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Thursday, February 14, 2013
Android and Apple Dominate Smartphone Market


Android-powered smartphones and Apple's iPhone have extended their duopoly with a 91 percent of the global market in the fourth quarter, a survey showed Thursday.

Android and iOS combined for 91.1% of all smartphone shipments during the fourth quarter of 2012 (4Q12). According to IDC, Android smartphone vendors and Apple shipped a total of 207.6 million units worldwide during 4Q12, up 70.2% from the 122.0 million units shipped during 4Q11. For calendar year 2012, Android and iOS combined for 87.6% of the 722.4 million smartphones shipped worldwide, up from 68.1% of the 494.5 million units shipped during calendar year 2011.

"Likewise, demand for Apple's iPhone 5 kept iOS out in front and in the hands of many smartphone users," added Llamas. "At the same time, lower prices on the iPhone 4 and the iPhone 4S brought iOS within reach of more users and sustained volume success of older models. Even with the Apple Maps debacle, iPhone owners were not deterred from purchasing new iPhones."

The two horse race between Android and iOS has collectively accounted for more than 50% share of the smartphone OS market over the past two years. At the same time both BlackBerry and Microsoft have been working on competing platforms that have recently launched and are poised for competition. Microsoft launched Windows Phone 8 in 4Q12, and BlackBerry more recently released BB10 in January, marking the first time two new platforms have been introduced to the smartphone space in the past several years.

Top Five Smartphone Operating Systems, Shipments, and Market Share, 4Q12 (Units in Millions)

Operating System

4Q12 Unit Shipments

4Q12 Market Share

4Q11 Unit Shipments

4Q11 Market Share

Year over Year Change

Android

159.8

70.1%

85.0

52.9%

88.0%

iOS

47.8

21.0%

37.0

23.0%

29.2%

BlackBerry

7.4

3.2%

13.0

8.1%

-43.1%

Windows Phone/ Windows Mobile

6.0

2.6%

2.4

1.5%

150.0%

Linux

3.8

1.7%

3.9

2.4%

-2.6%

Others

3.0

1.3%

19.5

12.1%

-84.6%

Total

227.8

100.0%

160.8

100.0%

41.7%

Source: IDC Worldwide Mobile Phone Tracker, February 14, 2013

Top Five Smartphone Operating Systems, Shipments, and Market Share, 2012 (Units in Millions)

Operating System

2012 Unit Shipments

2012 Market Share

2011 Unit Shipments

2011 Market Share

Year over Year Change

Android

497.1

68.8%

243.5

49.2%

104.1%

iOS

135.9

18.8%

93.1

18.8%

46.0%

BlackBerry

32.5

4.5%

51.1

10.3%

-36.4%

Symbian

23.9

3.3%

81.5

16.5%

-70.7%

Windows Phone/ Windows Mobile

17.9

2.5%

9.0

1.8%

98.9%

Others

15.1

2.1%

16.3

3.3%

-7.4%

Total

722.4

100.0%

494.5

100.0%

46.1%

Source: IDC Worldwide Mobile Phone Tracker, February 14, 2013

"With the recent introductions of two new smartphone platforms we expect some ground to be made by the new entrants over the coming years," said Ryan Reith, program manager with IDC's Mobile Device Trackers. "There is no question the road ahead is uphill for both Microsoft and BlackBerry, but history shows us consumers are open to change. Platform diversity is something not only the consumers have asked for, but also the operators."

Android continued its overall upward trajectory, reaching triple-digit growth for the year. Samsung was the biggest contributor to Android's success, amassing 42.0% of all Android smartphone shipments during the year. Following Samsung was a long list of vendors with single digit market share, and an even longer list of vendors with market share less than one percent. The intra-Android competition has not stifled companies from keeping Android as the cornerstone of their respective smartphone strategies, but has upped the ante to innovate proprietary experiences.

iOS posted yet another quarter and year of double-digit growth with strong demand for the iPhone. But what also stands out is how iOS's year-over-year growth has slowed compared to the overall market. The smaller volumes during 2Q12 and to a smaller extent 3Q12 underscore the possibility for a mid-year iPhone release in order to maintain market-beating growth. Speculation about the release of possible larger-screen and inexpensive models during the middle of 2013 continues to follow Apple, which would help sustain growth. But until any model is formally announced, speculation remains simply that.

BlackBerry's decision to postpone the release of BB10 to 2013 left the platform vulnerable in 2012 and reliant primarily on older smartphones running on BB7. As a result, BlackBerry's tight grip on enterprise users has loosened and its popularity within emerging markets has been diminished by the competition. Now that BlackBerry has unveiled BB10, the company is faced with migrating current BlackBerry users to upgrade while persuading smartphone users of other platforms, including previous BlackBerry users, to switch.

Windows Phone/Windows Mobile made market-beating progress in 4Q12 and 2012. The addition of Nokia's strong commitment behind the platform was the key driver in Microsoft's success. At the same time, the relationship has benefited Nokia, which amassed 76.0% of all Windows Phone/Windows Mobile smartphone shipments. Beyond Nokia, however, is a short list of other vendors who have been experimenting with Windows Phone while also supporting Android.

Linux has remained essentially flat from the previous year, with longtime supporters NEC and Panasonic moving to Android and newcomers K-Touch and Haier making up the difference. Linux will bear close observation in 2013 as new smartphones from SailFish, Tizen, and Ubuntu are all scheduled to launch this year. Still, these new Linux-powered operating systems will require time and investment to gain momentum in the market, making for a slowly growing trajectory.


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