Apple, Samsung dominate Smartphone market

VARINDIA- INDIA'S FRONTLINE IT MAGAZINE

 

Samsung and Apple together make up for 50 percent of the global smartphone market and are dominating the smartphone market, according to AIB Research. Although smartphone shipments grew 41 percent year-over-year to 144.6 million, as on the quarter ending March 2012, many smartphone OEMs are not enjoying the benefits of a rapidly expanding market. Samsung and Apple captured 55 percent of global smartphone shipments in Q1 2012 and over 90 percent of the market's profits. Here's a breakdown of the global vendor shipments for Q1, 2012. All values are in 'Millions of units'.

Of the top ten smartphone OEMs, only Samsung and Sony experienced sequential growth in shipments over Q4 2011. Nokia witnessed a 40% sequential decline in shipments and may soon be passed by ailing RIM in shipments despite the BlackBerry maker's 20% sequential decline in shipments. 

Michael Morgan, Sr. Analyst, Devices, Applications & Content said, "At this point in the year, Nokia will have to grow its Windows Phone business 5000% in 2012 just to offset its declines in Symbian shipments."

As the smartphone markets of North America and Western Europe pass 50% penetration, smartphone OEMs should seek growth in key markets, such as China, which continues to show strong shipment growth of over 80%.

Despite the shipment growth opportunities that China offers, smartphone OEMs will have to contend with local vendors ZTE and Huawei whose cost structures are tailored to deliver smartphones and homologated content ecosystems at the lower price points needed to drive growth across the country. 

Jeff Orr, Practice Director, Devices, Applications & content said, "As Nokia's market share in China plummets, the competition to fill' this power vacuum has the potential to make or break smartphone OEMs currently struggling with profitability and differentiation."

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