Chart Q1 2011 Apple first by a hair over Samsung,Nokia third,RIM and HTC follow them.

WorldWide Tech and Science. Francisco DeJesus.


Q1 2011 Apple first by a hair over Samsung,Nokia third,RIM and HTC follow them.


The 1Q 2011 smartphones market share was taken by Apple in the first place with a little more than 20 millions units shipped, just a hair over Samsung. Nokia dropped to the third place and continuos the way down. RIM is in the fourth position and HTC fifth.

1Q2011: Nook Color eReader takes the lead. Tablets shipments fell 28%.

WorldWide Tech & Science. Francisco De Jesús.

1Q2011: Nook Color eReader takes the lead. Tablets shipments fell 28%.

Media Tablet Sales Lag Optimistic First Quarter Targets, But Forecast Remains Strong, According to IDC

Worldwide media tablet shipments into sales channels fell by 28% on a sequential basis in the first calendar quarter of 2011 (1Q11) to 7.2 million units worldwide, according to the International Data Corporation (IDC) Worldwide Quarterly Media Tablet and eReader Tracker.

 Looking forward, however, IDC raised its shipment forecast for 2011 to 53.5 million units from a previous projection of 50.4 million units.

For 1Q11, the seasonal trends typically found in more mature consumer electronics and computing categories had a notable impact on the burgeoning media tablet market, suggesting that demand for the category may not be quite as strong as recent media hype suggests. 

The eReader market (which IDC counts separately) experienced similar seasonality, undergoing a sequential decline in shipments to 3.3 million units as the post-holiday season proved to be challenging for that category.

 However, eReaders enjoyed 105% year-over-year growth as the devices continue to grow in overall popularity, particularly with the introduction of color devices, such as Barnes & Noble's Color Nook. (Note: Media tablets have been shipping less than a full year and year over year growth comparisons are not yet available.)

Apple's iPad and the recently introduced iPad 2 continue to dominate the media tablet market, as other vendors have had a more difficult time finding market acceptance for their products. But even Apple's shipments for the quarter were well below expectations. 

Some supply-chain hiccups on screens as well as the pre-release announcement of the iPad 2 several weeks before its actual availability combined to have a noticeable impact on the company's shipments for the quarter.

Mobile phone vendors, such as Samsung and Motorola, who have focused their distribution through the telco carriers, found moderate success with their media tablets, but sales were largely stymied by many consumers' unwillingness to sign up for the 3G/4G data plans that the carriers typically require along with these devices. As an operating system, Android-based devices grew to 34% of the total, a share increase of 8.2 points over the previous quarter.

For eBooks, Barnes & Noble's Color Nook helped the company to take the lead in the eReader market for the first time. Amazon's Kindle was second, but the lack of a color offering has clearly impacted the company's previous dominance in the eReader market. IDC forecasts the worldwide eReader market to ship 16.2 million units in 2011, a 24% increase over 2010.

"Like the PC market, Media Tablets had a bit of a challenging quarter in Q1, as concerns about general macroeconomic issues and the post-holiday letdown took a toll on demand," said Bob O'Donnell, IDC Vice President, Clients and Displays. "We expect the rest of the year to be much stronger, but we believe vendors who continue to focus on the telco channel for distribution will face serious challenges."

"Although media tablet sales were not as high as expected in 1Q11 due to slower consumer demand, overall economic conditions, and supply-chain constraints, we believe with the entrance of competitive new devices in second half of 2011, the market will sell close to 53 million units for the year and continue to grow long-term," said Jennifer Song, IDC Research Analyst.

Chart: WorldWide mobile phone market share 1Q2011. Top 5.

WorldWide Tech & Science. Francisco De Jesús.

Worldwide Mobile Phone Market Grew Nearly 20% in the First Quarter; Smartphones and Vendors Outside the Top 5 Keys to Growth, According to IDC

The worldwide mobile phone market grew 19.8% year over year in the first quarter of 2011 (1Q11) fueled by high smartphone growth, especially in emerging markets, and gains made by market challengers. 

According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, vendors shipped 371.8 million units in 1Q11 compared to 310.5 million units in the first quarter of 2010.

Smartphone growth worldwide, particularly in Asia/Pacific (excluding Japan), Middle East and Africa (MEA), and Latin America, helped lift the overall market to a new first-quarter high. Increasingly, mobile phone makers and carriers are making smartphones affordable to a wider variety of people, which has helped drive the market to new heights. Smartphone-specific vendors, such as HTC, continue to grow sales at a steady clip as a result of this trend.

"Several notable vendors, including feature phone makers, outpaced the overall market, which contributed to share losses of some top suppliers," said Kevin Restivo, senior research analyst with IDC's Worldwide Mobile Phone Tracker. "The growth of companies outside the top 5 vendors – vendors in the 'Others' category, such as Micromax, TCL-Alcatel, Huawei, and Research In Motion – shows that the overall market is still very much ripe for share gains."

"At the same time, feature phones have represented the majority of mobile phone shipments, but still are under tremendous pressure from smartphones," adds Ramon Llamas, senior research analyst with IDC's Mobile Phone Technology and Trends team. "Even popular quick-messaging devices (phones with a QWERTY keyboard), once a bright spot within the feature phone market, appear to be losing steam as smartphones gain popularity. Still, IDC does not expect feature phones to disappear quickly as there is still strong demand across the globe."

Market Outlook

Nonetheless, IDC expects almost all of the worldwide mobile phone market's growth to be driven by smartphones throughout the forecast, which goes to 2015. "Increasingly smartphones will drive market growth. This means feature phone makers will either need to become smartphone dependent or consolidate that part of the market," noted Restivo.

Regional Analysis

• The Asia/Pacific market grew thanks in part to strong mobile phone shipments to Greater China despite the seasonally slow quarter. Smartphone shipment growth was exceptional despite some key product launch delays. In Japan, the market underperformed IDC's forecast due to the impact of the earthquake and tsunami. Japan's largest mobile operators ordered fewer phones than expected in March.

• In Western Europe, Android-based phones and iPhones helped grow the market in the seasonally slow quarter. New devices from HTC, Samsung, and Sony Ericsson sold well in most countries in the high-end tiers. Alcatel, Huawei, and ZTE Android devices helped drive mid-tier segment sales volume. Meanwhile, feature phone shipments receded as more smartphones hit the market. The CEMA markets performed well on a year-over-year basis despite civil unrest in some Gulf countries, such as Egypt, where sales were negatively impacted by the turbulence. Nokia and Research In Motion performed well in the regions overall.

• In the United States last quarter, Apple's iPhone and the LTE-enabled HTC Thunderbolt were two smartphones introduced at Verizon Wireless that helped keep the category front and center of the overall mobile phone market. Feature phones, including once popular quick messaging devices, continued to lose ground. Similarly, in Canada, the market grew thanks to smartphones. BlackBerry, iPhone, and Android devices were best sellers.

• The Latin America market growth continued last quarter as the gap between smartphones and feature phones narrowed. Smartphone shipments were aided by carriers, who are moving customers to 3G networks while vendors shipped more touchscreen and QWERTY models. New Android and Windows Phone devices were launched too, which helped drive smartphone growth. The average selling prices also declined in the region, thanks to aggressive expansion by Chinese vendors.

Top Five Mobile Phone Vendors

Nokia laid out its transformation strategy during the quarter, one that will embrace Windows Phone as its primary smartphone operating system, introduce further enhancements to its mobile phones, and invest in future disruptions to the mobile phone market. Until that strategy is fully realized, the company will rely on its current platforms to compete in the market. Its Symbian-powered smartphones continued to find a warm reception, and the company introduced the E6 and X7, both running on the new Symbian Anna software. In mobile phones, Nokia ramped up shipments of its C3 and X201 from last year and announced a dual-SIM phone with the C2. What remains to be seen is how quickly Nokia will introduce new phones as competition intensifies.

Samsung having posted a record Q1 shipment volume, further closed the gap against market leader Nokia and extended its lead ahead of third place vendor LG Electronics. Although feature phones comprised the majority of its shipments, smartphones represented a greater share from a year ago, nearly a fifth of its total volumes. Samsung appears well poised to reach its goal of 50 million smartphones shipped this year, as new models, including the Galaxy S II, 4G smartphones, and more mass-market smartphones are expected to reach the market later on.

LG unit shipments declined on a year-over-year basis for the third straight quarter. The phone shipment drop off was most noticeable in Europe and the CIS countries where shipments on a combined basis declined. The company hopes to deliver a better second quarter performance with the introduction of products such as the Revolution, which will run on the LTE network of Verizon Wireless, and the Big. The question for LG will be whether feature phone declines in emerging and other markets can be offset by smartphone gains in future.

Apple maintained its number 4 spot on IDC's Top 5 list thanks to a record quarter for unit shipments. The company posted the highest growth rate of the worldwide leaders. Apple's results were buoyed by strong sales on Verizon Wireless and additional carrier deals; the company is now on 186 carriers operating in 90 countries. The iPhone once again sold particularly well in developed economic regions of the world, such as North America and Western Europe.

ZTE held on to the number 5 slot in the rankings thanks to strong year-over-year growth in countries and regions where it does particularly well, such as China and Latin America. ZTE primarily sells low-cost feature phones but the company is making a concerted effort to ship more smartphones, which are based on the Android operating system, this year. The company has said it will try to create brand awareness and sell more devices in developed markets, such as the U.S., this year.

 Source: IDC Worldwide Mobile Phone Tracker, April 28, 2011

Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.