IDC revises 2015 smartphone estimates, predicts iPhone will drop to 16.9%

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  • Reply 61 of 96
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by asdasd View Post


    This year's smartphones shipments are expected to hit 472 million, up from 305 million last year, and then double to 982 million by the end of 2015.



    You're confused, it's not 472mil shipments in 2011, it's 472 mil smartphones in use in 2011, your whole post is pretty much predicated on that misunderstanding. These numbers come from subscriber surveys, rather than directly from sales channels. The 2011 sales are probably around half of that number.



    Also you need to understand that Apple growing slower than the smartphone market isn't impossible, there have been other quarters when it's come close to happening. This is because 100% of Apple's phones are smartphones which isn't true for anybody else but RIM. So Apple can be growing strongly in total terms but still seem weak when viewed from the smartphone angle.
  • Reply 62 of 96
    asdasdasdasd Posts: 5,686member
    Quote:
    Originally Posted by cloudgazer View Post


    You're confused, it's not 472mil shipments in 2011, it's 472 mil smartphones in use in 2011, your whole post is pretty much predicated on that misunderstanding. These numbers come from subscriber surveys, rather than directly from sales channels. The 2011 sales are probably around half of that number.



    They say shipments.



    EDIT: or the CNET article I was basing my posts on did. I dont know. Anybody care to look at the original article?



    Quote:

    Also you need to understand that Apple growing slower than the smartphone market isn't impossible, there have been other quarters when it's come close to happening. This is because 100% of Apple's phones are smartphones which isn't true for anybody else but RIM. So Apple can be growing strongly in total terms but still seem weak when viewed from the smartphone angle.



    We are talking about smart phones. Comparing like with like we are comparing smart phones with smart phones. So I dont get that. 80% is 80%, Apple is either outgrowing the smartphone market, or it isnt. Clearly for most of the last few years it has been outgrowing the market, as it has increased market share. from zero. Android has also outgrown, and the other's took the hit.
  • Reply 63 of 96
    jetzjetz Posts: 1,293member
    Quote:
    Originally Posted by cloudgazer View Post


    Because if you don't microsoft will hammer you with $12.50 license fees for android too. In fact there is evidence that MS is using license fees to encourage OEM support of WP7 and that they're hitting android only shops with punitive fees.



    At some point Google will have to pursuade an OEM to stand up to them, but if HTC is any indication most willl choose to cave.



    True but HTC is paying $5 per device. Rumours are that the others are paying $7. And Motorola is already fighting back. They've refused to back WP7 and are fighting Microsoft in court over their patent claims.



    Anyway, $7 is far less than $12.50. And more importantly it gets you an OS you can customize. This is the main problem for OEMs. WP7 offer zero opportunity to distinguish your handsets.
  • Reply 64 of 96
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by asdasd View Post


    They say shipments.



    You're right, appleinsider have mis-worded it - IDC themselves make it clear. Apologies.



    Quote:

    We are talking about smart phones. Comparing like with like we are comparing smart phones with smart phones. So I dont get that. 80% is 80%, Apple is either outgrowing the smartphone market, or it isnt. Clearly for most of the last few years it has been outgrowing the market, as it has increased market share. from zero. Android has also outgrown, and the other's took the hit.



    Ok - the best public numbers that I've seen are from comScore.



    http://www.comscore.com/Press_Events...r_Market_Share

    http://www.comscore.com/Press_Events...r_Market_Share



    Back in the Jan quarter (the 2nd link) Apple gained .6% of the US handset market, but it barely moved in terms of smartphone share. Or alternatively go and look at the really good graphs from Asymco



    http://www.asymco.com/2011/05/26/a-n...-market-index/



    If you look there you'll see that Apple's total handset share is growing fairly linearly. but that their share of the smartphone market is compartively static and volatile since their huge burst around Q3 2008. Now from those graphs I certainly wouldn't predict a decrease in their smartphone share, but it's a huge stretch to predict them taking 50% of the smartphone market by 2015.



    The issue is that their smartphone share is controlled mostly by how fast the legacy OEMs can switch production to smartphones. However from Apple's perspective in real terms it's all smoke and mirrors - for as long as they continue to outcompete and grow their share in the total handset market.
  • Reply 65 of 96
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by Jetz View Post


    Anyway, $7 is far less than $12.50. And more importantly it gets you an OS you can customize. This is the main problem for OEMs. WP7 offer zero opportunity to distinguish your handsets.



    Agreed, but MS will almost certainly be offering huge stonking marketing co-pays, I wouldn't be surprised if after accounting for them it turns out that it is paying the OEMs for each WP7 phone sold, at least for the first few years.



    That kind of financial support can buy a lot of love from OEMs, remember how long DELL stayed loyal to WINTEL in spite of demand for linux boxes and AMD machines? All based on preferential sales terms and marketing co-pays.
  • Reply 66 of 96
    asdasdasdasd Posts: 5,686member
    Quote:
    Originally Posted by cloudgazer View Post


    You're right, appleinsider have mis-worded it - IDC themselves make it clear. Apologies.







    Ok - the best public numbers that I've seen are from comScore.



    http://www.comscore.com/Press_Events...r_Market_Share

    http://www.comscore.com/Press_Events...r_Market_Share



    Back in the Jan quarter (the 2nd link) Apple gained .6% of the US handset market, but it barely moved in terms of smartphone share. Or alternatively go and look at the really good graphs from Asymco



    http://www.asymco.com/2011/05/26/a-n...-market-index/



    If you look there you'll see that Apple's total handset share is growing fairly linearly. but that their share of the smartphone market is compartively static and volatile since their huge burst around Q3 2008. Now from those graphs I certainly wouldn't predict a decrease in their smartphone share, but it's a huge stretch to predict them taking 50% of the smartphone market by 2015.



    The issue is that their smartphone share is controlled mostly by how fast the legacy OEMs can switch production to smartphones. However from Apple's perspective in real terms it's all smoke and mirrors - for as long as they continue to outcompete and grow their share in the total handset market.



    Good post. You are right that there were times when Apple did not beat the market and it is reflected in the Asymco graphs. Asymco is, as you prob. know, the best analyst in the business. He also does not rate IDC.



    However, given that IDC are predicting lower compounded growth in the next 4 years I would be betting on an increase in Apple share of that market, not a decrease. My reasons



    1) They are not on all carriers yet, worldwide - last I heard 50%. They will be in 4 years.

    2) They have not yet produced a cheap model for the prepaid market. I think they will.



    If 1) and 2) hold true then Apple's compound growth will exceed 20% per year. If so they beat the market.
  • Reply 67 of 96
    jetzjetz Posts: 1,293member
    Quote:
    Originally Posted by cloudgazer View Post


    Agreed, but MS will almost certainly be offering huge stonking marketing co-pays, I wouldn't be surprised if after accounting for them it turns out that it is paying the OEMs for each WP7 phone sold, at least for the first few years.



    That kind of financial support can buy a lot of love from OEMs, remember how long DELL stayed loyal to WINTEL in spite of demand for linux boxes and AMD machines? All based on preferential sales terms and marketing co-pays.



    We'll see.



    Anyway, this is why I've said, that it's a big mistake to write off WP7. Heck, I still remember coming on here a year ago when people said that Android (as a whole) would never outsell the iPhone. And now Android looks like it might outsell iOS as a whole.



    IDC glasses maybe tinted Windows, but looking through Apple coloured lenses is equally useless.
  • Reply 68 of 96
    asdasdasdasd Posts: 5,686member
    Quote:
    Originally Posted by Jetz View Post


    We'll see.



    Anyway, this is why I've said, that it's a big mistake to write off WP7. Heck, I still remember coming on here a year ago when people said that Android (as a whole) would never outsell the iPhone. And now Android looks like it might outsell iOS as a whole.



    IDC glasses maybe tinted Windows, but looking through Apple coloured lenses is equally useless.



    Actually IDC seems to be tinted Nokia. They think Nokia too big to fail in this market and whatever they sell as an OS, sells.



    We will know in about a year. What I dont know about Wp7 is how the average Joette will take to it. On any tube, or train, people are doing the multi-touch shuffle with Android and iOS devices.



    Whenever I see a WP7 phone I see geeks using it and am generally with them. ( Am a geek myself). I think it is ok, but not sure how the average guy will take to it. There is a lot to learn, and the tiles are in fact pre-loaded folders. Changing them is not very intuitive. Its certainly is very smooth, but the learning curve is a bit higher. It may be too late to the party.



    if nokia's hail mary doesnt work - and it isn't looking good - then the whole company will collapse.



    From the WSJ 31 May



    Quote:

    Finland-based mobile phone maker Nokia Oyj (NOK) Tuesday warned it expects net sales of its smartphones and services to be substantially lower than expected due to lower than expected average selling prices and mobile device volumes.



    The company said net sales at its devices and services division would be below the previously forecast range of EUR6.1 billion to EUR6.6 billion for the second quarter this year, while the division's non-IFRS operating margin will also be "substantially below its previously expected range of 6% to 9%."



    Nokia's smartphone business has suffered from intense competition and pricing pressure, particularly in China and Europe. The company said it has also seen a shift in demand towards lower priced devices which generate lower gross margins.





    However it said it is no longer in a position to provide financial forecasts for the rest of the year, and that previously stated forecasts for the third and fourth quarters and the full fiscal year are no longer valid.



    Apples suppliers are meanwhile , when polled, suggesting Apple is selling 87% more this may than last.



    Good job IDC then come out to save Nokia.
  • Reply 69 of 96
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by asdasd View Post


    1) They are not on all carriers yet, worldwide - last I heard 50%. They will be in 4 years.

    2) They have not yet produced a cheap model for the prepaid market. I think they will.



    If 1) and 2) hold true then Apple's compound growth will exceed 20% per year. If so they beat the market.



    I doubt that they'll produce a truly cheap model, though I can see the 3GS forking off to become a new family of 'affordable' iPhones. A cheap iPhone would risk eating into their incredible margins, and Apple are not a firm who are willing to pick up market share at the cost of profits.



    As to carriers, they're now on effectively all carriers in the UK and it has certainly helped them but they're still behind RIM here according to the only research I can find ( ICM ). At 9% in the UK that puts them a little ahead of their position in the US, but not materially so.



    I'm unconvinced that carrier penetration will be a substantial driver in all markets. People have proved very willing in most countries to shift carriers in order to get access to iPhones. I think it was a big deal in the US where AT&T has a terrible network and maybe it's a big deal in China and India, but in most of the developed world it won't make a huge difference.



    However in spite of all of that I think that they'll continue to grow their share of the total handset market, which is what really matters here. I think they'll do that because of their strong designs, vibrant ecosystem and their smooth OS. I just don't expect us to see a huge inflection in their growth rate, so going off those ASYMCO charts we'd be looking at between 10 and 15% of total handset share - or 20-30% of smartphone share.
  • Reply 70 of 96
    asdasdasdasd Posts: 5,686member
    The UK is actually quite a huge story for RIM in the last year. It almost doubled. There is a lesson there for somebody somewhere.





    The ICM report says this:



    The implication is that with the range of mid-market BlackBerry and Android options now available, both of these have the potential to put significant distance between themselves and iPhone,



    I think that true - the pre-paid market is big here. iPhones are too expensive. A line of 3GS type iPhones selling at around £250 will garner some of that market. And Apple need to do it.



    ( It does show that RIM is not doomed, there will be a need for keyboard devices).
  • Reply 71 of 96
    asdasdasdasd Posts: 5,686member
    The UK is, however, a weird outlyer for Europe. The real story for Europe is that iOS/iPhone is in a very strong position.





    http://www.pocket-lint.com/news/3834...android-europe
  • Reply 72 of 96
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by asdasd View Post


    The UK is, however, a weird outlyer for Europe. The real story for Europe is that iOS/iPhone is in a very strong position.





    http://www.pocket-lint.com/news/3834...android-europe



    That's smartphone share again though, not total handset share. In fact from that site Apple has 40% of the UK smartphone segment which is huge. But assuming that ICM are also correct that would imply that UK smartphone penetration as a whole is far lower than in the US.



    Again - according to that site iOS is again flat or trending slightly down as a percentage of smartphones only, but that's almost certainly a result of the rapid switchover from old phones to smartphones.



    Nokia is still incredibly strong in Europe, and mostly its their candybar phones that sell, so European smartphone adoption rates are still a little low (how else to explain 79% IOS smartphone market share in Switzerland!)



    Edit: I'm increasingly sceptical about this data-set, they're taking their numbers from statcounter, but here are the statcounter data for North America. That doesn't look remotely like the USA figures from comScore, or anybody else for that matter. Either everybody in Canada owns two iPhones or those numbers are off. Maybe they're including non phone devices?
  • Reply 73 of 96
    asdasdasdasd Posts: 5,686member
    Yeah - here are the other stats for smartphones from the original site - stat counter.



    Notes:



    http://gs.statcounter.com/#mobile_os...-201002-201102



    They have iOS in the lead in the US. This is probably installed base.

    Apple are nowhere in South America. Bada is bigger.

    Apple are nowhere in Asia but there is a slight increase, more pronouced in China.

    Apple are nowhere in Africa.



    iOS are leading the pack in the rich world.



    Back on the thread topic: where-ever Apple are nowhere, Symbian are massively in the lead. So if there is a one-one swap in those countries for a Windows phone, then yes IDC may be correct. But is there? Can Nokia pull that off. If Apple do want to trade margin for market share - and someday they must - they have a window of opportunity the end of this year, and the start of next.



    EDIT:



    I think that StatsCounter is measuring web usage, which is why iOS is much higher than you would expect - back in 2008. Nowadays all mobile browsers are pretty much equal so it is more realistic, although possibly over estimating iOS and Android.
  • Reply 74 of 96
    asdasdasdasd Posts: 5,686member
    Quote:
    Originally Posted by cloudgazer View Post


    That's smartphone share again though, not total handset share. In fact from that site Apple has 40% of the UK smartphone segment which is huge. But assuming that ICM are also correct that would imply that UK smartphone penetration as a whole is far lower than in the US.



    Yeah - about 25%. A lot of phones are pre=paid.
  • Reply 75 of 96
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by asdasd View Post


    Back on the thread topic: where-ever Apple are nowhere, Symbian are massively in the lead. So if there is a one-one swap in those countries for a Windows phone, then yes IDC may be correct. But is there? Can Nokia pull that off. If Apple do want to trade margin for market share - and someday they must - they have a window of opportunity the end of this year, and the start of next.



    I doubt Nokia can keep it all to be honest, but I suspect that they'll preserve a portion of their market share for a while at the price of all profit margins. Take a look at the USA numbers from that site, I think that these are including more than just phones. At the very least they must be including iPads.



    Edit: From their FAQ this is a web tracking service, so not really directly relevant to the IDC predictions - though definitely interesting.
  • Reply 76 of 96
    asdasdasdasd Posts: 5,686member
    Quote:
    Originally Posted by cloudgazer View Post


    Edit: From their FAQ this is a web tracking service, so not really directly relevant to the IDC predictions - though definitely interesting.



    I edited my post to mention this. My feeling is we can discount stats prior to Jan 20010, and there is still a bias towards iOS and Android. However most smartphones have equivalent browsers these days, so as the trend comes closer to now, it gets more accurate.



    ( in 2008 it shows iOS as > 80%).
  • Reply 77 of 96
    cloudgazercloudgazer Posts: 2,161member
    Quote:
    Originally Posted by asdasd View Post


    I edited my post to mention this. My feeling is we can discount stats prior to Jan 20010, and there is still a bias towards iOS and Android. However most smartphones have equivalent browsers these days, so as the trend comes closer to now, it gets more accurate.



    ( in 2008 it shows iOS as > 80%).



    It isn't so much the difference in browser quality, though that may still be somewhat present. It's the fact that they're including WiFi iPads and iPodTouches.
  • Reply 78 of 96
    macrulezmacrulez Posts: 2,455member
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  • Reply 79 of 96
    macrulezmacrulez Posts: 2,455member
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  • Reply 80 of 96
    asdasdasdasd Posts: 5,686member
    Quote:
    Originally Posted by MacRulez View Post


    Amen, brother.



    The only thing that matter to consumers is whether they enjoy the phone they purchased. None of this matters to developers either, because most of them are using cross-platform tools these days so they win no matter who's on top.



    Marketshare wars are for corporate marketing staff and web forum junkies. They mean nothing to anyone else.



    no, they're not. On the other hand developers win if there are more platforms, for sure.
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