Global smartphone sales growth slows down in Q3: Samsung's first quarter on top, Apple's rare sequential iPhone loss
Gartner Says Sales of Mobile Devices Grew 5.6 Percent in Third Quarter of 2011; Smartphone Sales Increased 42 Percent
- Android OS Rose to Account for More Than 50 Percent of Smartphone SalesEgham, UK, November 15, 2011—
Worldwide sales of mobile devices totaled 440.5 million units in the third quarter of 2011, up 5.6 percent from the same period last year, according to Gartner, Inc. Non-smartphone devices performed well, driven by demand in emerging markets for low-cost devices from white-box manufacturers, and for dual-subscriber identity module (SIM) devices.
Sales into the channel reached 460 million units. Gartner analysts said this increase was because of inventory build-up in the channel partly because of the shipping of new devices late in the quarter but mostly to prepare the channel for the holiday season. Gartner expects most of the build-up to be sold by the first quarter of 2012.
"Our forecast for the end of the year remains broadly in line at a worldwide level as regions such as Asia/Pacific and the Middle East and Africa make up for weaker performance in the Western European market," said Annette Zimmermann, principal analyst at Gartner based in Munich.
Smartphone sales to end users reached 115 million units in the third quarter of 2011, up 42 percent from the third quarter of 2010. Sequentially, smartphone sales slowed to 7 percent growth from the second quarter of 2011 to the third quarter of 2011. Smartphone sales accounted for 26 percent of all mobile phone sales, growing only marginally from 25 percent in the previous quarter.
"Strong smartphone growth in China and Russia helped increase overall volumes in the quarter, but demand for smartphones stalled in advanced markets such as Western Europe and the U.S. as many users waited for new flagship devices featuring new versions of the key operating systems," said Roberta Cozza, principal research analyst at Gartner. "Slowdowns also occurred in Latin America and the Middle East and Africa."
"Some consumers held off upgrading in the third quarter because they were waiting for promotions on other new high-end models that were launched in the run-up to the fourth quarter holiday season," Ms. Cozza said. "Other consumers were waiting for a rumored new iPhone and associated price cuts on older iPhone models; this affected U.S. sales particularly."
Despite a drop in market share, Nokia continued to be the worldwide leader in mobile device sales as it accounted for 23.9 percent of global sales (see Table 1). The second quarter of 2011 was the low point for Nokia, and the third quarter brought signs of improvement. Dual-SIM phones in particular, and feature phones generally, maintained Nokia's momentum in emerging markets. Heavy marketing from both Nokia and Microsoft to push the new Lumia devices should bring more improvement in the fourth quarter of 2011. However, a true turnaround won't take place until the second half of 2012.
Worldwide Mobile Device Sales to End Users by Vendor in 3Q11 (Thousands of Units)
3Q11 Market Share (%)
3Q10 Market Share (%)
Research In Motion
Source: Gartner (November 2011)
Samsung became the No. 1 smartphone manufacturer worldwide as sales to end users tripled year over year to reach 24 million; sell in was high as the channel built inventory. Samsung was the No. 1 smartphone manufacturer for the first time, ahead of Nokia in Western Europe and Asia. Gartner attributes this to the strong performance of Samsung's Galaxy smartphones, which now cover a broad range of prices, and a weaker competitive market. Analysts expect more competition in the fourth quarter of 2011, not least because sales of the iPhone 4S, 4 and 3GS will capture share from Android manufacturers.
Apple shipped 17 million iPhones, an annual increase of 21 percent, but down nearly 3 million units from the second quarter of 2011 because of Apple's new device announcement in October. Gartner believes Apple will bounce back in the fourth quarter because of its strongest ever preorders for the iPhone 4S in the first weekend after its announcement. Markets such as Brazil, Mexico, Russia and China are becoming more important to Apple, representing 16 percent of overall sales and showing that the iPhone has a place in emerging markets, especially now that the 3GS and 4 have received price cuts.
The Android OS accounted for 52.5 percent of smartphone sales to end users in the third quarter of 2011 (see Table 2), more than doubling its market share from the third quarter of 2010.
"Android benefited from more mass-market offerings, a weaker competitive environment and the lack of exciting new products on alternative operating systems such as Windows Phone 7 and RIM," Ms. Cozza said. "Apple's iOS market share suffered from delayed purchases as consumers waited for the new iPhone. Continued pressure is impacting RIM's performance, and its smartphone share reached its lowest point so far in the U.S. market, where it dropped to 10 percent."
Worldwide Smartphone Sales to End Users by Operating System in 3Q11 (Thousands of Units)
3Q11 Market Share (%)
3Q10 Market Share (%)
Research In Motion
Source: Gartner (November 2011)
4. ayephoner (Posts: 837; Member since: 09 Jun 2009)
there are no excuses. there are reasons.
the smartphone market is not constant like some other markets. things happen in waves based upon device release. as the article states, samsung had the top of the line device for the quarter, while apple was selling a year or more old device.
in q4, apple will be selling their brand new device vs. a somewhat dated sgsII (and some boost from the nexus), but apple will surely resurge in q4. samsung will then chip away as it will launch new phones every quarter, while apple wont see another new phone until mid to late \'12.
7. remixfa (Posts: 13935; Member since: 19 Dec 2008)
samsung wasnt selling their top of the line phone in their biggest market in Q3, which was the SGS2 in America. they lost a lot of sales because of that.
I expect Apple to temporarily take the crown back in Q4, but not by a big margin as both the i4s and the SGS2 are on sale everywhere.
8. arcq12 (Posts: 733; Member since: 13 Oct 2011)
I believe i4s will outsell the SGS2 Q4 this year by a huge margin. Then will go back to business as usual by early next year.
67. cnwwyo (Posts: 126; Member since: 26 May 2011)
these commi bastards sure censored this awfull quick! and for what, speaking the truth? liberal cocksuckers
3. c.hack (Posts: 514; Member since: 09 Dec 2009)
That's right. Go Asian companies. gogogo. To hell with the USA.
Oh, wait. Oops, my job is in the USA. FTW
5. remixfa (Posts: 13935; Member since: 19 Dec 2008)
samsung employs more americans than apple does. where the head quarters is, and where the jobs are are not always the same thing. Apple is also notorious for hiding its money overseas to avoid paying taxes. Thats one of the reason SJ got a special meeting with Obama.. to make suggestions on how to lower taxes so businesses bring their money back (to the tune of trillions and trillions).
So in that light, samsung is more american than apple.
35. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
You just made all that up remix. Just like you were completely wrong about microsoft's shares in Apple. Where do you get this Samsung employees more Americans then Apple? Apple employees probably close to 30,000 Americans. I posted an article where just their retail employees are close to 20,000. They're building a 12,000 employee campus in Cupertino in addition to their existing campus.
Do you know Google has billions hidden overseas to avoid taxes? That's ok with you though cause its google right?
45. iamcc (Posts: 1319; Member since: 07 Oct 2011)
Taco, where did you read that Apple employs close to 30,000 Americans?
They have roughly 48,000 employees entirely as of 2010 so I would be very interested to see how you found out how many of those are American.
52. remixfa (Posts: 13935; Member since: 19 Dec 2008)
samsung has its chip plants in texas if i remember correctly. plus all its retail people, its tech people, its sales people, on and on and on. we had this fight already taco
and because it can hold 12,000 people, doesn't mean there is 12,000 people in it.
75. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
The ownage continues
"The company has raised its employee numbers by over a third from last year, it had 46,600 full-time employees as of September 25, up from 34,300 a year ago and 28,000 in 2008.
Most of that increase came in the retail segment, where Apple now has 26,500 employees, 10,000 more than in 2009. Apple has 317 retail stores, up from 273 a year ago."
I'm going to help you out here. The majority of Apple's retail stores are in the US. Also Foxconn factory workers are not Apple employees. They work for Foxconn and not for Apple. Out of these 46,000 employees the vast majority work in the US. Retail staff, engineers, corporate employees. Not to mention staff like janitor, cafeteria workers etc. Do you ever get tired of being wrong? You have this outdated talk track you repeat over and over without any care for what the actual facts are.
76. remixfa (Posts: 13935; Member since: 19 Dec 2008)
who exactly did you prove wrong? iamcc said they had about 48000 employees, and i just made mention of the difference between capability of an office and actual staff.
i realize you have mental problems, but u shouldnt argue with yourself.. lol.
81. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
"and because it can hold 12,000 people, doesn't mean there is 12,000 people in it."
"samsung employs more americans than apple does. where the head quarters is, and where the jobs are are not always the same thing."
You first comments insinuates Apple doesn't have 12,000 employees. Then your second comment states as a "fact" that Samsung employees more Americans. Can you please provide us the number of Samsung workers in the US?
88. remixfa (Posts: 13935; Member since: 19 Dec 2008)
you really are mental taco. i was just talking about their headquarters you troll. Capacity is not the same as employed. That was the point.
A 50,000 seat stadium doesnt have its seats filled at all times. Oi. I didnt make any insinuation as to 12000 people for their total employ numbers.
What planet do you live on again? Can taco go back on vacation please? It was so peaceful without him.
92. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Remix you stated as fact that Samsung employees more people in the US. Where are you getting this info?
82. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
They're now at 63,000
Brought to light by a recent filing by Apple with the U.S. Securities and Exchange Commission, the Cupertino, California-based outfit now employees just north of 63,000 full-time employees. One year ago, that number was just under 50,000. In other words, Apple's work force has popped by 28% in less than one year.
68. cnwwyo (Posts: 126; Member since: 26 May 2011)
google earned their money fair and square. it's people like u with your hand out that is the problem. work for what u want, or move to europe
61. cncrim (Posts: 518; Member since: 15 Aug 2011)
Look on the back phone do you see anything is make in USA anymore beside awsome mind of design software and the case.
6. remixfa (Posts: 13935; Member since: 19 Dec 2008)
personally, i love the "they were waiting for the iphone5" arguement. Because it holds no water. Americans were also waiting for the SGS2, which is samsung's biggest market for high end phones. They weren't selling their hugely successful flagship phone in America in Q3. And they still won.
Android is over 50% by itself, thats a milestone to be proud of.
iOS is 3rd behind symbian? woops.
yea.. cuz u know, adobe sure does care about the guy in 3rd's opinion more than the guy in a distant 1st's opinion.
15. ayephoner (Posts: 837; Member since: 09 Jun 2009)
first, sprint was selling the sgsII for half a month in Q3. i know, not long, but phones sell the most at launch, so there are some numbers there.
second, they were selling it in many, many markets world wide.
third, its not as if samsung only launches one smartphone per year (or even one flagship smartphone per year). they have launch after launch after launch.
fourth, samsung\'s frequent launch schedule makes the pre-flagship sales decrease much less significant than apple\'s.
i do agree with you that samsung is gaining market share from apple, but it is happening much more slowly than the picture you are painting.
16. taz89 (Posts: 2014; Member since: 03 May 2011)
Samsung only had 1 flagship device in 2011 which was the gs2,they just had different varients for regions and carriers.
59. htcisthebest (Posts: 8; Member since: 15 Nov 2011)
Samsung Galaxy Note is also Samsung's flagship device in 2011, though it's not in the US yet.
89. remixfa (Posts: 13935; Member since: 19 Dec 2008)
its not a flagship, its a niche. the SGS2 is the flagship until the SGS3 or something better launches.
Thought the note is pretty darn nifty.
17. remixfa (Posts: 13935; Member since: 19 Dec 2008)
it was like a week for the SGS2 on sprint. im sure that skewed numbers quite a bit... or not.. lol
second, they sell as much in america as they do in the rest of the world combined for high end smartphones.. so thats literally half their sales market.
third, they may launch more than 1 phone ,but the bulk of their smartphone sales are based off SGS1 and SGS2 by far more than any other device. That is different how from the i4/3gs sales?? oh.. yea, the SGS1 and SGS2 are MORE EXPENSIVE than the i4/3gs at the same time.
fourth... huh? it was a huge sales decrease. instead of waiting for what the phone "could have been" like the i5, they were waiting for the monster they knew existed. The SGS2 is an anomole, ive said that before. Never before have I witnessed soooo many customers holding off until the thing came out. For 6 months or so from the Korean launch to the American launch. That has never happened in the Android world since there is so many choices. Thats normally an iphone thing.
glad you agree, but im not sure i painted a picture of quick growth. its growth, but right now its a back n forth duel since they are pretty neck n neck. My point was people claim apple slid to second because people were waiting for the i5 announcement.. well there was millions of people waiting for the SGS2 in america that couldnt get one until Q4. I think apple will win the 4th quarter, but not by much since the SGS2 is finally on sale in the US to help bolster samsung's #s. If they had launched the G-Nexus sooner rather than later, that would have made the quarter even closer, though it only helps my Q1 2012 bet with taco by them waiting.
And it will probably be the last time Apple wins a quarter until the i5 launch.
24. rendHELL (Posts: 304; Member since: 09 Nov 2011)
i wonder why the tacos has not been posting yet in this thread?
could they be silent cause they cant think of something to say to android fans?
29. gallitoking (Posts: 4690; Member since: 17 May 2011)
wrong again... The us were waiting for the Nexus Prime.. remember?... the SGSII took to long and people moved on.... and Q4 will be Apple...
33. remixfa (Posts: 13935; Member since: 19 Dec 2008)
gallito, i work in the industry. the SGS2 sells like wildfire. people have been waiting for that phone for a long time.
40. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Maybe on T Mobile because customers don't have the iPhone option. iPhone is the top selling phone on all other carriers.
It's really obvious your hatred for Apple. You worked for VZW where you were trained to be anti Apple and now you work for T Mo where it's the same thing. Quit being a follower and think for yourself.
53. remixfa (Posts: 13935; Member since: 19 Dec 2008)
t-mobile has a very open attitude twards iphones. they have their own iphone call support center since unlocked iphones are extremely common.
for years, people asked "when are you getting the iphone". almost no one asks that anymore. until the SGS2 was released, thats all i was asked about. some people come in asking abuot the nexus or the latest HTC.. very rarely does anyone ask about an iphone anymore.. and when they do its normally for the iphone5 or iphone4g. kinda silly.
lol, taco, if i was a blind follower, i would agree with all the stupid stuff you say. durka
42. gallitoking (Posts: 4690; Member since: 17 May 2011)
well I work in sales and I tell you is just another phone... care to prove me wrong.. show me the sales of the SGSII in all carriers.... so we can compare....
46. robinrisk (unregistered)
gallito, do you live in the states?
I ask because gallito is a spanish word and all that.
62. remixfa (Posts: 13935; Member since: 19 Dec 2008)
and which carrier do you work for gallito? last i remember, you dont work IN the industry.. working in A industry is not the same as THIS industry.. lol
63. gallitoking (Posts: 4690; Member since: 17 May 2011)
no carrier but I have insight info.... and I know when phone sells...
77. remixfa (Posts: 13935; Member since: 19 Dec 2008)
so, then your "insight" means nothing. you are starting to remind me of Peter and his "inside sources" that were ALWAYS WRONG.
i AM the inside source. Primary source of info, not tertiary.
84. gallitoking (Posts: 4690; Member since: 17 May 2011)
Typical remix... when ask for proof... he very smart changes directions of the conversation.... i will ask again... and then make fun all you want... show the sales figure of the SGSII for your beloved T-mobile... and will even say... please
90. remixfa (Posts: 13935; Member since: 19 Dec 2008)
gallito, go find me release hard sales numbers by the carrier for phones.. they dont exist.
Thats why I always start "in my experience"... "in my store"... "what i've seen in the industry".. Go ask a dude on sprint what sells the most after the initial i4s rush dies off. ask anyone on tmobile.. ask a sales rep after the nexus and razr launch what phones sell the most.
and remember.. proofread.
93. gallitoking (Posts: 4690; Member since: 17 May 2011)
they do exist... told you I have insight info.. but.. it doesnt matter since you spoke based on your 8 hour shift experience... ohhh you interview under paid T-Mo employees which they will tell you innacurate information, because they are not there from openning to close... hmmmm so this are your source of information.... hmmmm fail.. big time...
97. remixfa (Posts: 13935; Member since: 19 Dec 2008)
are you this big of an idiot in real life, or are you just trying to impress taco? its amazing how much more you troll when he is here compared to when his is on a forced vacation.
37. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
That holds no water? Are you serious? People that knew a new iPhone was coming out in a month wouldn't hold off? Come on get real. SGS 2 was available all over the world while there was no new iPhone yet.
Can you take the blinders off and stop being so biased and anti Apple.
54. remixfa (Posts: 13935; Member since: 19 Dec 2008)
im sorry, you have me confused with you. can you take your blinders off and quit assuming that the world revolves around apple.
a fact is a fact, jack.
9. Jericho (Posts: 302; Member since: 12 Nov 2011)
I live in asia pakistan and here people dont even know what android is they just buy phone which are popular or if you have an iphone then you have the best phone.
10. arcq12 (Posts: 733; Member since: 13 Oct 2011)
if that\'s the case then I feel sorry for you guys.
11. HTCiscool (Posts: 449; Member since: 16 Jul 2011)
That's actually the case in a lot of places but is becoming less frequent.
26. Fayeznoor (Posts: 65; Member since: 15 Nov 2011)
uh boy, i live in pakistan too man and i see smartphone freenzy around me. HTC is quite popular here. dun know which pak ur talking about
12. abdane (Posts: 476; Member since: 07 Oct 2011)
im keep loving Samsung more and more everyday ! ^_^ heck, even symbian is more than iOS ! XD
20. protozeloz (Posts: 5378; Member since: 16 Sep 2010)
not really for a reason Symbian is dead
25. rendHELL (Posts: 304; Member since: 09 Nov 2011)
symbian is not yet that dead because it's still used in most countries that does not need apple or android.
30. gallitoking (Posts: 4690; Member since: 17 May 2011)
according to remix...symbian is dead... or dying... go ask ...
34. remixfa (Posts: 13935; Member since: 19 Dec 2008)
nokia put symbian on hospice. for all purposes it is dying and will soon be dead. that doesnt mean its not going to sell right now. Its also prevalent in a lot of their lower end smartphones which sell by the hotcakes in markets like india, china, and africa.
kinda sad apple lost to an already announced-to-die system, huh?
36. rendHELL (Posts: 304; Member since: 09 Nov 2011)
Ok... I\'ll accept announce-to-die system, but they still work....
\"kinda sad apple lost to an already announced-to-die system, huh?\"
i like that sentence....
39. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
While you're on a trolling roll today remix. I guess you haven't learned any lesson either.
PA look at all the troll anti Apple comments here. Please do something about it.
55. remixfa (Posts: 13935; Member since: 19 Dec 2008)
taco, you are one funny funny hippocrit.
57. iamcc (Posts: 1319; Member since: 07 Oct 2011)
Just because people are anti-Apple doesn't make them a troll...
Trolling is what YOU do by purposefully starting arguments. Most of us just offer our opinion on what we like/dislike and you just happen to disagree with the majority of the people on this site.
66. gallitoking (Posts: 4690; Member since: 17 May 2011)
we all done that iamcc but even i am label as a troll for doing what you describe...... but you wont say anything about that.. is not in your best interest... huh... trolling ave. goes both ways...