grow above industry average.
  • Our Market Pulse data suggests healthy sell-out volumes for Samsung, Xiaomi, however, some Chinese OEMs and Apple saw some inventory build up post-February which could affect their Q2’14 performance.

OEMs

Overall Mobile Phones

Q1'14 Mobile Phones Shipments Share Summary

  • Samsung still ships a mammoth more than 100 million phones per quarter but growth  was down 1% annually & 8% sequentially. Feature phone shipments declined & tough competition in low-end but mid- to high-tier remained steady during the quarter
  • Nokia was the second largest OEM globally but declining feature phones and stagnating smartphone growth held back OEM. The growth down 16% YoY as the Devices & Services now will be part of Microsoft
  • LG, Huawei, Alcatel & Lenovo continued to fiercely contest for the fourth and fifth spots.
  • However, the biggest surprise was Chinese smartphone maker Xiaomi which almost quadrupled its volumes with rising demand for its expanding portfolio & reach extending beyond the domestic market. This has allowed Xiaomi to enter the top 10 global handset brand during the quarter for first time ever capturing 4% marketshare
  • The long tail of Asian OEMs continued to grow moderately and below the industry average as they are high on consolidation curve with fight for survival in the fierce sub-$100 segment

Smartphones

Q1'14 Smartphones Shipments Share Summary

  • Samsung was the number one smartphone supplier during the quarter growing on par with industry average and hence maintaining its marketshare from a year ago but down from a high of 32% in Q3 2013
  • Apple grew to its highest ever volume for the March ending quarter but a slip in marketshare as it grew slower than industry. Apple with expanding channels in key markets such as Japan, India & China extended its iPhone mania beyond home market
  • Xiaomi jumped to sixth spot globally for the first time with impressive performance, guerrilla marketing, expanding portfolio at low-end and high-end and expanding beyond China during the quarter. As our Monthly Market Pulse research highlighted earlier in the quarter that Xiaomi’s two models enter the global top-sellers list for the February 2014 month.
  • Huawei remained the number three but we believe its going to be a tough fight between these Asian OEMs for the third spot in coming quarters. Channel expansion, pricing & differentiation will be the key to success
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Neil Shah

Neil is a sought-after frequently-quoted Industry Analyst with a wide spectrum of rich multifunctional experience. He is a knowledgeable, adept, and accomplished strategist.

For over more than a decade, he has been offering expert strategic advice that has been highly regarded across different industries especially in telecom.

Prior to Counterpoint, Neil worked at Strategy Analytics as a Senior Analyst (Telecom). Neil also had an opportunity to work with Philips Electronics in multiple roles.

He is also an IEEE Certified Wireless Professional with a Master of Science (Telecommunications & Business) from the University of Maryland, College Park, USA.

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1 Comment for this entry

Peter Martinez
September 2nd, 2014 on 10:10 am

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