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Technology Stocks : Semi Equipment Analysis
SOXX 306.28-1.0%Dec 4 4:00 PM EST

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To: Sam who wrote (61129)8/18/2013 9:25:54 PM
From: Sam1 Recommendation

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Donald Wennerstrom

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Wow, smartphone sales really slowed down in Q2, I see what analysts like Gerra are talking about! Who can live with 46.5% YoY growth?!

Sarcasm alert.

Smartphone sales grew 46.5% in 2Q13, says Gartner
Press release, August 15; Joseph Tsai, DIGITIMES [Thursday 15 August 2013]

Worldwide mobile phone sales to end users totaled 435 million units in the second quarter of 2013, an increase of 3.6% from the same period in 2012, according to Gartner. Worldwide smartphone sales to end users reached 225 million units, up 46.5% from the second quarter of 2012. Sales of feature phones to end users totaled 210 million units and declined 21% on year.

"Smartphones accounted for 51.8% of mobile phone sales in the second quarter of 2013, resulting in smartphone sales surpassing feature phone sales for the first time," said Anshul Gupta, principal research analyst at Gartner. Asia Pacific, Latin America and Eastern Europe exhibited the highest smartphone growth rates of 74.1%, 55.7% and 31.6% respectively, as smartphone sales grew in all regions.

Samsung maintained the number one position in the global smartphone market, as its share of smartphone sales reached 31.7%, up from 29.7% in the second quarter of 2012. Apple's smartphone sales reached 32 million units in the second quarter of 2013, up 10.2% from a year ago.

In the smartphone operating system (OS) market, Microsoft took over BlackBerry for the first time, taking the number three spot with 3.3% market share in the second quarter of 2013. "While Microsoft has managed to increase share and volume in the quarter, Microsoft should continue to focus on growing interest from app developers to help grow its appeal among users," said Gupta. Android continued to increase its lead, garnering 79% of the market in the second quarter.

Samsung remained in the number one position in the overall mobile phone market, with sales to end users growing 19% in the second quarter of 2013. "We see demand in the premium smartphone market come mainly from the lower end of this segment in the US$400-and-below ASP mark. It will be critical for Samsung to step up its game in the mid-tier and also be more aggressive in emerging markets. Innovation cannot be limited to the high end," said Gupta.

Slowing demand of feature phone sales across many markets worldwide, and fierce competition in the smartphone segment, affected Nokia's mobile phone sales in the second quarter of 2013. Nokia's mobile phone sales totaled 61 million units, down from 83 million units a year ago. Nokia's Lumia sales grew 112.7% in the second quarter of 2013 thanks to its expanded Lumia portfolio, which now include Lumia 520 and Lumia 720. "With the recent announcement of the Lumia 1020, Nokia has built a wide portfolio of devices at multiple price points, which should boost Lumia sales in the second half of 2013," said Gupta. "However, Nokia is facing tough competition from Android devices, especially from regional and China-based manufacturers which are more aggressive in terms of price points."

While sales continued to grow, the company faced a significant drop in the ASP of its smartphones. Despite the iPhone 5 being the most popular model, its ASP declined to the lowest figure registered by Apple since the iPhone's launch in 2007. The ASP reduction is due to strong sales of the iPhone 4, which is sold at a strongly discounted price. "While Apple's ASP demonstrates the need for a new flagship model, it is risky for Apple to introduce a new lower-priced model too," said Gupta. "Although the possible new lower-priced device may be priced similarly to the iPhone 4 at US$300 to US$400, the potential for cannibalization will be much greater than what is seen today with the iPhone 4. Despite being seen as the less expensive sibling of the flagship product, it would represent a new device with the hype of the marketing associated with it."

Lenovo's mobile phone sales grew 60.6% to reach 11 million units in the second quarter of 2013. Lenovo's quarter performance was bolstered by smartphone sales. Its smartphone sales grew 144% on year and helped it rise to the number four spot in the worldwide smartphone market for the first time. Lenovo continues to rely heavily on its home market in China, which represents more than 95% of its sales. It remains challenging for Lenovo to expand outside China as it has to strengthen its direct channel as well as its relationships with communications service providers.

"With second quarter of 2013 sales broadly on track, we see little need to adjust our expectations for worldwide mobile phone sales forecast to total 1.82 billion units this year. Flagship devices brought to market in time for the holidays, and the continued price reduction of smartphones will drive consumer adoption in the second half of the year," said Gupta.

Gartner: Worldwide smartphone sales to end users by vendor, 2Q13 (k units)

Company

2Q13 shipments

2Q13 market share

2Q12 shipments

2Q12 market share

Samsung

71,380.9

31.7%

45,603.8

29.7%

Apple

31,899.7

14.2%

28,935

18.8%

LG

11,473

5.1%

5,827.8

3.8%

Lenovo

10,671.4

4.7%

4,370.9

2.8%

ZTE

9,687.6

4.3%

6,331.4

4.1%

Others

90,213.6

40%

62,704

40.8%

Total

225,326.2

100%

153,772.9

100%

Source: Gartner, compiled by Digitimes, August 2013

Gartner: Worldwide smartphone sales to end users by OS, 2Q13 (k units)

OS

2Q13 shipments

2Q13 market share

2Q12 shipments

2Q12 market share

Android

177,898.2

79%

98,664

64.2%

iOS

31,899.7

14.2%

28,935

18.8%

Microsoft

7,407.6

3.3%

4,039.1

2.6%

BlackBerry

6,180

2.7%

7,991.2

5.2%

Bada

838.2

0.4%

4,208.8

2.7%

Symbian

630.8

0.3%

9,071.5

5.9%

Others

471.7

0.2%

863.3

0.6%

Total

225,326.2

100%

153,772.9

100%

Source: Gartner, compiled by Digitimes, August 2013

Gartner: Worldwide mobile phone sales to end users by vendor, 2Q13 (k units)

Company

2Q13 shipments

2Q13 market share

2Q12 shipments

2Q12 market share

Samsung

107,526

24.7%

90,432.1

21.5%

Nokia

60,953.7

14%

83,420.1

19.9%

Apple

31,899.7

7.3%

28,935

6.9%

LG Electronics

17,016.4

3.9%

14,345.4

3.4%

ZTE

15,280.7

3.5%

17,198.2

4.1%

Huawei

11,275.1

2.6%

10,894.2

2.6%

Lenovo

10,954.8

2.5%

6,821.7

1.6%

TCL

10,134.3

2.3%

9,355.7

2.2%

Sony Mobile

9,504.7

2.2%

7,346.8

1.7%

Yulong

7,911.5

1.8%

4,016.2

1%

Others

152,701.5

35.1%

147,354.6

35.1%

Total

435,158.4

100%

420,120

100%

Source: Gartner, compiled by Digitimes, August 2013

digitimes.com
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