Tatiana Kashyrskaia
Now we can definitely say that smartphones have revolutionized the global market of mobile devices as well as our lives. They give us an opportunity to lead a mobile live, staying online wherever we are.
Apart from making phone calls and sending SMSs, now people have an opportunity to browse the web, play hi-quality games, enjoy a wide range of various apps for different purposes like business, sports, health etc.
What interest can the global market of smartphones present to investors? What companies are the frontrunners and outsiders of this market?
The frontrunners:
Obviously, the market of smartphones offers a wide range of models even for extremely sophisticated users. Conventionally, smartphones can be classified by brands, OS and other criteria. These are today’s leading smartphone brands:
- Nokia;
- Samsung Electronics;
- Google;
- Apple;
- Microsoft.
We must confess that Google has revolutionized the market with the help of its Android operating system, outpacing its major rival – Nokia’s Symbian OS. At this point Apple’s iOS is its major rival. However, due to the much higher price of iPhone4/4S, iOS is not expected to become the leader in the global market of smartphone operating systems.
Windows Phone 7 is another “child” delivered by Microsoft to the market. However, it yields to its rivals in multiple characteristics.
Samsung Electronics’s Bada hasn’t found market acceptance so far, probably due to a number of major defects.
As for the world’s major smartphone manufacturers, these are Nokia, Samsung, HTC, Apple and LG Electronics.
The sales dynamics and market share:
The analytic team of quoted Gartner to show you the sales stats for Q3 2011:
There are some major changes if to compare these data to those of Q3 2010:
Android. The quantitative dynamics show that Android-powered smartphones dominate the market. Their market share increased from 17% in Q3 2010 up to 52.5% in Q3 2011.
Bada. This is the outsider – 2.2% in Q3 2011 against 1.1% a year ago.
Symbian. It was the leader in Q3 2010 (36%) but yielded its leadership to Android, preserving 25% of the market share.
In terms of sales dynamics:
Nokia. It remains the frontrunner despite a decline from 28% in Q32010 down to 23.9% in Q3 2011.
Samsung. The company is the runner-up. Samsung consolidated its position from 17.2% in Q3 2010 up to 17.8% a year later, mostly due to powering its smartphones with Android, Bada and Windows Phone 7.
LG Electronics. The 3rd place belongs to LG and its variable products - Doubleplay and Optimus Black.
Apple also consolidated its position in the market (+0.7%) mostly due to iPhone 4S.
Smartphone market prospects:
The analytic team of bets on Android. The operating system will keep conquering the market as more and more smartphones will be powered by Android. Google will definitely keep improving its child, making new updates and versions of it OS.
Some smartphone manufacturers are not in a hurry to abandon Symbian but are going to gradually switch to android. For example, ZTE, a Chinese manufacturer, bets on Android and Windows Phone 7.
According to the Department of Portfolio Investment of , Google’s stock (GOOG) is expected to gain $10-11 per share as during the last 3 quarters the company showed stable positive sales dynamics.
Technically, Google’s stock is currently being traded around a major level of resistance ($630). Once the price consolidates above the level, it will get a change to rally further up to $700-$730. A decline is probable if the economic situation in the USA deteriorates.
Other forecasts. Eugene Olkhovsky, a Canadian expert for , assumes in Q4 2011 the market share will change in favor of Windows Phone 7 due to such products as Mango and Lumia, as well as due to the forthcoming start of Microsoft and Nokia’s joint marketing campaign. Next year Windows Phone 7 is expected to conquer some 10% of the market share. In longer-term perspective, the experts says Android will remain the leader, with Windows Phone 7 and iOS being number 2 and 3 correspondingly.
As for hardware innovation, the analytic team of Nord FX is sure that all major smartphone manufacturers have their own aces up their sleeves. Apple is working on iPhone 5 while Nokia is about to introduce its latest product called Lumia. Samsung is working on Samsung Galaxy S 3.
Market Leader and would appreciate if you could participate in a survey. Please, visit the Academy’s forum for traders and investors and answer the following question:
Will Android remain the frontrunner in the market of mobile OS?
Tatiana Kashyrskaia
