Smartphone market continues to grow, Samsung now takes the lead

In Q1 of this year, the smartphone market grew by 42.5 percent globally which comes as no surprise given the continued functionality that is being incorporated in the latest phone releases. Among all the major phone manufacturers, Samsung has come out on top as the leader of the pack with 29.1 percent of the pie, having increased 17.8 percent from last years numbers. As an added bonus, Samsung has now bumped Apple to the number two spot with 24.2 percent. What is alarming to me is that HTC is at the very bottom of the chain with an embarrassing 4.8 percent. Even RIM is still slightly stronger at 6.7 percent. So congratulations to Samsung and wake-the-heck-up HTC! Hit the break for more details.

FRAMINGHAM, Mass. May 1, 2012 – The worldwide mobile phone market declined 1.5% year over year in the first quarter of 2012 (1Q12), as Samsung ousted longtime leader Nokia to become the world’s top mobile phone vendor. According to the International Data Corporation (IDCWorldwide Quarterly Mobile Phone Tracker, vendors shipped 398.4 million units in 1Q12 compared to 404.3 million units in the first quarter of 2011.

Nokia has been the global market leader in total mobile phone shipments since the inception of IDC’s Mobile Phone Tracker in 2004. Samsung’s ascension to the market’s top spot is largely a reflection of its gains in the smartphone market over the past two years. “The halcyon days of rapid growth in the smartphone market have been good to Samsung,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker program. “Samsung has used its established relationships with carriers in a mix of economically diverse markets to gain share organically and at the expense of former high fliers such as Nokia.”

Meanwhile, the worldwide smartphone market grew 42.5% year over year in 1Q12, as Samsung overtook Apple for the smartphone leadership position. Vendors shipped 144.9 million smartphones in 1Q12 compared to 101.7 million units in 1Q11. The 42.5% year-over-year growth was 1% higher than IDC’s forecast of 41.5% for the quarter, and lower than the 57.4% growth in the fourth quarter of 2011.

“The race between Apple and Samsung remained tight during the quarter, even as both companies posted growth in key areas,” said Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends program. “Apple launched its popular iPhone 4S in additional key markets, most notably in China, and Samsung experienced continued success from its Galaxy Note smartphone/tablet and other Galaxy smartphones. With other companies in the midst of major strategic transitions, the contest between Apple and Samsung will bear close observation as hotly-anticipated new models are launched.”

Smartphone Vendor Highlights

Samsung reclaimed the smartphone leadership position and established a new market record for the number of smartphones shipped in a single quarter. Propelling the company forward was continued expansion of its Galaxy portfolio in nearly all directions – new and old smartphones, product and market segmentation, and multiple price points, screen sizes, and processor speeds.

Apple slipped to second place in the worldwide smartphone market, but nonetheless posted strong year-over-year growth to reach 35.1 million units shipped. Apple’s gains in the market benefited from iPhone availability at additional mobile operators worldwide, as well as sustained end-user demand among both consumers and enterprise users.

Nokia‘s Symbian phone shipments declined precipitously last quarter as demand dropped in key emerging markets, such as China. The company’s current smartphone woes make a speedy transition to products powered by the Windows Phone operating system, upon which it has bet its smartphone future, critical.

Research In Motion‘s BlackBerry unit decline continued last quarter, reaching levels not seen since 2009. Like Nokia, RIM is a company in transition. Smartphones running on its new platform, BB 10, will be released later this year. Until then, results like these may be a sign of things to come.

HTC‘s struggles in the U.S. market once again negatively affected its overall performance. However, its relatively strong performance in Asia/Pacific still allowed the company to maintain its position among the top 5 smartphone vendors. The company is staking future success in large part on its One X and S products.

Top Five Worldwide Smartphone Vendors, Shipments, and Market Share, Q1 2012 (Units in Millions) 

Vendor

1Q12 Unit Shipments

1Q12 Market Share

1Q11 Unit Shipments

1Q11 Market Share

Year-over-year Change

Samsung

42.2

29.1%

11.5

11.3%

267.0%

Apple

35.1

24.2%

18.6

18.3%

88.7%

Nokia

11.9

8.2%

24.2

23.8%

-50.8%

Research In Motion

9.7

6.7%

13.8

13.6%

-29.7%

HTC

6.9

4.8%

9.0

8.9%

-23.3%

Others

39.1

27.0%

24.5

24.1%

59.6%

Total

144.9

100.0%

101.7

100.0%

42.5%


About the Author: Tony Rosario

Yet another one of Krypton’s last son’s, Tony grew up in a small town not too far from Dallas, Texas. Being a lover of all things games, a good part of his childhood was spent mastering Mortal Kombat techniques and perfecting Fatalities, yet he always made time for artistic endeavors such as singing, acting and playing in rock bands. Tony graduated from the University of North Texas in Music Performance for Double Bass. He freelanced in the DFW area and taught privately for several years. During this time, he discovered the benefits a smartphone could make in his line of work, being able to respond to gig offers in a timely manner and navigate to performances with GPS, all while on the go. He did months of research, finally deciding on the Android OS. And the reason you ask? Emulators. The fact that he now had a phone, GPS system, instant messenger, mp3 player, camera and 4 different videogame consoles with 100+ games, all in a single device, was mind blowing. Tony’s new love for Android blossomed rather quickly into an obsession that landed him a job with Sprint. He now gets to play with all kinds of phones, fix them and write about them for Talk Android.


  • Lawrence D’Oliveiro

    Android—the mobile platform for the rest of us.

    (ex-Apple fanatic stealing a slogan used by them back in the 1980s)