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Smartphone Market Behavior in 3rd Quarter of 2013

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This post will give you an idea about the smartphone market behaviour in quarter 3 of 2013. In an earlier post we provided an overview about the smartphone market bahaviour of quarter 2 of 2013. Telco.lk will continue to put up posts related to smartphone market behaviour, since it will help you to deciding on a buying decision of a smartphone.

IDC (International Data Corporation) has played a huge role in getting the stats sorted and releasing them on time for reference of general public. This post is also based on statistics taken from IDC’s website. As per my view, if anyone interested in reading about trends in market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets IDC is the best place to visit.

A total development of 38.5% has shown year over year in the 3rd quarter of 2013 showing approximately 258.4 million of smartphones have been shipped in the entire world. It shows a production improvement of 21.4 million units by the 3rd quarter with respect to second quarter of 2013.

The 3rd quarter shows an instantaneous growth in smartphone shipments mainly because of reduction of price boundaries for the customers by the overall vendors. Low cost Android devices helped for this development a lot.

All vendors of smartphone manufacturers show frequent development of their sales in the 3rd quarter, basically most sale growing companies of smartphones can be named as Samsung, Apple, Huawei, Lenovo, LG respectively. 

Samsung has shown a huge development in shipments because of their smooth performance devices compared with other Android devices from other vendors. Even Samsung is having problems with battery power management. Performance wise Samsung is better than all other Android smartphones. Apple has increased their shipments with the release of 5S with the newly finger print protection and also 5C lead for the development of their market. Huawei also managed to achieve the market with the release of low budget packages for their customers expanding for their shipments for the European regions too since they have achieved their goals in Asian market. It’s not surprising to see that Huawei’s new smartphone is selling well. They offer a super slim design with iPhone like finishes, a beautiful 4.7 inch display and one that could operate when wearing gloves. Whether Huawei has the steam to go on to challenge Apple’s second spot remains to be seen, but for now, they’re a formidable competitor in China. If Apple would have had a 4.7 inch display out this year it is an uncertainity that Huawei would have enjoyed such a spike. On the other hand, Huawei made the right moves to impress the Chinese consumer. Lenovo has managed to overcome the shipments and expanding their market more comparable with LG getting a high demand for their devices in European regions.

 

huawei-ascend-p6-ofic2

HUAWEI has been a revolutionary vendor in world smartphone market. They have come up to the status they are in through continuous innovations. World’s slimmest smartphone at 6.18 mm – HUAWEI Ascend P6 is a classic example for this.

 

When looking at the trand HUAWEI can be considered as a huge achiever with its introduction of low cost smartphones with high end features. HUAWEI Ascend series has been a success in low end markets.

Explained demonstration about distribution and their development is illustrated in the following table.

Vendor 3Q13 Unit Shipments 3Q13 Market Share 3Q12 Unit Shipments 3Q12 Market Share Year-over-year Change
Samsung 81.2 31.4% 57.8 31.0% 40.5%
Apple 33.8 13.1% 26.9 14.4% 25.7%
Huawei 12.5 4.8% 7.1 3.8% 76.5%
Lenovo 12.3 4.7% 6.9 3.7% 77.6%
LG 12.0 4.6% 7.0 3.8% 71.4%
Others 106.6 41.3% 80.5 43.2% 32.4%
Total 258.4 100.0% 186.2 100.0% 38.8%

[Top Five Smartphone Vendors, Shipments, and Market Share, Q3 2013 (Units in Millions)]

References: http://www.idc.com

Prepared By: Asela Ekanayake (Undergraduate from SLIIT, Sri Lanka, Electronic Engineering)

Samsung to Expand Galaxy S Family – Samsung Galaxy S 5 Launch Predicted in Early 2014

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Hotly Anticipated Samsung Galaxy S 5 Might Launch in January 2014

According to the latest IDC Worldwide Mobile Phone Tracker which was released on July 25, 2013, by the end of the 2nd quarter of 2013, Samsung shipped more than doubled the total volumes of the next largest vendor – Apple, and shipped more units than the next four vendors combined. Samsung lead the Smartphone vendor list quite comfortably with a market share of 30.4%.

As per my view two factors have contributed vastly to the success of Samsung Smartphone. Those factors are continuous innovation and R&D and Android OS. They got the right mix in right time, which leads them to become market leader in the domain which Apple Inc. founded in 2007.

Year 2013 has been a challenging year for Samsung. They had to face a ban in USA. Apple Inc., Samsung’s biggest rival filed a case stating that Samsung has infringed 4 of Apple’s patents. Samsung found guilty of infringing on two patents: one that covers touch-screen technology, as well as a patent dealing with headphone jacks. This was not the first time they faced such a challenge from Apple.

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Samsung – Apple Clash Has Become a Normal Thing Now a days

After the ban was imposed by USA Government Samsung spokesman Adam Yates issued a statement. After addressing about the ban, he has given a hint about the strategy which Samsung is going to follow in launching Smart devices. The statement is as follows. “Samsung will continue to launch many innovative products, and we have already taken measures to ensure that all of our products will continue to be available in the United States.”

Unlike Apple, Samsung has had a very shorter time periods between their products. Samsung Galaxy Smartphone series is a prime example for this. The Galaxy S4 launched in April of this year, a follow-up to the Galaxy S III that launched 11 months prior to that. In between a few other Samsung products were launched. Samsung Galaxy Note II, Samsung Galaxy S III Mini, Samsung Galaxy Ace 2 are some of the famous products which were launched in between S III and S IV.

At the beginning of this week a Korean news website Naver (www.naver.com) has reported that Samsung is going to launch its 5th member of Samsung Galaxy S family by the end of next January. If that happens the S IV and S V are only 9 months apart. Naver news site belongs to a Samsung’s ex – employee according to a few blog posts.

Samsung Exynos

Samsung Exynos Processor

Samsung Galaxy S V is predicted to have a 16 megapixel camera in it. It is an improvement from the 13 mega pixel camera Samsung Galaxy S IV has. All the previous versions including the Samsung Galaxy S IV had all plastic cases. But S V is predicted to be different. It is predicted to have an all metal case. Also Samsung might go for a Samsung Exynos processor to replace the Qualcomm Snapdragon chip in the Galaxy S4. New optical image stabilization feature is another feature that is predicted to have in S V.

Samsung Galaxy S series lovers can wait until the end of January 2014 or end of February 2014 to see the launch of the brand new device. But let’s hope the wait would be a quite a unique one which would lead to quite a unique experience.

Nest – A Company with “APPLEness”

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Nest Protect – Reinventing the Smoke Detector

I believe it is ok to say that APPLE Inc. is another name for INNOVATION. Apple Inc. can be considered as the most innovative organization in 1st decade of 21st century. That is because, whenever Apple Inc. has come up with a product it has revolutionized the field that product belong to. iPhone, iPad and iPod are prime examples to prove it.  Some people believe that Steve Jobs as the reason for Apple’s success in technological innovation. There can be a truth in that. But how many engineers, designers, developers, etc might have put their efforts, ideas, etc to make those products a success?  

Tony Fadell is one such person who has put all his efforts to make Apple iPod a success. Tony Fadell once ran Apple’s iPod division and was part of Steve Jobs’ inner circle. To head iPod division and to work closely with Steve Jobs there should be something special about Fadell.

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Tony Fadell – The Founder and CEO of NEST. Fadell once ran Apple’s iPod Division. Due to that he has that APPLEness in him.

Now Tony Fadell has become an entrepreneur. He has started his own company named ‘Nest’with the support of a few investers – Google Ventures, Generation_, LightSpeed Venture Partners and Shasta Ventures. What Fadell says about Nest is as follows. “We take the unloved products in your home and make simple, beautiful and thoughtful things”.

The first ‘unloved’ thing Nest has chosen is the ‘smoke detector’. It is very hard to see smoke detectors in homes in most developing countries, though it is the case with developed countries. But in each country almost every commercial building has smoke detectors. When I saw the images and the idea of Fadell I had doubts in my mind. But the way he has given the thought about smoke detectors is completely different from the way I lead my thought process.

When he was asked about the reason for him to go for a product like a smoke detector he has replied by saying “Why not smoke detectors? Why hasn’t there been any innovation since the ’70s in smoke detectors as far as I can tell? They look basically the same. They do basically the same thing. And they annoy you the same as they did the ’70s when I was growing up. You know, they beep at night. They’ll beep and go off when you’re cooking, when you’re taking a shower”.

Steve Jobs and Apple revolutionized the way computer is being used in 1980s. The same combination revolutionized the music industry with the introduction of iPod. In 2007, with the introduction of iPhone, same combination revolutionized whole mobile phone business and data business all around the world. Being an Apple’s ex employee Fadell also seems to be having the revolutionary mind set. He and his team has the idea of revolutionizing the way a typical home is functioned. With the use of available technologies such as internet, mobile phones, etc Nest expects to revolutionize the way people are typically connected to their Homes.

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Nest Plans to do What Apple Does. They are planning to revolutionize the way people engage with their homes.

Fadell says that smoke detector launched by Nest, namely ‘Nest Protect’ and the previous product to Nest Protect – ‘Nest Learning Thermostat’ are only the starting point of the revolution. Answer to the question whether Nest would become successful or not could be seen in coming years. But Fadell and his team is quite certain about their success. It is quite clear from following statement which has made by Fadell. “Absolutely. Look, we’re talking about revolutionizing yet another category that you interact with at some point in your life or is part of your life. … We are passionate about … thermostats, and we’re passionate about smoke and carbon monoxide detectors. Why? That’s what it takes to reinvent categories. You need to have the passion. This isn’t just about business. This is about changing our lives and changing your lives to make it better.”

Nest is a company which is trying to grab a ‘Blue Ocean’ through continuous innovation and R&D. When looking at the things that they are trying to achieve one would say there is nothing extraordinary in the idea. But the specialty is in the way these people have knitted the existing resources and the concept of theirs. When looking at the concept they will use the networks of Telecommunication Service Providers heavily. That is to make the connectivity between the devices they are going to use in the solution. At the end of the day any operator could name Nest’s solution as a value added service. In near future Nest will come to your country as well. I say so because, Fadell says that their product can be seen in 90 odd countries.

So, if we could apply some Appleness to our thinking, with the great telecom infrastructure available in most parts of the world anyone could come up with a multibillion dollar idea. Finally it would be good to look at what Fadell says about his past involvement with Apple. As per him that is the place where he has learnt about ABCs of entrepreneurship.

“Apple was an amazing experience. And many of the people here are from there. And the biggest lessons we learned is about experience, right? It’s all about creating experience. Not just a product experience, but a sales experience. How do you learn about the brand experience? About how people communicate the experience they have to their friends and family. You know, I learned before coming to Apple about how you could make a great experience in the product. At Apple, [I learned] how you sell it. How you package it. How you unbox it. All of those things were key to the experience, and what we believe we’re doing here at Nest.”