 |
Smart phones defy slowdown
- Nokia retains lead, with Apple and RIM rising fast, but
Microsoft loses ground
Palo Alto (US), Singapore and Reading (UK) – Monday, 17 August
2009
For immediate release
- Nokia maintains global lead, although its performance varies
by region
- Touchscreens become the preferred interface, representing
40% of all shipments
- Apple’s success continues, as the iPhone takes 23% of the
North American market
- RIM continues to gain share, succeeding with its push into
the consumer market
- Operating system choices are proliferating, primarily at
Microsoft’s expense
Q2 research highlights
Smart phones continue to shine as one of the brightest spots of
the technology industry, with shipments growing despite the global
recession. Innovation in interfaces, design, applications and
promotion continue to excite consumers, which, in contrast to the PC
industry, is helping to keep average selling prices stable. The rise
in data traffic seen by mobile network operators is finally
generating a return on their investment in broadband capacity and
will drive further infrastructure expenditure.
Apple has established industry leadership in terms of industrial
design, ease of use and application availability, offering one of
the most desirable devices on the market and setting a standard that
rivals are striving to emulate. It reinforced its position during
the quarter by launching the iPhone 3GS. Pete Cunningham, Canalys
senior analyst, said, “Apple has revolutionised the smart phone
sector, leapfrogging more experienced rivals. The competition must
move much faster to close the gap in terms of functionality and
design and at the same time try to target Apple’s weak spots. These
are primarily related to its business model, which requires premium
upfront pricing, high cost of ownership and, in many countries, a
restricted operator line-up.”
Competition is building in a number of different forms. RIM has
successfully expanded its product portfolio to include a wide
selection of devices and interfaces that appeal to a range of
customers at different price points. This includes 2.5G models that
are smaller, lighter, lower cost and have better battery life than
most of its 3G rivals. Palm has received widespread acclaim
following the launch of the Pre in the US during Q2. Chris Jones,
Canalys VP and principal analyst, added, “As a relatively small
company, Palm has shown what creative leadership and focused
investment can achieve. By going back to its roots and developing
its own operating system, it has produced an innovative and
differentiated product. Investors have responded to this, with its
share price growing over 70% this year. Palm still has plenty of
challenges ahead – it must find the resources to launch the Pre on
the global stage, while continuing to fund development of its
product pipeline. But it is remarkable how much better the prospects
are for this company than just one year ago.”
Another emerging trend is the rise of the Google-led Android OS,
which is already taking 3% of the smart phone market. Success so far
has been driven through HTC, but with many other vendors, including
Samsung, joining the fray, volumes are expected to increase
substantially. The free licence model, tight integration with Google
applications and the potential for a high degree of vendor and
operator customisation are all benefits attracting industry
participants.
Jones continued, “It is noteworthy how differently the smart
phone business is developing compared to the PC industry. PCs are a
highly standardised, commoditised platform, where one model is often
largely indistinguishable from another. Consequently, PC price
points are incredibly low, which is good for customers, but the
industry lacks excitement. Smart phones are different – Nokia,
Apple, RIM and Palm have all achieved success by developing their
own operating systems and delivering distinct devices and
interfaces. Android customisation will further add to this diverse
mix. As a result, new smart phones are front page news around the
world. Admittedly the wide choice creates disadvantages too. Network
operators must endure high certification and support costs, while
independent application providers face the cumbersome process of
porting apps to multiple operating systems. The main loser has been
Microsoft’s highly standardised Windows Mobile platform. Its smart
phone market share has now fallen below 10% and the trend is likely
to continue as many of its OEM partners, including HTC, Motorola and
Palm, are focusing investment on other platforms.”
Another smart phone market characteristic is how behaviour
differs around the world. Rachel Lashford, MD of Canalys APAC, said,
“The English-speaking media tends to be dominated by the industry
trends seen in the US. However, both EMEA and APAC are larger
markets for smart phones and we see different companies leading
there. Nokia is very strong in the key markets of India and China,
while companies such as Samsung and Fujitsu have substantial
leadership in their homelands of Korea and Japan respectively. As
success in the mobile industry becomes shaped more by software and
the Internet we expect these trends to continue – language, culture
and network operators are mainly ‘local’. Consider, for example, the
challenges Google is facing in China or how eBay failed to take off
in Japan.”
In addition to smart phones, netbooks are the other hot area
within the technology industry in this difficult year. The
competition and opportunities created between these platforms will
be discussed at the Canalys Mobility Forum, taking place on November
17, near London’s Heathrow Airport. Full details are available at
canalysmobilityforum.com. The new Canalys smart phone market
trends report is now available. More details can be found at
www.canalys.com/services/reports.
About the service
The shipment estimates discussed in this release come from the
market-leading Canalys
Smart Phone Analysis services. Canalys offers services looking
at the markets by country in Asia Pacific, North and Latin America
and EMEA, as well as providing global market overviews and
survey-based analysis of consumer and enterprise attitudes and
preferences toward mobile applications, devices and services.
About Canalys
Canalys specialises in delivering high quality market data,
analysis and advice to the world’s leading technology vendors. It is
recognised as a key provider of continuous advisory services and
confidential custom projects for marketing managers and strategists
within blue-chip IT, telecoms, navigation and consumer electronics
companies. It has unrivalled expertise in routes to market for all
kinds of high technology products and services in the consumer, SMB
and large enterprise segments, and provides worldwide market data
and trends analysis.
Receiving updates
To receive future Canalys press releases
directly, please e-mail a request with your details to press@canalys.com
or complete this form
specifying the technology market topics in which you are most
interested.
|
|
