Statista has compiled some information released by the IDC on the structure of the smartphone market in Q2 2014.
The data confirms that both Windows Phone and Android dominate in the low end of the market, with Windows Phone slightly more so, at 58.6% vs 61.4% of sales being less than $200 per handset.
24.9% of Windows Phone sales are in the mid-range ($200-$400), while only 13.7% are in the high end (above $400).
Q2 2014 was a difficult quarter for Windows Phone, with few product launches of note and a difficult transition from Nokia to Microsoft Mobile.
The results can be seen in the table above, with Windows Phone shipments as estimated by IDC dropping from 8.2 million in Q2 2013 to 7.4 million in Q2 2014, and Windows Phone dropping its market share from 3.4% to 2.5%.
The loss in market share was however even worse for iOS and Blackberry, with iOS losing 1.3% share and Blackberry 2.3%, in the face of intense competition by Android, who’s market share increased to 84.7%.
While some publications are still (strangely) talking about a duopoly, it seems pretty clear Android is heading to a monopoly, with even Apple seemingly unable or unwilling to do anything about it.
The good news however is that Windows Phone has gathered a bevy of new OEMs, and expect quite a number of product launches in Q3 2014, so while things are looking down, it may very well be the dark before the dawn.
The IDC reports that Q1 2014 was a quiet period in Australia, with a general reduction in the sales of all mobile phones, including a 20% drop in smartphone sales from the holiday quarter.
"The smartphone market in Q1 was subdued when the initial hype over Apple’s new iPhone 5s and 5c tapered off from last quarter. Consumers were also holding off their purchases in anticipation for the next wave of Galaxy S smartphones from Samsung, then rumoured to be in Q2," says IDC’s Senior Market Analyst, Amy Cheah.
Windows Phone itself was of course also between product waves, with no major new smartphones announced in Q1 (or frankly Q2) 2014 either.
The OS still managed to score 4.6% of the Australian smartphone market however, or 4% of the market including the ever shrinking feature phone market, which is now only 12% of the handset market there.
|2014 Q1 Smartphone Operating System Share Australia
Only a total of 1.8 million smartphones were sold in Australia in Q1 2014, with Windows Phone making up 82,000 units of this small market.
While an increase from 3% to 4.6% is a bigger than 50% growth in market share, we hope an invasion of new, cheaper handsets in Q3 2014 will result in more significant growth.
See the IDC’s report here.
The IDC has posted some regional smartphone tracker data for India in Q1 2014, and it holds some mixed news for Windows Phone fans in the region.
On the side of the good news, the Indian market continues to be the fastest growing smartphone market in Asia Pacific in Q1 2014, growing 186% YoY to 17.59 million vs only 31% in China for example.
Also on the good news side Nokia made its way back to the top 5 smartphone vendor list with about 4% market share after dropping out a few quarters ago.
The bad news is that Microsoft/Nokia needed the Nokia X in addition to low-end Lumia handsets to achieve their mere 700,000 unit sales.
After years of being rather optimistic about the future of Windows Phone the IDC has trimmed their forecast for Windows Phone growth.
The market research company now estimates 43.3 million Windows Phones will be sold in 2014, for a market share of 3.5%, increasing to 115.3 million in 2018, or 6.4% market share.
Conversely Android is expected to lose 2.6% market share, while iOS will lost 1.1% market share over the same period.
Blackberry will drop from 0.8 to 0.3% market share, according to their predictions.
They expect most of the growth to take place in low-cost markets like India, Indonesia, and Russia, and the average selling price of handsets to drop from, $335 in 2013 to $267 in 2018.
"Until recently, low cost has equalled poor quality in the smartphone space,” said Ryan Reith, Program Director with IDC’s Worldwide Quarterly Mobile Phone Tracker. "Given the competition at the high end, vendors like Motorola are trying to skate to where the puck is going by offering extremely affordable devices like the Moto E, which offer a ‘good enough’ experience that will suit the needs of many. This goes to show that components that were used 2-3 years back in high-end smartphones are still sufficient in many aspects, and ultimately will allow vendors to come to the table with viable low-cost solutions."
On Windows Phone they said:
Windows Phones are a clear minority OS, but in a massive survey of 50,000 participants in 25 countries, the IDC discovered that many of the Windows Phone buyers purchased their device specifically because they ran Windows Phone.
In the survey 40% of buyers felt their phone running Windows Phone was important to them, vs 32% for iOS or 37% of Android.
Of course other elements were also important, with battery life topping the list at 53%, with OS choice taking second place.
In a recent report by the IDC the market research company revealed that Android and Windows Phones were finding increased adoption amongst Western European governments.
75% of Western European government respondents were now looking beyond iOS and Blackberry, with Blackberry in particular on the wane, with only 27% of respondents currently using or planning to use devices running the OS.
While the free summary of the report does not provide specific information about Windows Phone, we know that enterprise and government has been a particular focus of Microsoft and Nokia over the last 18 months, with Nokia recently revealing it had more than 20% of the enterprise smartphone market in UK. The main factors driving this rise has been back end integration with Microsoft systems, security, price and ease of use.
Europe has been a particularly strong market for Windows Phone, including with consumers, with the OS hitting a higher than 10% market share in the EU5 countries for more than 6 months at the end of 2013 and early 2014. Hopefully a new wave of devices will once again boost Windows Phone share, which recently took a small dip, in the region once again.
See the full summary of the IDC report after the break.
Mobile payment company Fortumo has compiled a great infographic on the 24 countries where Windows Phone outsold the iPhone in December 2013.
They go on to correlate this with countries where carrier billing was available and prevalent. Carrier billing is a feature widely supported by Windows Phone, but not the iPhone, which means access to the app store is effectively reserved for the small proportion of the population with credit cards.
They also include Kantar numbers, showing the growth of Windows Phone and contrasting this with iOS.
See the full infographic after the break.
Blackberry is rapidly retreating from the world stage, with the OS estimated to have only 0.6% worldwide market share in Q4 2013 by the IDC.
There are some countries where the OS still reigned supreme until recently however such as Indonesia, where 17% of worldwide Blackberries was said to be in use early last year; the company’s biggest market.
Times they are a changing however, and with the rise of Android we have also seen Windows phone moving into the same arena, displacing the Canadian fruit phone.
The IDC has posted its worldwide mobile phone tracker today, and in it they predict Windows Phone will ship 47 million units in 2014, climbing to 121.8 million units in 2018.
This would represent a 29.5% compound annual growth rate, and make Windows Phone the fastest growing mobile phone OS for the period.
The IDC also predicts both iOS and Android will lose market share, hitting 14.4 and 76% respectively, while Windows Phone will double its share to 7%.
Most of the growth will happen in the low-end of the market, with the average selling price of smartphones dropping from $335 in 2013 to drop to $260 by 2018.
The IDC also expects the whole smartphone market to slow down, with North America, Europe and Japan being particularly hit.
Do our readers think IDC is being optimistic or pessimistic? Let us know below.
According to the IDC’s Mobile Tracker report Windows Phone has overtaken iOS in Brazil, and is now the second biggest selling OS in the region, with 6% market share.
They note Windows Phone has had four consecutive quarters of growth in the country, which is now the fourth largest smartphone market worldwide, with estimated sales of 47 million units in 2014.
"Microsoft works in partnership with Nokia, operators and retailers to accelerate Windows Phone’s participation in the local market, in addition to offering a complete portfolio of smartphones that meets the diverse needs and desires of consumers," says Celso Winik, general manager Microsoft Mobility Brazil. Winik also notes that Windows Phone is designed to work seamlessly with computers and tablets with Windows 8, and Xbox 360 consoles and Xbox One Furthermore, Windows Phone is fully integrated with the constellation Microsoft services – Skype, OneDrive , Office 365, Xbox Music among others. "It is possible, for example, start editing a document in Windows Phone 8 and continue at home on the computer."
According to the IDC in Q4 2013 Windows Phone outsold iOS in 10 markets worldwide. This number is down from more than 20 in Q3, and will likely increase once again in Q1 2014 when the iPhone’s surge quarter is over.
In their recent release on the state of smartphone shipments in 2013, the IDC has crowned Windows Phone as the fastest growing major smartphone operating system in 2013.
According to their market research Windows Phone grew shipments 90.9% between 2012 and 2013, from 17.5 million to 33.4 million handsets, to take 3.3% of the world market, up from 2.4%.
This compares to even Android only growing 58.7%, and iOS growing an anaemic 12.9%, dropping down to 15.2% market share.
The actual market grew 39.2% YoY to 1,009.6 million handset in 2013.
Quarterly numbers were not that rosy, but uncertainty in the market regarding Nokia’s future likely played a part.
Microsoft teased some stats yesterday, and today added some meat to those bones, claiming Microsoft has “seen record sales of Windows Phone this holiday worldwide.”
In a statement Microsoft said:
We’ve seen record sales of Windows Phone this holiday worldwide, nearly doubling phone sales during Christmas week (YOY). In the third quarter this year, according to IDC, Windows Phone reinforced its position as a top three smartphone operating system and was the fastest-growing platform among the leading operating systems with 156% year-over-year gain. Windows Phone is the #2 smartphone operating system in 14 markets, and shipped more units than iPhone in 24 markets in Q3. Our portfolio continues to expand: from award-winning flagship devices like the Nokia Lumia 928/1020/1520, to affordable new innovations like the Lumia 520/625/1320 and Huawei W1/W2.
As usual the claim is not hundred percent clear – If Microsoft means record sales for the holiday season they merely need to ship more than 6 million, but if they mean record sales for Windows Phone they need to exceed 9.5 million.
Microsoft did however reveal some solid data – the list of countries where it is outshipping the iPhone, and also the list of countries where it is the number 2 mobile operating system.