Skip to main content

Low-Prices Driving Smartphone Shipment Growth

The global market for smartphones continues to forge ahead at a record pace. According to the latest market study by ABI Research, smartphones made up 19 percent of all handsets shipped in the second quarter -- that represents a 12 percent increase over the first quarter, and a 50 percent jump compared to the same quarter in 2009.

ABI's senior analyst Michael Morgan says that growth is being driven by falling handset prices. Cost is no longer much of an obstacle. One of the key remaining barriers to smartphone adoption in subsidized markets is now the cost of the data plan -- rather than the cost of the handset.

According to ABI, 10 percent would normally be considered very good quarter to quarter growth, Morgan notes, but in the smartphone segment that's not the case.

"The market is exploding," he says, "but there are so many players and so many operating systems that the question becomes, Can this market structure be sustained? Most observers say no -- it needs to boil down to three or perhaps four key operating systems."

In addition, the huge numbers of smartphones now connected in the U.S. market -- especially iOS and Android models -- are creating network capacity concerns that are impacting the value chain within the mobile ecosystem.

Apple shipped about 8.4 million iPhones in Q2, of which about 3 million were iPhone 4 models that only launched a couple of weeks before the end of the quarter. The Q3 results were even more impressive, posting a 68 percent quarter-over-quarter growth.

HTC also did very well, with shipments growing from 3.3 million to 5.3 million units the by the start of the third quarter, and its improvement continued through Q3.

RIM recently launched its latest OS but, says Morgan, "RIM hasn't seen the full benefit of its OS launch yet," with QoQ growth moving only from 10.5 to 11.2 million shipments.

Popular posts from this blog

Linux Phone Standards Forum

A new Linux Phone Standards Forum (LiPS) has been founded to promote mass market adoption of Linux telephony terminals through standardization, interoperability testing and market education. The founding members include Cellon, France Telecom, FTM Labs, Huawei, Jaluna, Mizi, Open Plug and PalmSource. LiPS will support device manufacturers and operators in bringing to market Linux-based devices at lower cost (due to lower deployment costs through standardization), while facilitating the programming and development process for software and silicon vendors. The Forum said plans to work with other organizations such as the OMTP and OMA to identify requirements of distinct device categories including smartphones, feature phones, fixed-line, or converged devices. For each of these categories, or profiles, LiPS will define standard API�s that support relevant applications and services as well as a certification process for technology providers. In keeping with the open source philosophy, L

Cloud Services Gain New Momentum in Europe

Across European nations, more CIOs and CTOs are investing in public cloud services that become the essential foundation for the design and delivery of innovative digital transformation projects. Public cloud computing spending in Europe will reach $113 billion in 2022 and will double to $239 billion by 2026, growing at a 22 percent 5-year CAGR, according to the latest market study by International Data Corporation (IDC). Investments in Software-as-a-Service (SaaS) will continue to lead most of the spending in Public Cloud in Europe in 2022, but Platform-as-a-Service (PaaS) will be the fastest-growing segment. In fact, PaaS enables digital business deployment via the quick testing and production of new software applications. Public Cloud Market Development Professional services, banking, and discrete manufacturing will be among the top spenders in public cloud services, absorbing almost 60 percent of the overall public cloud services spend in 2022.  Human-centric industries are adjustin

Strategic Digital Transformation Spending Trends

Looking ahead, many Chief Executive Officers (CEOs) continue to selectively invest in new strategic digital transformation projects that enable a significant competitive advantage. Some additional investments may go towards improving existing IT infrastructure and operations.  Worldwide IT spending is now projected to total $4.5 trillion in 2022 -- that's an increase of 3 percent from 2021, according to the latest updated estimate by Gartner. For now, most CIOs will be relieved that their budget is safe from major cuts. While IT spending is expected to grow in 2022, it will be at a slower pace than in 2021 -- partly due to a 5 percent cutback on spending for personal computers, media tablets, and printers. Digital Transformation Market Development "Central banks around the world are focusing on fighting inflation, with overall inflation rates expected to be reduced through the end of 2023. However, the current levels of volatility being seen in both inflation and currency exch