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Mobilizing the Business and Business of Mobile

Posts Tagged ‘Market data

Nokia warns of falling markets in coming quarters

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Nokia, like Intel and Qualcomm before it, today announced that it was cutting its estimate for 2008 from 1.26 billion handsets sold to 1.24 billion handsets. In Q4 2008, Nokia anticipates it will sell 330 million handsets, well below the analysts estimate of 346 million. It also warned that 2009 is going to be lower than what it had estimated earlier.

As I have been saying for a while now, the economy is hurting a lot of sectors, including mobile. It remains to be seen which companies survive this downturn.

Written by dvdand

November 14, 2008 at 7:36 am

Posted in Handsets, Market data, Nokia

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Apple, RIM win smartphone marketshare from Nokia

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According to a report published by Canalys, a market research company, Apple and RIM are winning market share in the smartphone category from Nokia. By Q3 2008, 40 million smartphones were sold worldwide. This represents a 28% growth YoY compared to 3% growth for the larger mobile phone market.

Nokia lost significant ground YoY in Q3 down from 51.4% in 2007 to 38.9% in 2008. Nokia uses the Symbian platform which as a result also lost significant ground. Here are the top 4 smartphone platforms and their market share:

  • Symbian 46.6% down from 68.1% in Q3 2007
  • Apple 17.3%
  • RIM 15.2%
  • Microsoft 13.6%

Since the bottom three vendors are so close, there is going to be continued fight for the second spot. It is likely that RIM might overtake Apple in Q4 with its upcoming release of Blackberry Storm and also the recent release of Blackberry Bold.

[Via Reuters]

Written by dvdand

November 7, 2008 at 7:54 am

Samsung edges Motorola for largest phone vendor in US

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In a recent study done by Strategy Analytics, a market research firm, of the US mobile phone market, the vendor landscape has changed significantly. Motorola has lost its #1 spot which it held since 2004. Samsung has overtaken it and LG is close behind. Here are the top 3 handset vendors according to Strategy Analytics:

  • Samsung 22.4%
  • Motorola 21.1%
  • LG – 20.5%

Also in the report, RIM continues to maintain double digit market share in US for second straight quarter. Apple is in the 6th position and Nokia has lost some market share and is now at 8.4%.

[Via Reuters]

Written by dvdand

November 7, 2008 at 7:25 am

Is Mobile sector headed into troubled waters?

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Yesterday, AT&T announced some stellar performance numbers for the 3rd quarter 2008 led by growth in Apple’s iPhone 3G products. AT&T activiated 2.4 million iPhones during the quarter and their wireless data revenue grew to $2.7 billion. More recently, Apple also announced a great quarter with record sales of 6.9 million iPhones during the quarter. However, the future is very uncertain.

The end of last quarter saw the beginning of the economic downturn. We have already seen the effects of the downturn on Nokia which said its Q3 revenue fell by 7% from previous quarter. Sony Ericsson has also been affected by the downturn with their sales down 10% over previous quarter and profits down 1% over last quarter. No one knows how long it is going to last. As such all three companies mentioned above have lowered their forecast for the next quarter and the new year. That was expected, that is not the big story.  

The bigger story is the profit squeeze that the Mobile sector is facing. Take for example AT&T which is considered the bellweather for this sector. As I mentioned earlier, its revenue grew impressively. However, it had to subsidize the iPhones heavily, to the tune of $900 million in the quarter which amounts to a 10¢ reduction in its earnings per share. Clearly, AT&T has to subsidize the iPhones to stay competitive with RIM Blackberry, T-Mobile’s G1 and Microsoft Windows Mobile based phones with various carriers including AT&T. However, it is going to get worse going forward as consumers reduce their spending and shun expensive plans. There is a danger that consumers might shun smartphones all together. As Sanford C. Bernstein analyst Craig Moffett said to BusinessWeek:

you wonder whether the iPhone runs any risk of tilting from being the next cool gadget to suddenly being a symbol of excess.

I have a feeling that not just iPhones, but other smartphones will end up looking like “symbol of excess”. If that happens, RIM will probably be affected the most. Unfortunately for RIM, its Blackberry Storm and Blackberry Bold launches are coming in the first quarter after the major financial crisis and as US heads into a recession. Whether RIM will see the same bounce in sales as Apple did, remains to be seen.

All carriers will see further worsening of their ARPU during Q4 2008, according to the IE Market Research Corp.’s 4Q 2008 United States Mobile Operator Forecast, 2008 – 2010 report. In Q208, the ARPU declined by 1.7% across all carriers. However, Sprint and T-Mobile will be more adversely affected as it takes them longer to get a return on their their investments in WiMax and 3G respectively.

Nokia E72 headed for AT&T

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The new Nokia E72 which we recently saw in a leaked video is headed exclusively to AT&T with Feature Pack 2, according to Boy Genius Report. Earlier reports had the E72 mixed up with the E63. However, BGR has confirmed that they are two different handsets and E72 is indeed the next version of the E71, though not much is known about the E63 yet. Also, for those of you who did not get a chance to see the earlier video before it was pulled down, hereis one from BGR.

Written by dvdand

September 23, 2008 at 7:09 am

Posted in AT&T, Handsets, Nokia

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Gartner: Worldwide sales of smartphones grew 15.7%

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Gartner, today followed up with a press release reporting that the smartphones sales grew 15.7% in Q2 2008 over Q2, 2007. This amounts to 32.2m units sold in Q2. This is pretty much in line with what other research companies have recently reported and also what Nokia said in its forecast for Q3. Here is the breakup of sales according to Gartner:




2Q08 Market Share (%)



2Q07 Market Share (%)

2Q08- 2Q07 Growth (%)







Research In Motion




































What is interesting is that Samsung and LG do not make it on this list considering that they are 2nd and 3rd mobile phone makers worldwide.

Written by dvdand

September 8, 2008 at 12:01 pm