Smartphone Growth to Accelerate in 2014, Led by Google, Microsoft, Nokia, and RIM

Strategic Insights -

Accelerating smartphone growth in 2014 is expected to reach 105% to 506 million units, compared to 246.9 million units in 2010, according to research firm iSuppli Corp. This growth will be fueled by new smartphones from large handheld device companies, such as Google Inc., Microsoft Corp., Nokia Corporation, and Research in Motion Ltd, as well as Apple Inc., which is expected to dominate the U.S. smartphone market with its new fourth-generation iPhone. The new iPhone will feature a higher resolution display, front-facing camera, and improved multitasking capabilities.

Key Takeaways:

  • Global smartphone shipments are expected to increase 105% to 506 million units in 2014 from 246.9 million expected in 2010, driven by 35.5% growth in smartphone unit shipments in 2010.
  • The smartphone unit shipment growth will be driven by new smartphones from companies like Google Inc., Microsoft Corp., Nokia Corporation, Research in Motion Ltd, and Apple Inc.
  • Apple's new fourth-generation iPhone is expected to further strengthen its position in the market, with features such as a higher resolution display, front-facing camera, and improved multitasking capabilities.
  • The new iPhone will be priced at $199, with the current iPhone 3GS expected to see a price cut to $99, which could drive higher demand for Apple's iPhones.
  • iPhone sales were 8.75 million during the second quarter of 2010, representing 131% unit growth over the year-ago quarter and the highest in the company's history.
  • iPhone sales represented approximately 40% of Apple's total revenue in the second quarter of 2010.
  • Apple's market share represents about 3% of the overall cell phone market, and ranked no. 6 according to iSuppli in the global cell phone market in the first quarter.
  • Wall Street expects Apple to sell a total of about 36 million iPhones in its fiscal year ending 2010, which is an 80% increase from over 20 million iPhones units sold in fiscal 2009.

Statistics:

  • Global smartphone shipments are expected to reach 506 million units in 2014, an increase of 105% from 246.9 million units in 2010.
  • Smartphone unit shipments grew 35.5% in 2010, driving the mobile phone market growth of 11.3%.
  • iPhone sales reached 8.75 million during the second quarter of 2010, representing a 131% increase over the year-ago quarter.
  • iPhone sales represented 40% of Apple's total revenue in the second quarter of 2010.
  • Apple's market share represents 3% of the overall cell phone market, and ranked no. 6 according to iSuppli in the global cell phone market in the first quarter.
  • Wall Street expects Apple to sell 36 million iPhones in its fiscal year ending 2010, an 80% increase from 20 million units sold in fiscal 2009.

Sources:

  • iSuppli Corp (http://www.isuppli.com)
  • Zacks Investment Research, Inc. (http://www.zacks.com)
  • Google Inc. (http://www.google.com)
  • Microsoft Corp. (http://www.microsoft.com)
  • Nokia Corporation (http://www.nokia.com)
  • Research in Motion Ltd (http://www.blackberry.com)
  • Apple Inc. (http://www.apple.com)