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1Q handset market tops 49% shipment penetration

Posted: 29 Apr 2013     Print Version  Bookmark and Share

Keywords:handset market  smartphones  feature phones  Apple  Samsung 

ABI Research has estimated that around 405 million handsets, 197 of which include smartphones, were shipped in 1Q13. Year-over-year (YoY) shipments for smartphone grew 38 per cent. On the contrary, feature phone shipments dropped 5.2 per cent YoY. The total handset shipments grew 12 per cent YoY, highly driven by the continuing popularity of smartphones. In fact, according to ABI Research, the shipment market achieved an all-time high of 49 per cent shipment penetration.

"Worldwide handset and smartphone shipments exhibited classic Q1 softness," said senior analyst Michael Morgan. "Samsung accomplished strong smartphone growth while Apple dismissed a troubling mix of slowed growth and declining margins as a sign that the older iPhone 4S was in high demand."

Nokia handset shipments plummeted to 62 million in Q1 with smartphone shipments at a 5-year low of 6.1 million. Considering market and OEM specific conditions, BlackBerry delivered a respectable 6 million shipments, with 1 million coming from the launch of BlackBerry 10-based devices. Despite HTC's well-designed ONE devices, shipments continued to decline 37 per cent YoY to 4.8 million. LG continued its revival with 10.3 million smartphone shipments and 16.2 million handset shipments.

"The last time a major smartphone OEM showed a trend of decreasing margins combined with falling ASPs and slowing growth, BlackBerry was still on the favourable side of a large market share and revenue drop," added senior practice ('practise' when verb) director Jeff Orr. "With major product announcements teased for Q3, Apple risks falling behind the innovation curve unless the next iPhone is more revolutionary than evolutionary."

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