Us market samrtphone report

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Us market samrtphone report

  1. 1. US Smartphones Market Research Report by Rapidsoft (2011-12)ContentsMarket Definition .................................................................................................................................... 2History .................................................................................................................................................... 2Major Players .......................................................................................................................................... 2US Smartphone Market ........................................................................................................................... 3 Smartphone Market Players ................................................................................................................ 3 Smartphone Market Share ................................................................................................................... 4Bases of Competition............................................................................................................................... 5Smartphone Operating System ................................................................................................................ 6 iOS....................................................................................................................................................... 7 Android ............................................................................................................................................... 7 Windows Phone .................................................................................................................................. 7 BlackBerry OS ...................................................................................................................................... 8 Symbian .............................................................................................................................................. 8Threat Analysis ........................................................................................................................................ 9Conclusion............................................................................................................................................... 9
  2. 2. Market DefinitionA mobile phone that is built with advanced computing features, abilities and connectivity than a featurephone is known as a smartphone.HistoryThere was a time when Nokia was the market leader across the globe. But with change in technologyand advancements things changed. Before the smartphones were discovered there were PDAs (personaldigital assistants) and mobile phones. PDA allowed the user to carry important things with them thatincluded the meeting information, calendar, address book etc and the mobile phones allowed people tobe in touch with their loved ones as well as business associates.In the year 1992, IBM came up with Simon which was supposedly the first smartphone as it alsoincluded a calendar, address book, world clock, calculator, note pad, e-mail, fax functionality and games.Later on Nokia came up with 9000 series in 1996. In early 2000, Microsoft introduced a new version ofthe Pocket PC operating system. Later on smartphone devices based on the Palm OS were released andthen came Research in Motion (RIM) with the first BlackBerry.With time things changed and Apple came with iPhone the most popular smartphone and then cameAndroid that completely ate the market share for BlackBerry and Apple’s share to certain extent. In2010, 298 million smartphones were sold up from 175 million in 2009 up by 70%. Android players likeSamsung and Apple became the leaders leaving the Nokia, the Finnish company and RIM behind.Similarly smartphone sales saw an increase in 2011 as well. In the 1st quarter, 428 million mobiledevices were sold showing a 19% increase over a year and overall 85% increase year by year.Major PlayersMajor players include Samsung, Apple, RIM, HTC and Motorola. Apart from these there are many smallcompanies as well in the market like Nokia, LG and Dell etc. Major mobile operating systems in US areandroid, iOS and to some extent RIM as well. Recently Windows phone in collaboration with Nokia hasalso entered the market but we are yet to see the same creating an impact on the consumers. With iOS6coming out this year it’s hard to say whether RIM’s BlackBerry and Windows Phone will survive or not.Source: Gartner, IDC, Canalys and Strategy Analytics, NDP Group, StatsCounter, Wikipedia, Nielsen,ComScore
  3. 3. Top Mobile Operating Systems in the US from Jan’11 to May’12Source: StatCounter GlobalThis report has core focus on the US market as it differs from the Global Market. Every major playerthat is present in US is also a Global brand but they function differently when operating in US. Like forexample the patent war that is always going on between Apple and Samsung.US Smartphone MarketSmartphone makers from around the world have their foothold in the US market. But major playersinclude Apple’s iOS, Google’s Android and maybe to some extent Windows Phone and RIMs BlackBerry.These days’ people are using their smartphones on the go for checking mails, using social networkingsites, playing games etc. Smartphone is not only a consumer phone it’s also become an asset for theorganizations around the globe as it helps in lowering down the burden, paperwork and increasesaccuracy. The next segment includes the major players of the US Market. Smartphone Market PlayersAlmost all the manufacturers sell their smartphones in USA. The most popular mobile operating systemsin US at present are Apple’s iOS and Google’s Android. Major handset manufacturers include US basedSource: Gartner, IDC, Canalys and Strategy Analytics, NDP Group, StatsCounter, Wikipedia, Nielsen,ComScore
  4. 4. companies Apple Inc. and Motorola, Research in Motion Limited from Canada, Korea based Samsungand LG and Finnish manufacturers Nokia. Smartphone Market ShareThough Samsung is the market leader throughout the world when it comes to smartphones but it stilltrails Apple in USA. Of the total smartphones shipped worldwide Q1 2012, Samsung accounted for 42.2million — a 267% year-on-year surge (IDC ). Then it was Apple with 35.1 million (up 88.7%), Nokia &BlackBerry with 11.9 million (down 50.8%) and 9.7 million (down 29.7%) respectively. Lastly it was HTCwith 6.9 million (down 23.3%).Source: IDCSamsung’s and Apple’s total in the US accounted for 99% of the domestic market sales during the firstquarter of 2012. With 30% of the market share Apple stood on top in USA while Samsung is just 6%behind Apple with US market share of 24% in 2012. With the launch of Galaxy SIII and the predictedlaunch of iPhone5 and iOS6 things could actually turn.Source: Gartner, IDC, Canalys and Strategy Analytics, NDP Group, StatsCounter, Wikipedia, Nielsen,ComScore
  5. 5. Source: NDP GroupMarket share for mobile operating systems have also changed as compared to the last year’s reports.iOS was the winner but Android has gained the market share and left iOS behind globally. Followinggraph shows the 1st quarter results for both 2011 and 2012.Bases of CompetitionEvery consumer has a different set of criteria when it comes to buying a product or service. There aremany factors that are involved. Like for instance a girl in fashion would like to buy a phone that is trendyand looks chic but similarly a tech savvy person would look out for the features of the phone as wellapart from the style and looks. Major factors that influence the decision making involve aesthetic (lookSource: Gartner, IDC, Canalys and Strategy Analytics, NDP Group, StatsCounter, Wikipedia, Nielsen,ComScore
  6. 6. & feel), hardware and software functionalities, services and price. Features and price are the mostimportant factors and is an integral part of the decision making when buying a smartphone. Consumerslook out for price, size quality and inbuilt functionalities while buying smartphone and lately apps havealso started playing a major role in the decision making as consumers have started to realize that manyapps in their smartphones can save them from carrying lots of devices with them. Apps have started tomake a big impact on the consumers and that has increased the sales of the smartphones around theglobe. It is expected that in-app purchase will increase to 65% of the total smartphone apps market fromjust a mere 40% by 2015.Price is a really important factor for buying smartphone. But for some price really does not matter andhaving the most expensive mobile becomes a status symbol for them. Recently in a survey conducted byComScore revealed that around 50% of the people use smartphones to handle their business on the go.Mobile operating system has become an important aspect for the consumers while buying asmartphone. There was a time when people used phones by Nokia then RIM’s BlackBerry entered lateron Apple’s iPhone took the market share but ultimately Google’s Android became the winner andpeople across the globe are buying either an iPhone or an android phone over BlackBerry, Nokia andWindows phone.Smartphone Operating SystemMobile OS is the controller of any smartphone, tablet, PDA or other smart devices. The latest Mobileoperating systems combine the features of personal computer operating system with touchscreen,Bluetooth, WiFi, NFC and more. Latest Mobile Operating Systems and their features: Comparison of smartphone OS BlackBerry iOS Android Windows Phone Symbian OS Open Handset Symbian Company Apple Microsoft RIM Alliance/Google Foundation Current 5.1.1 4.0.4 7.5 7.0.0 10.1 VersionSource: Gartner, IDC, Canalys and Strategy Analytics, NDP Group, StatsCounter, Wikipedia, Nielsen,ComScore
  7. 7. BlackBerry iOS Android Windows Phone Symbian OS OS Family Darwin Linux Windows CE 7 Mobile OS Mobile OS Closed Closed, Closed Development Open Source, Closed (propriet licensable, minor (proprietary Model extendable (proprietary) ary) customizations ) C, C++, Programmed Many, .NET(Silverligh Objective C, C++, JAVA Java C++ in t/XNA) CSource: WikipediaiOSiOS which was previously known as the iPhone OS, is the popular operating system developed by AppleInc. Initially it was introduced in 2007 for iPhone and iPod Touch later on it was extended to supportiPad and Apple TV as well. Unlike other operating systems iOS only works on Apple devices. Apple’s appstore, iTunes, is the largest one with over 650,000 apps which have collectively been downloaded over30 billion times (Apple WWDC keynote address). SDK for iOS was released in 2008 for 3rd party but withno customization restriction.AndroidThe most popular operating system of today is Android, which is a Linux based OS for smart devices liketablets and smartphones. The OS is developed by Google and other companies. In 2006, Google hadbought the initial developer Android Inc. and in 2007, Open Handset Alliance, a consortium of86 hardware, software, and telecommunication companies were decided to keep on improving AndroidOS. This OS was released as an Open Source code under the Apache License. Open Source nature of theOS makes it popular among the app developers and JAVA is used by the developers for writing Androidcodes. The app store, Android Market now known as Google Play has more than 500,000 apps and it isexpected that more than 10 billion apps have been downloaded from Google Play.Windows PhoneThis is an OS developed by Microsoft after its predecessor Windows Mobile. It was launched towardsthe end of 2010. A new interface was introduced with this OS the Metro. Additionally, the software isintegrated with third party services and Microsoft services, and sets minimum requirements for theSource: Gartner, IDC, Canalys and Strategy Analytics, NDP Group, StatsCounter, Wikipedia, Nielsen,ComScore
  8. 8. hardware on which it runs. The OS follows licensing model of Windows Mobile, but it less customizableby the smartphone manufacturers. The phones with this OS have been made available recently.BlackBerry OSProprietary Mobile OS developed by Research in Motion for the BlackBerry devices. The OS providesmultitasking and supports various features that have been incorporated by RIM into its devices liketouchscreen, trackwheel, trackpad and trackball. Earlier BlackBerry devices were popular assmartphones for enterprises but lately it becoming popular among the youths as well. Third partydevelopers can write codes using the BlackBerry APIs.SymbianIt’s a mobile OS and computing platform for smartphones and currently is maintained by Accenture.Later on Symbian was released under a new license and converted to a proprietary model as opposed toan open source platform. With the release of iPhone and Android smartphones, Symbian lost its marketshare and Nokia decided to switch Symbian to Windows Phone 7. As a result of the migration Nokia andMicrosoft came with Nokia Lumia in 2011. Only time will tell, whether, this decision will get the Finnishcompany that developed Symbian back in the market. Mobile OS Market Share - Worldwide (May 2011 - May 2012) Android (21.83) iOS (22.66) Symbian (30.34) BlackBerry (8.79)Source: Gartner, IDC, Canalys and Strategy Analytics, NDP Group, StatsCounter, Wikipedia, Nielsen,ComScore
  9. 9. Threat AnalysisWith the technology evolving every minute, customers want new things and they are becoming veryprice conscious as a result of which the rivalry in the US market is fierce. Every firm tries to beat theircompetitor in their game; they try to be innovative so that they allure the customers. Presently thebiggest rivalry is between Apple and Samsung where Apple has also filed a law suit against Samsung onthe basis of design and functionalities to obtain patents. No particular firm in the market has asignificant amount of market power; every firm is vying for a greater piece of the pie. This has resultedin driving down of smartphone prices and relative price parity for flagship smartphones from each majorfirm. Firms are heavily involved in price discrimination, pricing their phones differently based on the saleoutlet. Smartphones sold through retailers are frequently cheaper than those sold through networkservice providers.ConclusionThe U.S. smartphone market is rapidly changing, with constant product introductions, quickly evolvingtechnology and designs, short product life cycles, aggressive pricing, rapid imitation of product andtechnological advancements, a highly price sensitive consumers. The U.S. smartphone market consists ofall firms throughout the world that manufacture and sell smartphones to U.S. consumers. No one firm inthe market has sufficient market share to control prices, resulting is strong rivalry and competitivepricing. The barriers to entry are high due to the existence of patents, high fixed costs and economies ofscale, regulation, and brand loyalty. The individual market participants engage in attempts at productSource: Gartner, IDC, Canalys and Strategy Analytics, NDP Group, StatsCounter, Wikipedia, Nielsen,ComScore
  10. 10. differentiation, some being more successful than others. Intermarket effects are also significant in theU.S. smartphone market. Multiple other markets have an effect on the U.S. smartphone market: fromthe suppliers, to the industrial designers, to the distributors, to the retailers, to the network serviceproviders. Because of its rapid change, the U.S. smartphone market is likely to be significantly differentin as short a time as 1-5 years.Source: Gartner, IDC, Canalys and Strategy Analytics, NDP Group, StatsCounter, Wikipedia, Nielsen,ComScore

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