Market Stats

Smartphones Win in W. Europe

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W. European customers move away from feature phones as Q2 2011 smartphone shipments reach 21.8M units (growing by 48% Y-o-Y) while feature phone shipments total 20.4% (declining by -29% Y-o-Y), according to IDC.

However, the overall Q2 2011 W. European mobile market is in decline-- by -3% Y-o-Y, with shipments reaching 42.2M, due to a "deteriorating" eurozone economy hitting on consumer demand.

Other factors causing the decline include Nokia's sharp decline hitting the smartphone segment (which may indicate Symbian fans holding off on their phone replacements) and operators focusing on clearing inventories for the new devices to launch on Q3 2011.

IDC says this is the first time smartphone shipments surpass feature phone shipments in W. Europe, making up 52% of total shipments.

Mobile Market

All European countries see increasing smartphone adoption as mobile operators stop subsidizing feature phones.

Android continues leading the W. European smartphone market, with Q2 2011 shipments growing by 352% Y-o-Y and reaching 10.5M units-- 48.5% of total smartphone shipments for the quarter.

Samsung is now the top mobile phone vendor (in both smartphone and total shipments), as Nokia shipments decline further to second place. Samsung's Q2 2011 mobile phone shipments total 13.9M units, with 33% market share and 29% Y-o-Y growth.

Meanwhile Nokia Q2 2011 shipments total 9M, with 21% mobile market share (down from 37% in Q2 2010) and a Y-o-Y decrease of -44%.

On the smartphone front, Samsung leads with 22% market share and Q2 2011 shipments totalling 4.8M units (with impressive 700% Y-o-Y growth). Apple follows, with 21% market share and shipments totalling 4.6M units.

Go IDC European Quarterly Mobile Phone Tracker

Tablet Market: Who Will Win?

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The Financial Times reports tablet numbers will reach 300M by 2015 (nearly reaching 2008 PC sales) according to Credit Suisse. 

tabletsHowever the future tablet market will mirror the current netbook market, being "subject to brutal price competition" and split between high-end and budget models. 

According to Credit Suisse Apple will lock-up the high end of the market, as customers will refuse to pay iPad prices for non-iOS tablets.

Meanwhile the rest of the competition (Lenovo, Motorola, HP, RIM, Sony, Samsung) will have to lower their prices-- unless another company manages to close the iOS quality gap.

Amazon could also prove to be a spanner in the works-- if the rumours of an Amazon Kindle tablet costing $250 prove true, "price competition could touch even Apple’s beautiful devices," the FT says.

Go Tablet Computers: Come Round to My Pad (FT.com)

Tablets' Future Growth and Changes

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In-Stat predicts tablet shipments will reach 250M in 2017, thanks to increasing competition from major companies (including Samsung, Motorola, RIM, LG and HTC) entering the market.

TabletsThe analyst says tablets are competing not only against PCs-- but against all CE and computing devices.

The tablet market and its ecosystem will continue evolving, with the next few generations showing increasing differentiation towards different market segments and useage models.

Meanwhile degrading prices will make tablets increasingly attractive to the mainstream and enterprise markets, together with with increasing mobile apps and new semiconductor technologies.

The dominant tablet form factor will remain 9-11", with 56% share of the 2017 market.

Maintaining over 90% of the 2017 market are iOS and Android, with Windows following far behind-- the analyst says a number of companies will fail in the tablet market due to not supporting one of the leading OS platforms.

Go Tablet Shipments to Approach 250M in 2017 (In-Stat)

What do Europeans Buy Mobiles For?

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Mobile data weighs heavily in European customers' device purchases according to Yankee Group's latest study, as mobile data services continue growing further. 

mobile dataThe study finds European users (from France, Germany, Italy, Spain and the UK) use SMS as their main means of communications-- preferring it to traditional voice communications. 

Alongside texting, smartphones will also fuel the rise in the use of instant messaging, video watching and social networking over the next 2 years. 18% of European users already access their social networking via mobile phone daily, Yankee Group says. 

Consistent service performance ranks as the most important factor Europeans consider when gauging network service quality. 

"This shift to a data-centric mobile communications marketplace will create new business models," Yankee continues, saying such increasingly mobile behaviour will lead to "more captivating mobile experiences" from suppliers wanting to, well, supply what the market demands. 

Go Data Dominates Europeans' Mobile Buying Behaviour (Yankee Group)

Mobile Devices' Q2 2011 Results

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Gartner reports WW Q2 2011 mobile device sales total 428.7M, growing 16.7% Y-o-Y-- with smartphones accounting for 25% of overall sales (up from Q2 2010's 17%). 

One can safely say smartphones are on the rise-- at feature phones' expense, as customers in mature markets go for entry- or mid-level Android smartphones. 

However W. European smartphone sales show Q-o-Q decline, as replacement sales start showing what Gartner says is "signs of fatigue."

Mobile Market

Sell-in demand also slows down in Q2 2011, with a -4% Y-o-Y decrease due to inventory buildup during Q1 2011 in reaction to potential component shortages due to the Japanese earthquake.  

Nokia still leads the WW mobile device market, with 22.8% market share (down from Q2 2010's 30.3%)-- even if Gartner says its smartphone sales are low due to market competition, low Symbian demand and inventory management issues in Europe. 

Samsung comes 2nd, with 16.3% mobile device market share and sales totalling 69.8M-- 5M of which being Galaxy S II sales. 

Following are LG (5.7% market share for Q2 2011) and Apple (4.6% market share, up from Q2 2010's 2.4%). 

When it comes to smartphones, iOS and Android dominate the ecosystem with a combined Q2 2011 market share of nearly 62%-- double that of Q2 2010's 31%. 

Gartner concludes with its forecasts for 2011-- predicting mobile device sales will grow to around 12% by the year's end. 

Go Market Share: Mobile Communication Devices Q2 2011 (Gartner)