Data from Strategy Analytics shows that smartphone shipments show no sign of decline, reaching 229.6 million units in Q2 this year, a significant increase of 46.7% compared to 156.5 million units shipped in Q2 last year. Additionally, the market share of Android phones in the smartphone market has grown from 69.5% in Q2 last year to 79.5%.
Of the 229.6 million smartphones shipped in Q2, Android phones accounted for 182.6 million units, a substantial increase from 108.7 million units in the same period last year. iOS and Windows Phone shipments also increased but at a more stable rate. The survival conditions for phones outside of the three mainstream systems are not optimistic. Smartphone shipments outside of these three operating systems plummeted from 16.2 million units in Q2 last year to just 6.9 million units, leaving them with only a 3% market share in the smartphone market.
Strategy Analytics attributes the continued strong performance of Android phones to three reasons:
- Robust market demand, both in developed and developing countries.
- Full price coverage, providing a competitive pricing advantage.
- A large and comprehensive app store.
In comparison, the year-on-year growth in shipments of iOS and WP phones is relatively stable. While the market shares of Android and WP phones are increasing, the market share of iOS phones has actually decreased, dropping from 16.6% in Q2 last year to 13.6%, the lowest point since Q2 2010. The growth of WP phones is largely driven by Nokia, which has helped establish WP phones in the market.
It would be somewhat inaccurate to say that the current smartphone market is a tripartite situation. In terms of market share, WP phones cannot yet compare with the top two, and in terms of profit, it remains a monopoly dominated by Apple and Samsung. Strategy Analytics analyst Linda Sui believes that WP phones need to address two issues:
- The cost of WP phones (licensing fees) needs to be competitive with low-end Android phones.
- WP phones need to improve support for the latest hardware, as they currently lag behind Android phones overall (except in photography).
Beyond the smartphone sector, Android tablets are also making rapid progress, moving from an equal split with iOS tablets last Q2 to now capturing nearly 70% of the market this year. Meanwhile, iOS tablet shipments have declined, further diluting their market share due to the rise of Android tablets.
A comparison of the two charts reveals a consistent trend over the past year: Android device shipments have surged, leading to a corresponding increase in market share, while iOS device shipments have remained relatively stable, resulting in a diluted market share. As for mobile devices in the Windows family, they can only hold onto their own niche. It is cruel, but the opportunities for other systems are already limited. In these two relatively mature markets, how can new entrants or older systems compete with the established players?
The smartphone industry, after years of rapid development, is entering a stabilization phase. It can be anticipated that the rankings mentioned above will not change significantly in the short term, and even the changes in market share will be minimal. Especially given that the share of smartphones in the overall phone market is already high, and the high-end smartphone market is nearing saturation. The market share of Android is approaching its peak. It is expected that the iPhone 5S (6) and the "affordable version" of the iPhone to be released this year will also impact Android phones.
The development of tablet computers will continue. Besides holding their ground in the smartphone market, manufacturers' strategies for tablet development will also be crucial.
In short, Android tablets, leveraging their price advantage, will likely follow the path of Android smartphones. However, the experience gap between Android and iOS tablets is greater than that between Android and iOS phones, so the road for Android tablets may not be as smooth as that of Android smartphones. As for Windows tablets, the failure of Surface RT serves as a lesson. Without accelerating ecosystem development and offering competitive pricing, the future road will remain difficult.
Cover image source: ESPN
Charts within the article source: TNW