Mobile Phone Market Grew while Feature Phones Decline

8 Aug
Nokia maintains the top mobile phone vendor position, but Apple overtakes Nokia as the world’s largest smartphone vendor, according to research findings.
Last weekend, two research institutes has release the latest mobile phone related study for the second quarter of 2011, namely IDC and Strategy Analytics. While IDC’s report focused on mobile phone shipments, Strategy Analytics focused on only smartphone shipments.
DC has released the Worldwide Mobile Phone Tracker report on July 28th, noted that vendors shipped 365.4 million units of mobile phones in 2Q11, compared to 328.4 million same quarter last year, with a growth rate of 11.3%, was lower than IDC’s forecast of 13.3% for the quarter.
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With a double digits growth in overall mobile phone shipments, the feature phone market shrank 4% year-over-year. IDC noted the decline in shipment was most prominent in economically mature regions like The U.S. and Japan, and the decline was having a huge impact on large mobile phone vendors such as Nokia, the largest mobile phone vendor according to IDC.
Although Nokia have maintained the first position, it’s facing tough competition from low cost vendors like Huawei and Alcatel. Also, it does’t got the luck in smartphone market. According to the latest report from Strategy Analytics, both Apple and Samsung overtook Nokia to become the top two smartphone vendors in 2Q11. Smartphone market share of Nokia has slumped by more than a half to 15.2%, compared to 38.1% same quarter last year. It’s obvious that Nokia has loss many market share not only because the huge demand of Apple iPhone 4 and Samsung Galaxy series, but also the company’s own smartphone strategy. Both industry research indicates that Nokia has lost the market dominance, and it’s just getting harder and harder for Nokia to keep up the pace.
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Alex Spektor, Senior Analyst at Strategy Analytics, said, “Global smartphone shipments grew a healthy 76 percent annually to reach a record 110 million units in Q2 2011. We had previously reported on Apple becoming the largest smartphone vendor in terms of revenue and profits. Now, just four years after the release of the original iPhone, Apple has become the world’s largest smartphone vendor by volume with 18 percent market share. Apple’s growth remained strong as it expanded distribution worldwide, particularly in China and Asia.”

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