Shaping the Digital World together

Smartphone market and technologies

May 2012

Global Internet user

Global Internet user will double over next few years most will be mobile

Global smartphone vs. non-smartphone sales, 2010-2016

Informa Telecoms & Media estimates that smartphones sales will grow 53.5% in 2011, finishing the year on sales of 432 million and accounting for 34% of total. In 2016, Informa Telecoms & Media expects 870 million smartphones to be sold worldwide, equating to 54.1% of all handsets sold that year, the first year sales will have passed the 50% mark.
Note: excludes Samsungs platform Bada, Brew MP and non-certified android Source: Informa telecoms & media

Changes in Smartphone ownership 2010-2011

The smartphone penetration will exceed 75% in all the developed markets, such as Japan, South Korea, North America and Western Europe. In contrast, the number of smartphone users in many emerging markets, including Africa, India and parts of Latin America, will not exceed 25% of their total mobile subscribers.

Regional smartphone sales volume

Asia Pacific will overtake Europe in 2012 and become the largest region for smartphone sales. Japan and China were the largest single markets in the region for open OS-powered devices South Koreas market is growing rapidly having only just embraced smartphones beyond those based on its homegrown variants.

South Korea a almost pure Android market

South Korea will be the fastest-growing over the next two years, moving from 17% smartphone penetration in 2010 to 73% in 2012. Over the next five years, the number of smartphone users in South Korea is due to double from 22 million users at the end of 2011 to more than 44 million users at the end of 2016, which will be almost all (98%) of the countrys total mobile subscribers remarkable growth from less than 1 million scored in 2009.

Smartphone sales, by OS, 2010-2016

Source: Informa and Media

Smartphone market share by OS (global)

Android Expected to Dominate Smartphones Long Term
Android will dominate the smartphone market over the next five years (-2017)

The forecast share in 2017: Android 48 56%, iOS 22 - 27% Microsoft 8 11% Blackberry 5- 8%

Source: Gartner

Global share of Android models in market, by vendor

22 device manufacturers using the Android platform and by mid2011 nearly 300 device models had been launched globally The majority of chipset manufacturers, (e.g. RTOS) showing high interest in Android. The main hardware platform for Android is the ARM architecture. Qualcomm was the first chipset manufacturer to be able to integrate this software with its chipset. A number of others, including Broadcom and TI, have followed this trend.

Android Is Winning, But Android Phone Makers Aren't

Good news for Google is that its partners don't really have much choice. They can't get access to iOS. And Microsoft is as deeply in bed with Nokia as Google is about to be with Motorola. Big handset makers who don't want to be just another Android provider are going to start introducing their own flavors of Android for their phones. This is the risk of being open -- Google can lose control of its platform.

Todays challenge is with Android operating system

Majority of Android users (86.3%) are using an outdated version (gingerbread or below) of the software

.. & their OEMs (the implementation matters)

A conversation on Twitter between Natalia Luckyanova, co-founder of Imangi, and David Smith, an independent developer, March 2012.

Smart Labs research on various Android devices also shows device fragmentation issues

Android is suddenly in trouble

Clear developers message: Build on iOS first, Android second

Verizon CFO Fran Shammo says the company plans on putting its weight behind Windows Phones. AT&T is reportedly spending $150 million to market Windows Phones.

Developer project starts iOS vs. Android

Total new project starts (thousands)
16

12

25%

27%

27%
8

Developers don't want to develop on a fragmented platform. The uptake of Android 4.0 has been poor

37%
75%
4

73%

73%

63%

1Q11

2Q11 Android iOS

3Q11

4Q11

Google Play Store vs Apple App Store

Dec 2011: Google announced that the Android Market had passed its 10 billionth app download. Apple hit that mark in July 2011

Apple downloads and revenue per country

Interesting facts:
1. US accounts for 33% of revenues on the Appstore. 2. Japan 10% 3. UK 7% 50% of the App revenue in the AppStore is made with only 3 countries