Telco.lk

Now you’re talking..!

Smartphone Market Behavior in 3rd Quarter of 2013

IDC_2007

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)

Windows 8 and Future of Personal Computer

 NotebookIf you are a Windows user, you will agree Windows XP and Windows 7 have given you the most convenient and user-friendly experience. Windows Vista was a complete failure as per my view (I’m sure most of you will agree on this as well). What about the new member of ‘Windows family’ – Windows 8? My experience is a mix bag. I’m using it on my laptop and it has not impressed me a lot. But anyway, since it is the latest thing available, I’m using it.

With all the joy and sorrow I had with Windows 8, I wanted to know what world thinks about windows 8. I came across a very interesting fact, which I thought would be great to share as a blog post. This is about the world Personal Computer sales after the release of Windows 8 in late 2012, to be exact on 1st of August 2012.

Is windows 8 an operating system designed for personal computers? Interesting question, isn’t it? Trends over last 1 year on world personal computers show that Windows 8 is not a blessing for world PC industry. Most reviews on W8 have stated that it is an OS more suitable for touch devices. As per my view this is a fare enough statement. I say so because, Windows have put up a guide for users on how to ‘Touch: swipe, tap and beyond’ (http://windows.microsoft.com/en-us/windows-8/touch-swipe-tap-beyond), which they did not do for their previous versions of ‘Windows’.

International Data Corporation (IDC) on their press release on 10th of April 2013, have stated that worldwide PC shipments totaled 76.3 million units in the first quarter of 2013 (1Q13), down -13.9% compared to the same quarter in 2012 and worse than the forecast decline of -7.7%. The extent of the year-on-year contraction has marked the worst quarter since IDC began tracking the PC market quarterly in 1994. The results also marked the fourth consecutive quarter of year-on-year shipment declines. Now the question is, ‘What is the correlation between PC shipment decline and W8?’

With the introduction of iPhone and Android, people around the world got used to small screen devices and teblets. The latest device which have revolutionized the mobile device industry is ‘phablet’ (Eg : Samsung Galaxy Note). The features of W8 have encourages to use touch devices instead of using personal computers which don’t have touch screens.

Acer-delays-Windows-RT-tablet-launch1

Tablet with Windows RT

Let’s say personal computer manufacturers decide to introduce touch screens. Then the issue will be solved and PC users will also be happy, isn’t it? Unfortunately this does not seem to be the case. PC industry efforts to offer touch capabilities and ultra slim systems have been hampered by traditional barriers of price and component supply. I don’t think most consumers in Sri Lanka would spend more than Rs. 100000 for a PC. Instead they would be more than happy to buy a PC which does not have a touch screen with Windows 7 in it. Or even there are some users who would consider buying a tablet or a high end phone (Eg : Samsung Galaxy S series, Samsung Galaxy Note series, Sony Xperia series, LG Optimus series, etc)

IDC’s Program Vice President, Clients and Displays, Mr. Bob O’Donnellhad made a very serious comment which I think have summarized the whole situation, which world PC sales have faced. I consider this comment as serious, because he speaks by looking at actual stats, not according to the ‘gut’ feeling.

At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market. While some consumers appreciate the new form factors and touch capabilities of Windows 8, the radical changes to the UI, removal of the imagesCAQ5Q4P8familiar Start button, and the costs associated with touch have made PCs a less attractive alternative to dedicated tablets and other competitive devices. Microsoft will have to make some very tough decisions moving forward if it wants to help reinvigorate the PC market.

The table I extracted from IDC Worldwide Quarterly PC Tracker clearly shows how PC industry has been affected quite badly over past one year.

Top 5 Vendors, Worldwide PC Shipments, First Quarter 2013 (Preliminary) (Units Shipments are in thousands)

Vendor

1Q13 Shipments

1Q12 Shipments

1Q13/1Q12 Growth

HP

11,997

15,726

-23.70%

Lenovo

11,700

11,705

0.00%

Dell

9,010

10,110

-10.90%

Acer Group

6,150

8,952

-31.30%

ASUS

4,363

5,401

-19.20%

Others

33,075

36,739

-10.00%

Total

76,294

88,635

-13.90%

Source: IDC Worldwide Quarterly PC Tracker, April 10, 2013

‘Creative destruction’ is an inevitable in present world set-up. But small screen devices, tablets and phablets has not been the major market for Microsoft Windows over past few decades and I don’t think Microsoft had ever thought that Windows 8 launch would contribute seriously to the decline in world PC sales. I say so, because still PCs are their ‘Bread and Butter’.

ios5-vs-android

Will ‘Microsoft’ be successful in coming in to the scene and challenge iOS and Android?

If they seriously want to enter the small screen, tablet and phablet market they have to seriously consider about the competition they have to face with open source mobile OSs like Android and Firefox OS. Also they have to consider about iOS as well. As a user who ‘used, using, loved and loving’ windows, I believe Microsoft should consider entering small screen, tablet and phablet market as a long term strategy. The speed which they tried to do the revolution is a bit too. This might lead to a situation which would remind us the idiom ‘Gigging Their Own Grave’ while digging other’s graves.