Smartphones out-shipped feature-phones last quarter

Last month we shared with you guys IDC’s prediction for last quarter that smartphones’ increasing popularity in the market will result to a groundbreaking overturn of it out-shipping feature phones for the first time in history. Well, the research firm was spot on their hunch as seen on their recent research result.

There’s a 4% year-over-year growth in the global mobile phone market, with manufacturer shipping a total of 418.6 million units last quarter. But what’s astonishing in IDC’s recent findings is that more than half (51.6% to be exact) of the phones sold last quarter are smartphones which equates to 216.2 million units.

smartphones

According to Kevin Restivo, IDC Senior Research Analyst, the reason for the increase in smartphone sales is primarily due to the added feature that smartphones have to offer compared to feature phones. Another factor for this occurrence, in our opinion, is the continuous decrease in prices of entry-level and some mid-range smartphones in the market. This price drop makes it difficult for feature phones to go head to head with budget smartphones in the market.

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IDC: Smartphones will outship feature phones this year

Based on their recent research, International Data Corporation (IDC) has reasons to believe that smartphones will overtake the feature phone (aka dumbphones) shipments for the first time this year and will continue to do so for the next succeeding years.

smartphones

IDC is looking at a number of factors that may affect the overturn including the affordability and wide range of smartphones options especially Android handsets and the mass adoption of 4G wireless networks. And although the research firm believes that the majority of the volume will still come from established markets such as China, US and UK, IDC predicts that emerging markets like Brazil and India will also play a key role in the significant smartphone growth.

“Even as China starts to mature, there remains enormous untapped potential in other emerging markets like India, where we expect less than half of all phones shipped there to be smartphones by 2017, and yet it will weigh in as the world’s third largest market,” said Melissa Chau Senior Research Manager, IDC Asia/Pacific. Bruno Freitas, Consumer Devices Research Manager, IDC Brazil adds by saying, “The smartphone tide is turning in Brazil though, as wireless service providers and the government have laid the groundwork for a strong smartphone foundation that mobile phone manufacturers can build upon.”

It’s also important to note that the the new players in platform wars such as Firefox OS and Tizen, along with its respective low-cost handsets, will also provide an additional traction for the global smartphone success.

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Apple continues to dominate the tablet industry

Before the end of January, IDC released the result of their research on the tablet market. As the firm have predicted, tablet shipment continued to soar as more and more people and companies adapt to the post-PC revolution. Not so surprisingly, Apple remains the dominating force in the industry, continuing to pull away from its competitors.

Apple had a very solid outing last year, owning 43.6% of the global tablet market with shipments reaching almost 23 million. Although iPad shipment have increased by little over 48-percent from the prior year, their total market share is down by 8.1%. A chunk of this market loss is claimed by their arch-rival, Samsung.

IDC Table

From a 2.2 million outing on 2011, Sammy’s tablet shipment has sky-rocketed to 7.9 million a year after. This stellar performance boosted the South Korean company to the far second place, taking 15.1% of the global market share. But as outstanding as it may sound, they are not the company that had the biggest traction last year. That title goes to ASUS which is in the 4th place.

The Taiwanese company couldn’t be happier with the way 2012 has turned out for them, garnering a year-over-year growth of more than 400%. They still have a long way to go to reach the top, but they are well underway if they can keep this level of performance.

asus tf300

Amazon, which is in the third place in the ranking, also saw some improvements on their total shipments. However, their market share is a bit on the downside, dropping 4.4% compared to their 2011 performance. Well at least the online retail has something to celebrate, unlike the company behind Nook Tablet who we think would like a do-over of 2012.

Barnes and Noble is slowly losing its grip (if it had one) on the tablet market with performance on the down trend. The company slips one place to the fifth spot, behind the biggest gainer of the year, ASUS.

2012 was a big year for tablet manufacturers. Demands for tablets soared, resulting to a substantial 75% increase in shipment from the previous year. Like most people, we also think that things will just get better moving forward as we embrace the new phase in computing. We can also expect Microsoft to play a significant role in the overall growth of the tablet industry, especially now that more and more slates are running on their touch-optimized OS.

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