Q1 2011 Global Mobile Phone Market Share Analysis
According to a recent research report from Strategy Analytics, the global mobile phone sales volume for the first quarter of 2011 reached 350.1 million units, a YOY growth of 17.3%. It has been estimated that the shipments for each quarter of this year will be more than 300 million units while the demand for smart phones increases greatly, mainly because the smart phone consumer demand grows quickly in the mature world phone market and the phones with multiple SIM cards have become very popular in the emerging market.
In Q1 2011, the shipments of Apple phones were most conspicuous, surpassing those of ZTE, rising from the world number 6 (for last year) to the world number 4 in the market share. The shipments were 18.6 million units, setting new record. In summary, the performances of Apple and ZTE were outstanding in Q1 2011, while the three brands of LG, NOKIA and SAMSUNG declined in the market share. Both the market share and the shipments of LG declined in Q1 for the shipments of LG’s Feature phones declined and LG failed to respond to the fast changing smart phone market by taking active measures. The market share of NOKIA has suffered a 5.1% YOY decline though it has the largest market share. And it has met great challenges in the 3G smart phone market and the important American market. SAMSUNG’s market share suffered a YOY decline in Q1 2011, falling from 21.5% to 19.7%, partly due to the intensifying competition in the 2G and 3G touch screen phone market.
Except the changes in the market shares and shipments of the global top five brands, I have also found some interesting phenomena from the global market overview for Q1 2011, including the fast growth of the brands ZTE and HUAWEI of the mainland China. Motorola has turned the tables of the smart phone commerce towards its side and grown stably after it hit rock bottom. In addition, the shipments of the RIM phones loved by the people in Europe and North America have been affected by the shipments of Apple iPhones and Android phones and are declining slowly at present.
ZTE develops in Europe and North America markets, HUAWEI seems ambitious
The research report has shown that the shipment market share and the shipments of ZTE phones increased by 3.4% and 6.6 million units respectively in 2011, compared with the same quarter of 2010. The growth is amazing. The ZTE financial report has shown that the profit for Q1 is RMB 127 million, about a 15.86% YOY growth. However, the profit from the core telecommunication equipment sales increased by only 1.57%. The terminal products such as mobile phones, memory cards, achieved an over 50% YOY growth. Almost all the related data have shown that the development of ZTE in the consumer electronics market was excellent in Q1 2011. The executive vice president of ZTE has openly expressed that they believe that the development prospects of smart phones are good. As far as we know, more than half of the phones sold in this year in the United States are smart phones. ZTE will enter the advanced smart phone markets in the United States and Europe and regarded them as its growth engines if it plans to expand quickly in the smart phone market.
ZTE has pointed out that the shipments of the phones made by ZTE itself will be more than 80 million units by the end of this year, including 12 million smart phones. It seems to me that ZTE has an ambitious plan to earn a bigger share in the global mobile phone market. By the end of 2010, ZTE had earned a market share in the United States by cooperating with six American telecom vendors (there are only seven telecom vendors in the United States), bundling, offering products at reasonable prices, etc. though it had not entered the American market for a long time and it launched its first phone just in 2008. I believe that ZTE will enhance its cooperation with the telecom vendors in the European market to get footing for boosting the market share and the shipments quickly there. The future global shipments and market shares will be well worth observation.
ZTE introduced its flagship Adroid phones – ZTE Skate – at Mobile World Congress 2011. ZTE Skate uses the Android 2.3 Gingerbread operating system and it is equipped with a 4.3-inch (480×800) touch screen. ZTE Skate is also equipped with a 5 megapixel camera and some connectors made by ZTE itself. It is expected to be sold in Q2.
As Number One telecom equipment vendor in the mainland China and Number Two telecom equipment vendor in the world, HUAWEI plans to double its mobile phone shipments in 2011 by increasing the shipments to 60 million units (the shipments for 2010 were 30 million units) and boost its annual sales to over US$ 100 billion in the coming 5 – 10 years.
Compared with ZTE, another brand of the mainland China, HUAWEI has launched its mobile phones at almost all the global exhibitions though it entered the world mobile phone market later. It mainly sells the phones of low and medium prices. It believes that the global development trend of smart phones is good. Recently HUAWEI actively carried out the production, research and development of smart phones. I believe that HUAWEI will most probably grow up very quick in the future based on its abundant funds and its good cooperation relationship with global telecom system vendors, HUAWEI Brand of mobile phones will become popular very quickly in several years, and it will also affect the global mobile phone market share distribution in the future.
HUAWEI launched its entry-level smartphone - HUAWEI IDEOS X3 – at the Mobile World Congress 2011. It runson Android 2.3 Operating System. It boasts a 3.2-inch capacitive touchscreen and a 3.2 megapixel camera. It will be mainly sold in the entry-level smartphone market.
MOTOROLA Has Turned the Tables, RIM Is Declining Slowly
MOTOROLA Mobility issued its Q1 financial report at the end of April after it spun off from Motorola at the beginning of this year. The whole revenue was better than expected, the loss was reduced greatly and the financial forecast showed a strong ambition due to the hot sales of Android phones and the shipments of Xoom tablets. According to the report published by MOTOROLA, the shipments of mobile devices for Q1 were 9.3 million units, including 4.1 million smartphones and 250,000 Xoom tablets. The hot sales of Android phones and the start of Xoom tablet sales have filled MOTOROLA with much strength and power. The revenue for Q1 was US$ 3.03 billion, a 22.2% YOY growth. The loss for the same period of last year was US$ 212 million, and it had been reduced to US$ 81 million, a 62% reduction. According to the bold prediction of the company financial forecast, the company will break even in Q2, and it will earn US$ 35 million by the end of Q2 in the best case.
According to my observation, MOTOROLA recently spent all its efforts researching and developing Android smartphones and making market development strategies. It has abandoned the operation mode of Feature phones and has started selling its smartphones all over the world by providing excellent products. It has improved its organization by decreasing the number of workers greatly, reducing unnecessary expense. It has hoped to turn the tables by providing Android smartphones that meet the market demand. The Q1 financial report has shown that the strategy has been very successful. It is estimated that MOTOROLA will show a turn from loss to profit in 2011 by providing its smartphones and tablets.
MOTOROLA ATRIX MB860 is equipped with a dual core processor, a NVIDIA Tegra 2 AP20H Dual Core processor, which has great graph computing power and performance processing functions. It has 1 GB RAM and 16 GB storage on board. Up to 32 GB microSD is supported. Therefore, it has more than enough memory.
RIM, a Canadian smartphone manufacturer, whose mobile phone shipments used to grow stably in Europe and North America markets, failed to do as well as expected, facing challenges from Apple’s iPhone and Google Android devices. RIM has expressed that the BlackBerry phone shipments for this quarter will decline to 13.5 million units to 14.5 million units and the revenue of this quarter is expected to be US$ 5.44 billion.
The shipments of RIM for 2011 have been greatly affected by the Apple iPhone sales. The BlackBerry of RIM is no longer the only choice for business people and it will not be a guarantee of the shipments, for Apple iPhones and Android phones have become the alternative choices. In addition, the humanized user interface of Apple iPhone, the abundant resources of Google Adroid Market and the demassified phone models have made the BlackBerry sales for Q1 not as good as expected. RIM co-CEO Jim Balsillie said that the present period was a transition period and he was optimistic about the company’s future. He also said that the company was entering the tablet field while it was producing smartphones of new generation, the product layout would be adjusted, the main products would be changed from the high-order products to the low or medium-order products, RIM would enter the prepaid card phone market and the entry-level smartphone market and low-price BlackBerry phones would be launched in June 2011. The company expects the revenue for Q3 and Q4 will grow greatly, mainly because of the sales of new BlackBerry phones and the prudent cost management. I think the market share and shipments of RIM will be affected by the quick growth of Apple iPhones and Android phones and will continue to decline slowly until they decreased to some certain amounts. Whether the adjustment strategy of new products works well or not, depends on the product layout and marketing strategy of RIM, and whether the consumers buy the products or not.