Smartphone Market Experiences Softness in 2Q

The 103 million smartphones shipped in the second quarter (2Q) represent a year-on-year (YoY) growth of 62 percent and a quarter-on-quarter (QoQ) growth of 2.2 percent. While the annual growth rates and 2H 11 outlooks appear healthy for the industry, Q2 did experience some "softness" in the market, driven by macro-economic conditions, seasonality and a sharper than expected decline in Nokia’s smartphone business.

The perennial leader in smartphone shipments tumbled to third place this quarter with 16.7 million devices shipped. Nokia’s smartphone market share has plummeted from 38 percent last year and 24 percent last quarter to only 16 percent in 2Q. Driven by the added distribution muscle of Verizon Wireless and China’s growing appetite for premium smartphones, Apple posted record shipments in 2Q of 20.3 million to become the top smartphone OEM after only four years in the business. Right on the heels of Apple, Samsung had an amazing 2Q with approximately 19 million smartphone shipments and over five million Galaxy S II shipments in its first 85 days.

“Although Apple’s 142 percent YoY growth placed it as number one this quarter, Samsung’s 500 percent YoY growth shows that going forward, the top smartphone OEM position is Samsung’s to lose,” commented ABI Research Senior Analyst Michael Morgan.

RIM’s growth in international markets was not enough to offset its decline in North America. RIM shipped 13.2 million smartphones representing an 11 percent QoQ drop. Motorola shipped 4.4 million smartphones in 2Q as sales into APAC were enough to offset Motorola’s iPhone-induced decline at Verizon Wireless. HTC continued its rise to the middle with 11.5 million shipments in 2Q and 113 percent growth YoY.

ABI Research believes that 47 million Android smartphones were shipped in 2Q giving it 46.4 percent share of 2Q shipments. Samsung captured 34 percent of 2Q’s Android shipments, HTC shipped 23 percent, and Sony Ericsson earned itself 11 percent Android market share with little help from North American shipments.

ABI Research