According to the research firm Gartner, the worldwide sales of mobile phones reached 435 million units in the second quarter of 2013 registering a growth of 3.6 per cent over the corresponding quarter in 2012.
Smartphones accounted for 51.8 per cent of mobile phone sales in the second quarter of 2013, resulting in smartphone sales surpassing feature phone sales for the first time. At the end of the second quarter of 2013, the global sales of smartphones and feature phones stood at 225 million units and 210 million units, respectively. Markets such as Asia/Pacific, Latin America and Eastern Europe reported the highest smartphone growth rates of 74.1 per cent, 55.7 per cent and 31.6 percent respectively.
For the period under review, Samsung has been ranked as the leading smartphone manufacturer followed by Apple and Microsoft. Anshul Gupta, principal research analyst, Gartner, says, ?The demand in the premium smartphone market will be driven by the lower-end smartphone segments ie devices priced below $400. It will be important for Samsung to step up its game in the mid-tier segment and also be more aggressive in emerging markets. Innovation cannot be limited to the high-end smartphones alone.?
Gartner states that the declining demand for feature phone 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 stood at 61 million units at the end of the second quarter of 2013. The sale of Nokia?s Lumia series of smartphone registered a growth of 112.7 per cent with the launch of Lumia 520 and Lumia 720. Gupta, says, ?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. However, Nokia is facing tough competition from Android-based devices, especially from regional and Chinese manufacturers which are more aggressive in pricing their products.?
The research firm points out that while Apple registered a growth in sales, the company witnessed a significant decline in the average selling price (ASP) of its smartphones. Despite the iPhone 5 being the most popular model, Apple?s ASP declined to its lowest since iPhone?s launch in 2007. The company?s ASP declined due to strong sales of the iPhone 4, which the company is selling at a discounted price.
Gupta explains, ?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. Although the possible new lower-priced device may be priced similarly to the iPhone 4 at $300 to $400, the potential for cannibalisation 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.?
According to Gartner, Lenovo?s mobile phone sales stood at 11 million units in the second quarter of 2013. Lenovo?s performance in the second quarter of 2013 was boosted by an increase in the smartphone sales. Lenovo continues to rely heavily on its home market in China, which represents more than 95 per cent of its total smartphone sales. Expanding its reach beyond China continues to be a challenge for Lenovo as this requires significant investments for building relationships with global service providers and setting-up distribution channels.
Going forward, Gartner forecasts global mobile phone sales to reach 1.82 billion units at the end of the year 2013. The launch of flagship products and the reduction in the smartphone prices will be the key growth drivers for the mobile phone market in the second half of 2013.
