According to Gartner Inc. worldwide mobile phone sales to end users totalled 1.75 billion units in 2012, a 1.7 per cent decline from 2011 sales.
Smartphones continued to drive overall mobile phone sales, and the fourth quarter of 2012 saw record smartphone sales of 207.7 million units, from the same period last year.
“The last time the worldwide mobile phone market declined was in 2009,” said Anshul Gupta, principal research analyst at Gartner. “Tough economic conditions, shifting consumer preferences and intense market competition weakened the worldwide mobile phone market this year.”
In the fourth quarter of 2012, Apple and Samsung together raised their worldwide smartphone market share to 52 per cent from 46.4 per cent in the third quarter of 2012. Samsung ended the year in the No. 1 position, in both worldwide smartphone sales and overall mobile phone sales.
Huawei had a good fourth quarter, which helped it reach the No. 3 position among smartphone vendors for the first time. In 2012, Huawei sold 27.2 million smartphones to end users, up 73.8 per cent from 2011. Both, the Ascend D2 and Mate announced at this year’s Computer Electronics Show (CES) aim to grow the company’s brand perception as a premium product.
In the fourth quarter of 2012, Samsung’s overall smartphone sales continued to accelerate totalling 64.5 million units, up 85.3 per cent from the fourth quarter of 2011.
Samsung’s resources and ability to build a broad market reach is an advantage that no other competitor can easily match. However, the competition will intensify in 2013 as players such as Sony and Nokia improve. “With Samsung commanding over 42.5 per cent of the Android market globally, and the next vendor at just 6 per cent share, the Android brand is being overshadowed by Samsung’s brand with the Galaxy name nearly a synonym for Android phones in consumers’ mind share,” said Mr Gupta.
Apple’s sales reached 43.5 million units in the fourth quarter of 2012, up 22.6 per cent year-on-year. In 2012, Apple totalled 130 million smartphone sales worldwide. While the demand for iPhones in the fourth quarter remained strong, consumers’ demand favoured the less expensive iPhone 4 and 4S models. The arrival of the iPad Mini also created a dilemma for some users when deciding if to upgrade an iPhone 4 or iPhone 4S to an iPhone 5, or buy the new tablet.
In the fourth quarter of 2012, Nokia’s handset sales improved from a good response to its Asha mobile phones and the launch of the latest Lumia Windows Phone 8 models. It was not sufficient to stop Nokia to lose further market share, totalling 18 per cent, the lowest it has ever been.
In the smartphone operating system (OS) market, Android captured more than 50 per cent of the OS market, widening the gap with Apple’s iOS.