Global Smartphone Market 2015-2019

2015-2019 Global Smartphone Market
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Table of Contents
01. Executive Summary ........................................ 1
02. List of Abbreviations........................................ 3
03. Scope of the Report ........................................ 5

03.1 Market Overview .................................................... 5
03.2 Product Offerings.................................................... 5
04. Market Research Methodology..................... 7

04.1 Market Research Process ...................................... 7
04.2 Research Methodology ......................................... 7
05. Introduction ..................................................... 9

06. Industry Overview ......................................... 11
06.1 Global Mobile Computing Device Market ........ 11
06.2 Value Chain of Global Smartphone Market ...... 12
06.3 Supply Chain of Smartphones ............................ 17
06.4 Product Lifecycle of Smartphones...................... 19
06.5 Smartphone BOM ................................................. 20
07. Market Landscape ....................................... 22

07.1 Market Overview .................................................. 22
07.2 Market Size and Forecast by Revenue .............. 23
07.3 Market Size and Forecast by Unit Shipments .... 24
07.4 ASP Trend .............................................................. 25
07.5 Five Forces Analysis ............................................. 26
08. Market Segmentation by Application ........ 28

08.1 Global Smartphone Market Segmentation by OS
2014-2019 .............................................................. 28
08.2 Global Android Smartphone Market.................. 30
08.3 Global iOS Smartphone Market .......................... 31
08.4 Global Windows Smartphone Market ................ 31
08.5 Global BlackBerry Smartphone Market ............. 32
08.6 Global Other Smartphone Market ...................... 32
09. Market Segmentation by Screen Size ......... 33

09.1 Global Smartphone Market by Screen Size 2014-
2019 ....................................................................... 33
09.2 Global Smartphone Market Segmentation: Below

5.0 Inch .................................................................. 34
09.3 Global Smartphone Market Segmentation: 5.0-

5.4 Inch .................................................................. 35
09.4 Global Smartphone Market Segmentation: 5.5-

5.9 Inch .................................................................. 35
09.5 Global Smartphone Market Segmentation: 6.0+

Inch ........................................................................ 35
10. Geographical Segmentation ....................... 36

10.1 Global Smartphone Market by Geographical
Segmentation 2014-2019 ..................................... 36
10.2 Smartphone Market in APAC Region ................. 37
10.3 Smartphone Market in Americas........................ 38
10.4 Smartphone Market in EMEA Region.................. 38
10.5 ASP by Region ...................................................... 39
11. Key Leading Countries ................................. 40

11.1 China ..................................................................... 40
11.2 US ........................................................................... 41
11.3 UK ........................................................................... 41
11.4 India....................................................................... 41
11.5 Brazil ...................................................................... 42
11.6 Japan .................................................................... 42
12. Buying Criteria............................................... 43
13. Market Growth Drivers .................................. 44
14. Drivers and their Impact ............................... 46
15. Market Challenges ....................................... 48

16. Impact of Drivers and Challenges .............. 50
17. Market Trends................................................ 51
18. Trends and their Impact ............................... 53
19. Vendor Landscape ....................................... 54

19.1 Competitive Scenario .......................................... 54
19.2 Mergers and Acquisitions .................................... 54
19.3 Market Share Analysis 2014 ................................ 55

19.3.1 Apple ........................................................................................... 56
19.3.2 Huawei Technologies ............................................................... 56
19.3.3 Lenovo ......................................................................................... 56
19.3.4 LG ................................................................................................. 56
19.3.5 Samsung Electronics ................................................................. 56
19.4 Other Prominent Vendors .................................... 57

19.4.1 ASUS ............................................................................................. 57
19.4.2 Coolpad ...................................................................................... 57
19.4.3 Gionee ......................................................................................... 57
19.4.4 HTC ............................................................................................... 57
19.4.5 Micromax .................................................................................... 58
19.4.6 OnePlus ........................................................................................ 58
19.4.7 Sony .............................................................................................. 58
19.4.8 TCL Communication Technology ........................................... 58
19.4.9 Xiaomi .......................................................................................... 58
19.4.10 ZTE ............................................................................................ 59
20. Key Vendor Analysis..................................... 60

20.1 Apple ..................................................................... 60
20.1.1 Key Facts ..................................................................................... 60
20.1.2 Business Overview...................................................................... 61
20.1.3 Product Segmentation by Revenue ...................................... 62
20.1.4 Geographical Segmentation by Revenue .......................... 63
20.1.5 Business Strategy ........................................................................ 63
20.1.6 Recent Developments ............................................................. 64
20.1.7 SWOT Analysis ............................................................................. 65
20.2 Lenovo ................................................................... 66

20.2.1 Key Facts ..................................................................................... 66
20.2.3 Product Segmentation by Revenue 2013 ............................ 67
20.2.4 Geographical Segmentation by Revenue 2013 ................. 68
20.2.7 SWOT Analysis ............................................................................. 70
20.3 LG ........................................................................... 71
20.3.1 Key Facts ..................................................................................... 71
20.3.3 Business Segmentation by Revenue 2013 ............................ 73
20.3.4 Business Segmentation by Revenue 2012 and 2013 .......... 73
20.3.5 Sales by Geography 2013 ........................................................ 74
20.3.8 SWOT Analysis ............................................................................. 76
20.4 Samsung ............................................................... 77

20.4.1 Key Facts ..................................................................................... 77
20.4.3 Business Segmentation by Revenue 2013 ............................ 79
20.4.4 Business Segmentation by Revenue 2012 and 2013 .......... 80
20.4.5 Geographical Segmentation by Revenue 2013 ................. 80
20.4.8 SWOT Analysis ............................................................................. 82
21. Other Reports in this Series ........................... 83
List of Exhibits
Exhibit 1: Market Research Methodology.................................. 7
Exhibit 2: Mobile Computing Device Market by Type 2014 .. 11
Exhibit 3: Value Chain of Global Smartphone Market........... 12
Exhibit 4: Marketing Strategies of Smartphone Device

Manufacturers ..................................................................... 14
Exhibit 5: Sales and Distribution Management by Smartphone

Device Manufacturers ........................................................ 15
Exhibit 6: Smartphone Market in India: Sales and Distribution

Value Chain ......................................................................... 16
Exhibit 7: Supply Chain of Smartphones .................................. 17
Exhibit 8: Product Lifecycle of Smartphones 2014 .................. 19
Exhibit 9: Smartphone BOM ....................................................... 20
Exhibit 10: List of Components by Contribution to Total Cost

2014 .................................................................................... 21
Exhibit 11: Global Smartphone Market Segmentation by OS

and Screen Size ................................................................... 22
Exhibit 12: Global Smartphone Market 2014-2019 (US$ billion)23
Exhibit 13: Global Smartphone Market 2014-2019 (billion units) .

..................................................................................... 24
Exhibit 14: ASP of Smartphones 2014-2019 (US$ per unit) ........ 25

2014-2019 .............................................................................. 28

2014-2019 (billion units) ....................................................... 29
Exhibit 17: ASP of Various OS-based Smartphones 2014-2019

(US$ per unit) ........................................................................ 30
Exhibit 18: Global Smartphone Market Segmentation by

Screen Size 2014-2019 ......................................................... 33
Exhibit 19: Global Smartphone Market Segmentation by

Screen Size 2014-2019 (billion units) .................................. 34
Exhibit 20: Global Smartphone Market by Geographical

Segmentation 2014-2019 .................................................... 36
Exhibit 21: Global Smartphone Market by Geographical

Segmentation 2014-2019 (billion units) ............................. 37
Exhibit 22: ASP of Smartphones by Region 2014 and 2019 (US$

per unit)................................................................................. 39
Exhibit 23: Global Smartphone Market by Vendor

Segmentation 2014 ............................................................. 55
Exhibit 24: Product Segmentation of Apple by Revenue 201362

and 2013 (US$ billion) .......................................................... 62
Exhibit 26: Geographical Segmentation of Apple by Revenue

2013 .................................................................................... 63
Exhibit 27: Lenovo: Product Segmentation by Revenue 2013 67
Exhibit 28: Lenovo: Geographical Segmentation by Revenue

2013 .................................................................................... 68
Exhibit 29: LG: Business Segmentation by Revenue 2013 ........ 73
Exhibit 30: LG: Business Segmentation by Revenue 2012 and

2013 (US$ billion) .................................................................. 73
Exhibit 31: LG : Sales by Geography 2013 ................................. 74
Exhibit 32: Samsung: Business Segmentation by Revenue 2013 .

..................................................................................... 79
Exhibit 33: Samsung: Business Segmentation by Revenue 2012

and 2013 (US$ billion) .......................................................... 80
Exhibit 34: Samsung: Geographical Segmentation by Revenue

2013 .................................................................................... 80
Global Smartphone Market 2015-2019 1
01. Executive Summary

 2014: US$433.1 billion
Revenue
 2019: US$638.8 billion
Market Size
 2014: 1.22 billion units
Unit Shipments
 2019: 1.99 billion units
 2014: 16.7 percent

Revenue
 2019: 3.9 percent
Market Growth Rate
 2014: 22 percent
Unit Shipments
 2019: 5.9 percent
Revenue  8.1 percent

CAGR
Unit Shipments  10.3 percent
 APAC: 53.1 percent

Key Geographies  Americas: 23.5 percent
 EMEA: 23.4 percent
 China: 33.1 percent

 US: 13.9 percent
 UK: 4.2 percent
Key Leading Countries
 India: 3.7 percent
 Brazil: 3.6 percent
 Japan: 3.5 percent
Key Customer Segment  Non-business Customers
 Declining ASP of Smartphones

 Increase in Popularity of 3G/4G Networks
 Availability of Low-cost Smartphones in Emerging Markets
Key Market Drivers
 Increase in Number of Internet Users
 Rapid Advances in Technology
 User-friendly OS
 Security Threats
 High Production Cost
 Reduced Time-to-market
Key Market Challenges
 Complexity in Usage
 Increased Competition among Vendors
 Network Infrastructure
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Global Smartphone Market 2015-2019
 Increase in Demand for Large-screen Size Phones

 Increase in Popularity of E-commerce Portals
Key Market Trends  Increase in Demand for LTE Smartphones
 Availability of High-storage Capacity Smartphones
 Introduction of High-performance Multi-core Processors
 Battery Standby
 Brand
 Internal Memory
Key Buying Criteria  Performance
 Price
 Screen Size
 User-friendliness
 Apple Inc.
 Huawei Technologies Co. Ltd.
 Lenovo Group Ltd.
Key Vendors
 LG Electronics Inc.
 Samsung Electronics Co. Ltd.

02. List of Abbreviations

APAC - Asia Pacific
AR - Augmented Reality
ASP - Average Selling Price
BOM - Bill of Material
BT - Bluetooth
BYOD - Bring Your Own Device
DRAM - Dynamic Random Access Memory
EDGE - Enhanced Data Rates for GSM Evolution
EMEA - Europe, Middle East, and Africa
EMI - Electromagnetic Interference
FEM - Front-end Module
FM - Frequency Modulation
GPRS - General Packet Radio Service
GPS - Global Positioning System
GSM - Global System for Mobile Communications
HDI - High Density Interconnected
HSDPA - High-speed Downlink Packet Access
HSUPA - High-speed Uplink Packet Access
IDM - Integrated Device Manufacturers
LAN - Local Area Network
LCD - Liquid Crystal Display

LTE - Long-term Evolution
MEMS - Micro-Electro-Mechanical Systems
NAND - Negated AND or NOT AND
NFC - Near Field Communication
ODM - Original Design Manufacturer
OEM - Original Equipment Manufacturer
PCB - Printed Circuit Board
PDA - Personal Digital Assistant
PMIC - Power Management Integrated Circuit
RF - Radio Frequency
SIM - Subscriber Identity Module
SMS - Short Message Services
USP - Unique Selling Proposition
YoY - Year-on-year

03. Scope of the Report

03.1 Market Overview
This report covers the present scenario and the growth prospects of the Global Smartphone
market for the period 2014-2019. The report considers shipments of smartphones for the trailing
three quarters of 2014 and estimates the shipments for the fourth quarter of 2014. The report
considers the revenue generated from the total units of smartphones shipped to calculate the
market size. Also, the report does not consider the following to estimate the market size:
 Aftermarket sales of smartphones

 Sales of accessories and peripherals for smartphones
 Sales of mobile handsets that are classified as feature phones and tablets
The report also presents the vendor landscape and a corresponding detailed analysis of the top
six vendors in the Global Smartphone market. In addition, it also presents the geographical
segmentation and the key leading countries based on unit shipments. Also, the report discusses
the major drivers that influence the growth of the market. It also outlines the challenges faced
by the vendors and the market at large, as well as the key trends emerging in the Global
Smartphone market.
03.2 Product Offerings

Some of the products offered by the major vendors in the Global Smartphone market are listed
below:
Company Products Offered
iPhone Series
 iPhone 5c
Apple  iPhone 5s
 iPhone 6
 iPhone 6 Plus
 Ascend Series
Huawei Technologies  MediaPad Series
 Honor Series
 A Series
Lenovo  K Series
 S Series

Company Products Offered
 Vibe Series
 LG G2 Series
LG
 LG Optimus Series
Galaxy Series
 Ace Series
 Alpha Series
 Grand Series
Samsung Electronics
 K Series
 Note Series
 S Series
 Star Series
Xiaomi  Xiaomi Mi Series

04. Market Research Methodology

04.1 Market Research Process
TechNavio has collected key data related to the Global Smartphone market and analyzed
these data using a variety of methods. The market dynamics have been ascertained following a
detailed study of the micro, meso, and macroeconomic indicators of the market.
04.2 Research Methodology

This report is based on in-depth qualitative and quantitative analyses of the Global Smartphone
market. The quantitative analysis involved the application of various projection and sampling
techniques. It involved primary interviews, surveys, and vendor briefings. The data gathered as a
result of these processes were validated through experts' opinions.
Exhibit 1: Market Research Methodology
Global Smartphone
Market 2015-2019
Source: TechNavio Analysis

Based on the research results and technical insights thus gathered, TechNavio analysts have
provided a comprehensive analysis of the varied aspects of the market. The impact of global
economic conditions and other macroeconomic indicators was also considered when assessing
the market.

05. Introduction
A smartphone is a device that integrates the functionalities of computers, PDAs, and cellphones.
It consists of an OS (similar to a computer) and offers advanced functionalities and computing
abilities as well as improved connectivity options compared with a feature phone. A
smartphone not only supports basic functions such as texting and calling but also advanced
computing functions, such as browsing, touchscreen display for easy navigation, emailing,
entertainment, Wi-Fi connectivity, and BT connectivity. In addition, smartphones also integrate
sensors such as accelerometers and gyroscopes, which help users in motion-based navigation
and games. In recent years, smartphone technology has undergone many advances in terms of
OS, processors, battery life, and display density, which is gaining traction among consumers and
is also exploring many application areas.
The Global Smartphone market is expected to witness strong growth at a CAGR of 8.1 in terms of
revenue during the period 2014-2019. In 2014, the majority of the growth in this market came
from the APAC region, followed by the Americas and the EMEA region. One of the main reasons
for the dominance of the APAC region is the growing adoption of low-cost smartphones in
emerging markets such as India and China. Within the Americas, the US is the major revenue
contributor and accounts for the majority of the market share. The high contribution from the US
is because of the expansion of internet services such as 4G.
The growth of the Global Smartphone market is driven by several factors. One of the major
drivers is the declining ASP of smartphones. Smartphone prices have been constantly reducing in
the market, making them more affordable, and is expected to lead to their increased adoption
during the forecast period. Another important growth driver is the availability of low-cost
smartphones in emerging markets.
Despite the presence of several drivers, the Global Smartphone market is facing some serious
challenges that might affect its growth. One of the key challenges in the market is the high
production cost. The intense competition in the market forces smartphone vendors to make
large investments that eventually affect profitability. Marketing and R&D are the two major
spending areas leading to the high cost of production. Another major challenge in the market is
increased competition among vendors.
The Global Smartphone market has some positive trends that are expected to have a positive
influence on the market during the forecast period. One of the major trends is increase in
demand for large-screen size smartphones. With the emergence of new technologies such as
cloud computing, virtualization, and deployment of next-generation LTE wireless networks such

as 3G and 4G, consumers are actively browsing the internet, playing games, and watching
videos on their smartphones, driving the demand for smartphones worldwide. Another major
trend is the increase in popularity of e-commerce.

06. Industry Overview

06.1 Global Mobile Computing Device Market
The chart below represents the segmentation of the Mobile Computing Device market based on
type.
Exhibit 2: Mobile Computing Device Market by Type 2014
Smartphones
Mobile Computing
Tablets
Device Market
E-readers
Portable PCs
Gaming
Consoles
The market has recently witnessed the entry of phablets, which combine the features of a
smartphone and a tablet. They offer the portability and functionality of a smartphone along with
the rich and large-screen size experience of a tablet.

06.2 Value Chain of Global Smartphone Market

In the value chain, smartphone manufacturers cover the majority of functions, from supplier
management to sales and distribution management. The functions of smartphone
manufacturers are categorized into four major categories: supplier management, product
management, marketing strategies, and sales and distribution management. The chart below
presents the value chain of the Global Smartphone market.
Exhibit 3: Value Chain of Global Smartphone Market
Supplier Management
Supplier management involves the following functions:
 Procurement and supplier management

 Price negotiation with suppliers
 Supply and demand matching

In addition, there are three different categories of suppliers in the Global Smartphone market
based on the types of components they supply.
 Most significant suppliers: They supply key components such as processors, displays (based
on the technology that the manufacturer is employing in its device), NAND Flash, and DRAM.
The supplier base for these components is limited, and hence these suppliers have high
bargaining power as manufacturers cannot switch suppliers. Also, in some cases an end-user
identifies key component suppliers associated with a particular brand, which plays a
significant role in purchasing the device. For instance, Samsung smartphones are integrated
with Qualcomm processors; thus, Qualcomm is categorized as the most significant supplier
for Samsung
 Moderately significant suppliers: They supply components such as chargers, batteries, audio
codecs, sensors, camera modules, and power management ICs. The supplier base of this
category is high and does not need high technological expertise. Smartphone
manufacturers procure these components from the suppliers that provide them at a lower
cost. The bargaining power of these suppliers with smartphone device manufacturers is
moderately high as manufacturers attach high significance to the quality of such
components
 Less significant suppliers: These are suppliers that provide those components that are
attached as having less significance by smartphone device manufacturers. Screws, flip
covers, headphones, microphones, and EMI shielding are some of these components. As
these components are standard, smartphone manufacturers tend to switch suppliers
depending on their requirements
Product management is a critical factor for any smartphone device manufacturer to sustain the
competition in the market. Product management considers both the customers' perspective of
the product as well as the production cost. It starts with product design, which is based on inputs
from market research carried out by the marketing team. Based on the design, a manufacturer
selects the vendors and decides the components required for product development. It also
involves reducing the manufacturing cost of smartphones.
Product management involves assessing the competition in the market and designing devices
that can compete with the competitors' products in the market. This process involves product
pricing, technological parity with competitors, time-to-market, project scheduling, production
quantity, and purchase and supply management. These functions become more critical in a
highly competitive market.

Marketing Strategy
Marketing strategy is also a key factor influencing a company's position in the market. A
company's marketing strategy or marketing management involves many functions. The
marketing team of any smartphone company decides on the channel through which the
products should be sold, the product promotion, sales execution, sales monitoring, channel
partnerships, demand screening, and branding.
The marketing department is responsible for updating the market statistics for smartphone
device manufacturers to align their operations with the market dynamics. The marketing
department is also responsible for providing inputs to manufacturers for any diversification or
market expansion. In addition, it also plays a significant role in product pricing and product
positioning.
As a part of the value chain, the marketing strategy connects the smartphone device
manufacturers to the market. As a result, manufacturers attach high significance to marketing
strategy as it has a high influence on their sustenance to market competition and profitability.
Exhibit 4: Marketing Strategies of Smartphone Device Manufacturers

Sales and Distribution Management

Sales and distribution management is responsible for reaching out to customers and generating
revenue for vendors and the market at large. It is responsible for channel selection, collective
feedback, final product inventory management, discounts, addressing claims and warranty,
selection of retailers, selection of retail channels and partnerships, and e-commerce sales.
The sales and distribution management functions also include categorizing devices based on
price, selection of retailers, selection of store type for sales execution, negotiation with retailers
and e-commerce vendors, stock clearing strategies, monitoring service and claims, and product
recalls.
Exhibit 5: Sales and Distribution Management by Smartphone Device

Manufacturers

Retailers and Customers

Retailers involve device retailers and service providers that serve the end-users of smartphones.
A retailer's profitability is small compared to a manufacturer's because of the high concentration
of manufacturers in the market. Network service providers provide SIM cards and data cards for
accessing the internet. In some countries such as the US, smartphone device retailers have
partnerships with network service providers. However, in countries such as India and China,
retailers and service providers are separate entities.
Exhibit 6: Smartphone Market in India: Sales and Distribution Value Chain

06.3 Supply Chain of Smartphones

The chart mentioned below presents the supply chain of smartphones. The supply chain shows
the flow of materials/components/devices from the suppliers' end to the consumers' end. This
also depicts the influence of the demand of smartphones on each of the entities involved in the
supply chain. As the end-users of smartphones are mostly individual customers, the demand
fluctuation in the market is extremely high, which also affects the supply chain.
Exhibit 7: Supply Chain of Smartphones

The flow of components in the supply chain of smartphones is controlled by smartphone

manufacturers as the smartphones manufactured depend on demand in the end-user market.
As there is high fluctuation in the end-user market, manufacturers tend to modify their
production plans to reduce the inventory cost at each level of the supply chain.
However, with the reduction in the product lifecycle of smartphones, it becomes very difficult for
the vendors to maintain low inventory levels in the supply chain. Also, the distributors in the
supply chain can be either company-owned or an autonomous unit based on a company's
strategic plans. Distributors are responsible for the penetration of products in the sales channel
and adhering to manufacturers' marketing strategies.
Retailers are classified by distributors based on criteria such as footfalls and popularity. Retailers
can be large-format stores or chain stores; however, their profitability relies on the sale of
smartphones irrespective of the brand. Thus, retailers tend to attach high significance where the
profit margins are high.
Consumers/end-users are categorized into three types: high spenders, price-sensitive customers,
and brand loyal customers. High spenders tend to purchase technologically advanced devices
and are also early adopters of advanced technologies. The customer base of high spenders is
very low; thus, they are given high importance by retailers. Price-sensitive customers tend to
compare various products of different brands and choose the one that has maximum value for
money. Brand loyal customers stick to one brand and tend to purchase all the products of the
same brand. One such example is the Apple iPhone and iPad, which is popular among
American customers.

06.4 Product Lifecycle of Smartphones

Exhibit 8: Product Lifecycle of Smartphones 2014

06.5 Smartphone BOM

The chart below presents various components that contribute to the cost of manufacturing a
smartphone. In addition, percentages for the various components are also mentioned in the
table below.
Exhibit 9: Smartphone BOM

Exhibit 10: List of Components by Contribution to Total Cost 2014
Sl. No. Component Contribution to Cost
1 NAND Flash 14.8%
2 Display 13.4%
3 Application Processor 11.4%
4 Baseband 8.7%
5 Touch Panel 7.4%
6 DRAM 6.7%
7 Camera Module 6.7%
8 Battery (Li Polymer) 4.0%
9 RF and FEM 3.4%
10 HDI PCB 3.4%
11 Power Amplifier 2.7%
12 PMIC 2.7%
13 Combo-chip (Wi-Fi/BT/FM) 2.7%
14 Touch Controller 2.0%
15 Gyroscope/Accelerometer 2.0%
16 GPS 1.3%
17 Image Sensors 1.3%
18 LCD Driver IC 1.3%
19 Camera Lens 1.3%
20 Compass 1.0%
21 MEMS Microphone 0.5%
22 Audio Codecs 0.5%
23 Speakers 0.4%

07. Market Landscape

07.1 Market Overview
The chart below represents the Global Smartphone market segmentation on the basis of OS and
screen size.
Exhibit 11: Global Smartphone Market Segmentation by OS and Screen Size
Android
iOS
By OS Windows
BlackBerry
Global Others
Smartphone
Market
Below 5.0 Inch
5.0-5.4 Inch
By Screen Size
5.5-5.9 Inch
6.0+ Inch

07.2 Market Size and Forecast by Revenue

The Global Smartphone market was valued at US$433.1 billion in 2014 and is expected to reach
US$638.8 billion by 2019, growing at a CAGR of 8.1 percent.
The Global Smartphone market is expected to experience impressive growth during the forecast
period with an increase in internet usage and the need for connectivity. The usage of
smartphone devices has evolved and they are now being used for multiple purposes. Also,
smartphones are increasingly being connected with lifestyle-related activities, which is also one
of the key factors expected to lead to the increased adoption of smartphones during the
forecast period.
Exhibit 12: Global Smartphone Market 2014-2019 (US$ billion)
The YoY growth in the Global Smartphone market is expected to witness a decline during the
forecast period. One of the key reasons for the decline in revenue is the declining ASP of
smartphones and increasing price wars among vendors. In 2013 and 2014, the Global
Smartphone market witnessed a large number of new entrants. These vendors offered
smartphones at lower prices than that of established vendors. This trend is expected to continue
and is expected to affect the YoY growth rate of the market during the forecast period.

07.3 Market Size and Forecast by Unit Shipments

The Global Smartphone market shipped 1.22 billion units of smartphones in 2014 and is expected
to ship 1.99 billion units by 2019, growing at a CAGR of 10.3 percent.
The unit shipments of smartphones are expected to increase during the forecast period. The
declining ASP of smartphones is one of the major reasons for the growing demand for
smartphones. Also, as enterprises are adopting the BYOD policy to enhance productivity, the
demand for smartphones is increasing. In addition, the growing adoption of smartphones by
individual consumers is another major factor contributing to the increased shipments of
smartphones.
Exhibit 13: Global Smartphone Market 2014-2019 (billion units)
The YoY growth rate in the Global Smartphone market is expected to witness a decline during
the forecast period. This is because leading markets such as the US and the UK are reaching
market saturation as well as high competition from tablets and other emerging computing
technologies. One of the challenges faced by smartphone vendors is the shift toward tablets
and other emerging computing technologies, which has a negative impact on smartphone
sales. Also, some of the emerging technologically advanced devices such as smartwatches and
wearable displays may also contribute to the declining YoY growth rate of smartphone
shipments during the forecast period.

07.4 ASP Trend

The chart below illustrates the expected ASP of smartphones during the forecast period. It is
expected that the ASP of smartphones will decline during the forecast period because of the
following factors:
 Availability of low-cost smartphones, especially in the APAC region

 Reduction in raw material prices
 Reduced shelf-life of smartphones, which requires frequent introduction of new models
Exhibit 14: ASP of Smartphones 2014-2019 (US$ per unit)

07.5 Five Forces Analysis
Bargaining Power of
Suppliers
(Moderate)
Vendors are highly
dependent on suppliers for
components such as
processors, NAND flash and
OS. Also, the supplier base for
components such as PCIMs,
ICs, and casings is high,
leading to the moderate
bargaining power of suppliers
Threat of Substitutes
(Moderate) Bargaining Power of
Buyers
Tablets are considered as Threat of Rivalry
the probable subtitutes for (Moderate)
(High)
smartphones. However, The bargaining power of
the threat of substitutes is The threat of rivalry is high buyers is moderate as they
moderate because of the because of the high have enough options to
cumbersome attributes of concentration of vendors choose from the global as
worldwide well as the domestic vendors.
tablets compared to
However, the only concern is
smartphones brand loyalty
Threat of New Entrants

(Moderate)
The probability of new players
to enter this market is
moderate because of the
strong positions of the leading
players in the market with
significant market shares. Also,
new brands are improving on
their brand value

Key
The impact of the five forces is graded on the basis of the intensity and duration of their
influence on the current market landscape. The magnitude of the impact has been categorized
as described below:
 Low - Negligible or no impact on the market landscape

 Moderate - Medium-level impact on the market
 Moderately High - Significant impact on the growth of the market
 High - Very high impact, with radical influence on the growth of the market

08. Market Segmentation by Application

08.1 Global Smartphone Market Segmentation by OS 2014-2019
On the basis of OS, the Global Smartphone market can be segmented into the following:
 Android
 iOS
 Windows Phone
 BlackBerry
 Others
The Android segment dominated the Global Smartphone market with a market share of 78.8
percent of the smartphones shipped in 2014. It was followed by the iOS segment with a market
share of 14.8 percent, the Windows Phone segment with a market share of 3.8 percent, and the
BlackBerry segment with a market share of 0.9 percent. The Others include Linux, Firefox, and
Bada, which accounted for a market share of 1.7 percent in 2014.
Exhibit 15: Global Smartphone Market Segmentation by OS 2014-2019

Exhibit 16: Global Smartphone Market Segmentation by OS 2014-2019 (billion units)
The contribution of the Android segment to the total market shipments is expected to decline;
however, it is still expected to maintain its dominant position in the market during the forecast
period. The reason for this is that Android targets the masses with budget smartphones that also
have a considerable number of features. Also, Android is used by most of the smartphone
manufacturers. Conversely, the iOS segment targets a niche market and its products are
relatively expensive. The Windows Phone and BlackBerry segments will also see a decline during
the forecast period because of the lack of demand in the market. However, the Others segment
is expected to experience growth during the forecast period.

Exhibit 17: ASP of Various OS-based Smartphones 2014-2019 (US$ per unit)
08.2 Global Android Smartphone Market

In terms of unit shipments, the Android Smartphone market contributed 78.8 percent of the
market share in 2014 and is expected to contribute 78.3 percent in 2019. The unit shipments of
Android smartphones totaled 0.96 billion units in 2014 and are expected to reach 1.56 billion units
by 2019, growing at a CAGR of 10.1 percent.
Android is an open-source OS and is easily customizable. Thus, Android has witnessed growth at
an exponential rate. Also, Android is being adopted by those smartphone vendors that are key
players in the market. A large number of smartphones available in the market are Android-
based and the adoption of Android is expected to witness an increase during the forecast
period. However, the contribution of Android-based smartphones is expected to decline during
the forecast period because of the expected decline in the sales of smartphones.

08.3 Global iOS Smartphone Market

In terms of unit shipments, the Global iOS Smartphone market contributed 14.8 percent in 2014
and is expected to contribute 14.3 percent by 2019. The unit shipments of iOS smartphones
totaled 0.18 billion units in 2014 and are expected to reach 0.28 billion units by 2019, growing at
a CAGR of 9.4 percent.
iOS is specific to Apple smartphones. The user interface of iOS is based on the direct
manipulation concept. In addition, apps and multi-touch gestures make iOS competitive in the
market. It concentrates more on performance rather than appearance. However, the
contribution of iOS to the Global Smartphone market is expected to be affected during the
forecast period because of the high cost of Apple smartphones.
08.4 Global Windows Smartphone Market

In terms of unit shipments, the Global Windows Smartphone market contributed 3.8 percent in
2014 and is expected to contribute 3.3 percent by 2019. The unit shipments of Windows
smartphones totaled 0.05 billion units in 2014 and are expected to reach 0.07 billion units by
2019, growing at a CAGR of 7.1 percent.
Recent changes in the Windows OS has had a positive impact on its total market share. A user-
friendly and colorful interface has fuelled the adoption of Windows OS. One of the prominent
brands to use Windows OS in its smartphone models is Nokia. Also, the contribution from
Windows OS is expected to decline because of decreased demand from consumers.

08.5 Global BlackBerry Smartphone Market

In terms of unit shipments, the Global BlackBerry Smartphone market contributed 0.9 percent in
2014 and is expected to contribute 0.4 percent by 2019. The unit shipments of BlackBerry
smartphones totaled 0.011 billion units in 2014 and are expected to reach 0.008 billion units by
2019, declining at a CAGR of 6.3 percent.
The sales of BlackBerry smartphones are affected because of the emergence of a large number
of smartphone vendors in the market. The unique value proposition of BlackBerry smartphones
has not gained traction in the market because of the lack of offerings compared to other
smartphone brands. It is expected that the contribution of BlackBerry smartphones will decline
during the forecast period.
08.6 Global Other Smartphone Market

In terms of unit shipments, the Global Other Smartphone market contributed 1.7 percent in 2014
and is expected to contribute 3.7 percent by 2019. The unit shipments of other smartphones
totaled 0.02 billion units in 2014 and are expected to reach 0.07 billion units by 2019, growing at
a CAGR of 28.7 percent.
Some smartphone manufacturers are integrating OS such as Linux and Firefox in their devices to
enhance their value proposition. However, the acceptance rate of new OS in consumers is not
yet known, and, also, it is too early to predict. But, it is expected that the introduction of new OS
will have a positive impact on the market, and thus the CAGR is expected to be high.

09. Market Segmentation by Screen Size

09.1 Global Smartphone Market by Screen Size 2014-2019
In terms of screen size, the Global Smartphone market can be segmented into the following:
 Below 5.0 Inch

 5.0-5.4 Inch
 5.5-5.9 Inch
 6.0+ Inch
The Below 5.0 Inch segment dominated the Global Smartphone market contributing 62 percent
of the smartphones shipped in 2014. It was followed by the 5.0-5.4 Inch segment with 26 percent,
the 5.5-5.9 Inch segment with 8 percent, and the 6.0+ Inch segment with 4 percent of the total
smartphones shipped in 2014.
Exhibit 18: Global Smartphone Market Segmentation by Screen Size 2014-2019

Exhibit 19: Global Smartphone Market Segmentation by Screen Size 2014-2019 (billion
units)
09.2 Global Smartphone Market Segmentation: Below 5.0 Inch

In terms of unit shipments, the Below 5.0 Inch segment contributed 62 percent in 2014 and is
expected to contribute 28 percent by 2019. The unit shipments of below 5.0 inch screen size
smartphones were 0.76 billion units in 2014 and are expected to reach 0.56 billion units by 2019,
declining at a CAGR of 6.0 percent.
Increased demand for large-screen size smartphones is one of the key reasons for the declining
demand for below 5.0 inch screen size smartphones.

09.3 Global Smartphone Market Segmentation: 5.0-5.4 Inch

In terms of unit shipments, the 5.0-5.4 Inch segment contributed 26 percent in 2014 and is
expected to contribute 12 percent by 2019. The unit shipments of 5.5-5.4 screen size
declining at a CAGR of 5.6 percent.
Low-end smartphones with standard features that target highly price-sensitive consumers fall into
this category. The reason for the declining demand of this segment is the shifting preference of
consumers toward larger-screen size smartphones, which is expected to continue during the
forecast period.
09.4 Global Smartphone Market Segmentation: 5.5-5.9 Inch

In terms of unit shipments, the 5.5-5.9 Inch segment contributed 8 percent in 2014 and is
expected to contribute 32 percent by 2019. The unit shipments of 5.5-5.9 screen size
growing at a CAGR of 45.4 percent.
The large screen size of smartphones in this segment allows consumers to read documents, play
games, and use entertainment applications seamlessly on their phones. This segment has gained
high traction and is expected to continue during the forecast period. This segment of
smartphones is also termed as phablets and has gained high popularity among consumers in the
market.
09.5 Global Smartphone Market Segmentation: 6.0+ Inch

In terms of unit shipments, the 6.0+ Inch segment contributed 4 percent in 2014 and is expected
to contribute 28 percent by 2019. The unit shipments of 6.0+ inch smartphones were 0.05 billion
units in 2014 and are expected to reach 0.56 billion units by 2019, growing at a CAGR of 62.6
percent.
Smartphones with 6.0+ inch have screen sizes close to those of tablets and are expected to
have high penetration among consumers during the forecast period. Large-screen size
smartphones allow users to use a wide range of applications easily with enhanced portability
and visibility. Thus, this segment will make a higher contribution to the Global Smartphone market
during the forecast period than the other segments.

10. Geographical Segmentation

10.1 Global Smartphone Market by Geographical Segmentation 2014-2019
The Global Smartphone market is diversified geographically across the APAC region, the
Americas, and the EMEA region. The APAC region dominated the Global Smartphone market
with a market share of 53.1 percent in 2014. It was followed by the Americas with a market share
of 23.5 percent and the EMEA region with a market share of 23.4 percent.
Exhibit 20: Global Smartphone Market by Geographical Segmentation 2014-2019

Exhibit 21: Global Smartphone Market by Geographical Segmentation 2014-2019

(billion units)
10.2 Smartphone Market in APAC Region

The Smartphone market in the APAC region shipped 0.65 billion units in 2014 and is expected to
reach 1.30 billion units by 2019, growing at a CAGR of 14.9 percent.
One of the key reasons for the high growth of smartphone shipments in the APAC region is the
availability of low-cost smartphones in countries such as India and China, where customers are
price-sensitive. In addition, increased usage of e-commerce portals, growing disposable
income, an increase in internet penetration, growing urbanization, and a surge in the number of
mobile broadband subscriptions are some of the major factors that are expected to fuel the
adoption of smartphones in the region.

10.3 Smartphone Market in Americas

The Smartphone market in the Americas shipped 0.29 billion units in 2014 and is expected to
The growth in the Americas is less than the APAC and the EMEA regions because of market
saturation and slow subscription growth. However, this region is expected to witness strong
growth, driven by the deployment of new services and applications that lead to an increase in
mobile broadband subscriptions. Mobile operators are expected to invest significantly in building
LTE networks and increasing capacity. In addition, the frequent rollout of innovative prepaid
daily plans by network operators is expected to increase the low-income customer base,
particularly households, to gain access to the internet. All these factors are expected to provide
a much-needed thrust to the Smartphone market in the Americas during the forecast period.
However, the US market is reaching its saturation, which could inhibit the growth in the Americas
as the US is one of the largest markets for smartphones.
10.4 Smartphone Market in EMEA Region

The Smartphone market in the EMEA region shipped 0.29 billion units in 2014 and is expected to
The growth in this region is predominantly because of the increase in the number of mobile
broadband subscriptions and increased investment in new technologies and services such as
LTE networks. In addition, expanding content and service offerings, new software and user
interfaces, and easily accessible distribution channels together with a decline in the ASP of
smartphones are expected to fuel the demand for smartphones in the region during the
forecast period.

10.5 ASP by Region

The chart below illustrates the change expected in the ASP of smartphones in the APAC region,
the Americas, and the EMEA region during the forecast period 2014-2019. It can be depicted
from the chart that the ASP of smartphones in the APAC region is lower than the other regions.
Also, the expected decline in the ASP will take place at a higher pace in the APAC region than
the other regions. The reason is the high concentration of local vendors in the APAC region
offering smartphones at very low prices. In the Americas and the EMEA region, the
concentration of vendors is expected to be low. The dominance of the major vendors in these
regions will be maintained despite the increase in the concentration of other vendors. Thus, the
ASP of smartphones will not decline as rapidly in the EMEA region and the Americas as in the
APAC region.
Exhibit 22: ASP of Smartphones by Region 2014 and 2019 (US$ per unit)

11. Key Leading Countries

The leading countries in the Global Smartphones market in 2014 are given below:
11.1 China
China is one of the major revenue contributors in the Global Smartphone market. The country
held a market share of 33.1 percent in 2014. The majority of the smartphones in the Global
Smartphone market are shipped from China. The huge population, the great potential for
market growth, and the low cost of smartphones are the major factors contributing to the
growth of the Smartphone market in China.
Major Driver Major Challenge Major Trend
•Availability of Low-cost •Intense Competition •Increased Demand for

Smartphones from Regional Vendors LTE Smartphones

11.2 US
The US is the second major revenue contributor and held the second position in terms of unit
shipment to the Global Smartphone market in 2014, accounting for a 13.9 percent share. Some
of the major drivers fostering the growth of the market in the US are the introduction of new
services and applications and the expansion of 4G networks.
•Introduction of 4G •Price Wars among •Increase in Popularity of

Networks Vendors Large Screen Size
Smartphones
11.3 UK
The UK contributed a share of 4.2 percent to the Global Smartphone market in 2014. The
shipments of smartphones in the UK are growing rapidly as consumers in the country are
increasingly adopting smartphones to derive benefits such as high operator subsidies that are
being provided along with long-term postpaid contracts.
•High Operator Subsidies •Operators' Flexibility to •Increase in Number of

Modify Subsidy Plans Postpaid Contracts
11.4 India
The Smartphone market in India is a potential market for smartphone manufacturers and had a
market share of 3.7 percent in 2014. One of the major drivers in this market is the availability of
low-priced smartphones and growing internet penetration. Also, there is the provision of
affordable service plans by network operators in the country. With respect to smartphone
consumption, the Indian Smartphone market is expected to hold the fourth position among the
leading countries.
•Low-priced •Increased Competition •Entrance of Foreign

Smartphones from Local Vendors Players

11.5 Brazil
Brazil is one of the fastest growing countries in terms of adoption of smartphones and held a
share of 3.6 percent in 2014. One of the key factors driving this market is the increased
penetration of social media. The Smartphone market in Brazil is expected to witness an
impressive growth rate during the forecast period.
•Increased Penetration •Low Disposable Income •Transition from Feature

of Social Media Phones to Smartphones
11.6 Japan
The growth of this market is expected to increase because of the increase in the number of
mobile broadband subscribers and mobile internet users. In addition, the introduction of LTE
networks and new applications is expected to fuel the demand for smartphones in Japan. The
country's share to the Global Smartphone market in 2014 was 3.5 percent.
•Availability of Low- •Competition from Local •Opaque Pricing

priced Smartphones Vendors Structure

12. Buying Criteria

Parameter Details End-user Segments Significance Attached
Battery Smartphones should have Non-business Low High

Standby a long battery life Customers 1 2 3 4 5
The brand of a Low High
smartphone is often a Non-business 1 2 3 4 5
Brand
deciding factor for Customers
purchase
The internal storage Low High
Internal Non-business
capacity of smartphones 1 2 3 4 5
Memory Customers
should be high
The efficacy of Low High
Non-business
Performance smartphones should be 1 2 3 4 5
Customers
high without malfunctions
As price is a deciding Low High
Price factor for consumers, Non-business 1 2 3 4 5
smartphones should be Customers
affordable
Screen size is an important Low High
Screen Size Non-business
factor when purchasing a 1 2 3 4 5
Customers
smartphone
User- Smartphones should be Non-business Low High
friendliness easy to operate Customers 1 2 3 4 5
Key
The impact of the buying criteria is graded on the basis of the intensity and duration of their
influence on the current market landscape. The magnitude of the impact has been categorized
as described below:


13. Market Growth Drivers

Some of the major drivers in the Global Smartphone market are discussed below:
 Declining ASP of Smartphones

 Increase in Popularity of 3G/4G Networks
 Availability of Low-cost Smartphones in Emerging Markets
 Increase in Number of Internet Users
 Rapid Advances in Technology
 User-friendly OS
Declining ASP of Smartphones

Over a period of time, smartphones have become a product of the masses rather than the
product of the elite class because of affordability. Thus, the recent decline in the price of
smartphones has given a boon to the market. The ASP of smartphones worldwide is expected to
decline from US$355 in 2014 to US$321 in 2019. Also, the APAC region has emerged as a driving
force behind the increase in smartphone sales. The prices of smartphones in the APAC region
are expected to decline from US$248 in 2014 to US$201 in 2019. Therefore, the continual
decrease in smartphone prices is a major driver that will contribute to the growth of the Global
Smartphones market during the forecast period.
Increase in Popularity of 3G/4G Networks

Commoditization and easy accessibility of mobile internet networks (3G/4G) has led to the high
usage of mobile internet on smartphones. As commoditization continues, internet penetration
will reach the remote and rural parts of various countries worldwide.
Availability of Low-cost Smartphones in Emerging Markets

In emerging markets such as China, India, and Brazil, price sensitivity plays a crucial role. This has
led to competition among the vendors in the market, which has led manufacturers and regional
vendors to offer smartphones at a low ASP. Thus, apart from brand loyalty, consumers now have
a wide range of smartphones to choose from within the same price range. Vendors are trying to
decrease prices and still maintain their profits just to stay ahead of the competition.
Increase in Number of Internet Users

The increase in the number of internet users has had a positive impact on the growth of the
Global Smartphones market as potential consumers of smartphones like to stay connected to
the internet for various reasons, especially for social networking. In addition, the penetration of
social media is increasing rapidly and consumers are constantly accessing social networking

sites such as Twitter and Facebook. Besides social networking, consumers like browsing, checking
emails, and staying up to date with the latest news and current affairs. Since smartphones
provide all these facilities and, above all, the convenience of mobility, there has been an
increase in the adoption of smartphones in recent years.
Rapid Advances in Technology

When cellphones were introduced in the market, the basic purpose of operation was making a
voice call and sending messages to cellphone users. However, after the introduction of
smartphones and tablets, they are being used for many applications, such as online chat, video
calling, and conference calling.
However, rapid advances in technology will make many smartphones obsolete soon. To counter
this, vendors are focusing on introducing advanced smartphones that use laser projections by
virtual keypads, AR, LTE, NFC, flexible displays, fast processors, and high-resolution cameras.
Smartphones are now being designed with a focus on making them user-centric, thus providing
easy accessibility, durability, and portability.
User-friendly OS
An OS is an important feature of a smartphone. A user-friendly OS in a smartphone adds to its
USP. The OS of a smartphone is designed keeping in mind the requirements of consumers.
Currently, consumers have a wide range of OSs to choose from, such as Android, iOS, Windows,
BlackBerry, and Linux. Android is the leading OS in the market with a share of 78.8 percent,
followed by iOS with a share of 14.8 percent.

14. Drivers and their Impact

Impact on Key Customer
Category
Driver
Non-business Customers
Declining ASP of Low High

Smartphones 1 2 3 4 5
Increase in Popularity of Low High
3G/4G Networks 1 2 3 4 5
Availability of Low-cost Low High
Smartphones in Emerging 1 2 3 4 5
Markets
Increase in Number of Low High
Internet Users 1 2 3 4 5
Rapid Advances in Low High
Technology 1 2 3 4 5
Low High
User-friendly OS
1 2 3 4 5
Impact on Geography
Driver
Americas EMEA APAC
Declining ASP of Low High Low High Low High

Smartphones 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Increase in Popularity of Low High Low High Low High
3G/4G Networks 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Availability of Low-cost Low High Low High Low High
Smartphones in Emerging 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Markets
Increase in Number of Low High Low High Low High
Internet Users 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Rapid Advances in Low High Low High Low High
Technology 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Low High Low High Low High
User-friendly OS
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

Key
The impact of the drivers is graded on the basis of the intensity and duration of their influence on
the current market landscape. The magnitude of the impact has been categorized as
described below:


15. Market Challenges

Some of the major challenges in the Global Smartphone market are discussed below:
 Security Threats
 High Production Cost
 Reduced Time-to-market
 Complexity in Usage
 Increased Competition among Vendors
 Network Infrastructure
Security Threats
Smartphones have become a dispensable part of our lives. They are increasingly used for web
browsing, monetary transactions, emailing, and social media. People often use them to store
passwords, contact information, and other important data. Thus, smartphones store a large
amount of sensitive data that attract hackers. Cyber threats have increased for social media as
a lot of personal information is stored there. Unlike PCs, most of the smartphone OS do not have
security software to protect the sensitive data. Hence, they can easily be infected by Trojans,
worms, viruses, Adware, and BOTNET. Thus, the major challenge for vendors is to protect
smartphones from security threats.
High Production Cost

All vendors in the market strive to attain high profit margins by reducing the total cost incurred.
However, the cost of production for smartphones is increasing YoY. Vendors invest huge
amounts of capital in the R&D of smart devices with high functionalities and features. In addition,
they also invest huge capital in marketing their products because of the stiff competition in the
market. Smartphones vendors cannot cut down these costs as it affects their profit margins.
Hence, the high cost of production poses a major challenge for the growth of the Global
Smartphone market.
Reduced Time-to-market
The Global Smartphone market is under constant pressure to regularly launch new and
advanced versions of smartphones with the latest technology, new designs, and functionalities.
Vendors need to overcome time constraints and develop advanced versions of smartphones at
regular intervals. Any delay in the design or development process or testing phase of these
smartphones increases the production cost. Some of the factors responsible for delays are
complex design requirements, shortage of resources, and lack of technical expertise. These

factors might affect the credibility and marketability of smartphones. Thus, reduced time-to-
market is one of the major challenges for the Global Smartphone market.
Complexity in Usage
User-friendliness is one of the most important features that consumers look for in a smartphone.
Consumers expect a satisfactory experience when operating and accessing desired
applications through smartphones. However, such factors are not supported by a few
smartphones in the market as they are complex in design and interface. Hence, if a smartphone
is simple in its usage, it is preferred by consumers. Therefore, global smartphone vendors need to
focus on increasing user-friendly features and incorporate simple designs in a smartphone.
Increased Competition among Vendors

The vendors in this market are competing in terms of pricing by offering smartphones at lower
prices than their competitors. The high potential of the Global Smartphone market has attracted
many new vendors that have established a strong brand image against the global brands.
Therefore, existing vendors are facing intense competition from new vendors in terms of pricing
and technology, as these new vendors operate in key potential markets with strong
technological know-how, and well-established sales and distribution networks. Also, new vendors
in the market have adopted low-cost manufacturing techniques that tend to reduce
manufacturing costs and provide them with a huge profit margin. As a result, global vendors
tend to enter into price wars with new vendors, which reduces the profit margins of global
vendors. The declining ASP of smartphones because of these price wars also reduces the
profitability of the market at large. Thus, intense competition among vendors is a major
challenge that is expected to have an effect on the growth of the market during the forecast
period.
Network Infrastructure
Smartphones work on wireless internet connections that require high bandwidth for data
transfer. A direct cable connection is much faster than a mobile internet connection that uses
technologies such as GPRS, EDGE, HSDPA, and HSUPA 3G. These networks are limited to the
range of commercial cellphone towers. There are wireless LANs with high speed and that are
inexpensive, but they have a very limited range. Also, the availability of bandwidth is limited to
the developed regions of a country, limiting the adoption of smartphones in rural regions. In
addition, the high cost associated with high bandwidth is another factor affecting the Global
Smartphone market. Though 4G or LTE has been introduced for accessing high-speed mobile
internet on smartphones, solving the problem of bandwidth, network infrastructure remains a
deterrent.

16. Impact of Drivers and Challenges
Key
The impact of the drivers and challenges is graded on the basis of the intensity and duration of
their influence on the current market landscape. The magnitude of the impact has been
categorized as described below:

 Moderately High - Significant impact on the growth of the market

17. Market Trends

Some of the key trends emerging in the Global Smartphone market are discussed below:
 Increase in Demand for Large-screen Size Phones

 Increase in Popularity of E-commerce Portals
 Increase in Demand for LTE Smartphones
 Availability of High-storage Capacity Smartphones
 Introduction of High-performance Multi-core processors
Increase in Demand for Large-screen Size Phones

In recent years, smartphones have undergone radical changes in aesthetics as well as functions.
The Global Smartphone market is witnessing a trend toward large-screen size smartphones
(phablets), particularly in the range of 5-7 inch. Consumers worldwide are using smartphones for
many purposes, such as browsing the web, making monetary transactions, sending emails, using
social media, watching videos, playing games, and downloading apps. Thus, because of the
consumption of a large amount of content online, consumers are demanding bigger and better
displays. Large-screen smartphones offer users a better and enhanced overall experience
compared to their counterparts. As a result, smartphone vendors are positioning large screens as
one of their USPs. For instance, Samsung Galaxy S5, Google Nexus 6, and even the latest Apple
iPhone 6 and 6 Plus market their large screens as one of their USPs.
Increase in Popularity of E-commerce Portals

The emergence of e-commerce portals has had a positive impact on consumers as it gives them
a platform to compare smartphone prices and then make the best choice. Apart from the
prices, they can also compare a smartphone's specification and then choose accordingly.
These portals also allow consumers to buy and sell their smartphones online. In this way, they
have a wider reach compared to brick and mortar stores. Vendors worldwide are also choosing
e-commerce portals to ship their products overseas.
Increase in Demand for LTE Smartphones

The increased global deployment of next-generation LTE wireless networks such as 3G and 4G
has led to exponential growth in network traffic. LTE networks enable the transmission of data
through wireless networks. As 4G technology continues to be rolled out worldwide, there is a
growing need for LTE-enabled smartphones in low price ranges. While LTE is still in its initial stage
of implementation in many parts of the world, network operators have started to test a
technology called carrier aggregation that offers faster bandwidth. By 2014, many smartphones

were equipped with LTE, such as Samsung's Galaxy S5, Apple's iPhone 6 and 6 Plus, HTC's Desire
820, and Xiaomi's MI3.
Availability of High-storage Capacity Smartphones

Earlier, smartphones were integrated with an internal memory of 2GB and came with an external
memory card slot for additional storage. Currently, the majority of the smartphone vendors are
providing smartphones with enhanced internal memory ranging from 8GB to 64GB, eliminating
the need for an external memory card slot. As a result, consumers can store all their data and
applications in internal memory without having to buy an external memory card. This additional
feature is proving to be profitable. Hence, the introduction of high-storage capacity
smartphones is an emerging trend that is being adopted by the majority of smartphone vendors.
Introduction of High-performance Multi-core Processors

The increased functionality of smartphones requires high-performance application processors.
Consumers perform numerous tasks such as web browsing, video playback, mobile gaming, and
SMS on their phones. Multi-core processors enable smartphones to perform these tasks and
enhance their performance. The introduction of multi-core processors, particularly quad-core
processors, has enabled smartphone vendors to produce smartphones that are technologically
competitive, yet cost significantly less. Sony's Xperia Z and Samsung's Grand S are both powered
by a Snapdragon S4 Pro processor from Qualcomm, while Huawei relies on a quad-core
processor developed in-house for Ascend D2. There are some other smartphones that are
integrated with octa-core processors as well. Thus, high-performance multi-core processors is
one of the major trends that is expected to drive the demand for smartphones during the
forecast period.

18. Trends and their Impact
Key
The impact of the trends is graded on the basis of the intensity and duration of their influence on
the current market landscape. The magnitude of the impact has been categorized as
described below:


19. Vendor Landscape

19.1 Competitive Scenario
The Global Smartphone market is highly fragmented because of the presence of a large
number of vendors. The competition in this market is high because of the strong positions of
existing vendors in the market. Also, it is expected that competition among vendors will intensify
during the forecast period because of advances in technology in the Smartphone industry.
Apart from this, regional vendors are giving tough competition to the global vendors in the
market.
There is significant market potential in North America, Western Europe, and the APAC region.
One of the major reasons for this is the increased adoption of smartphones among enterprises
and individual consumers. As the functionalities of smartphones increase, high demand is
expected. The market is dominated by six key players: Apple, Huawei Technologies, Lenovo, LG,
Samsung Electronics, and Xiaomi.
19.2 Mergers and Acquisitions

 October 2014: Lenovo acquires Motorola from Google. The acquisition is aimed at increasing
Lenovo's market share in the US
 July 2014: Apple enters into a partnership with IBM for developing applications and business
services for Apple
 July 2014: BlackBerry acquires Secusmart, a German-based company. The acquisition is
aimed at increasing mobile security for BlackBerry to retain its customers
 July 2014: Google acquires Twitch, which is focused on live streaming of video games
 June 2014: Facebook acquires Pryte. Pryte is a Finnish company that enables a user to
download bundles of data in just one click without buying a regular mobile data plan. The
acquisition is aimed at getting more followers for Facebook by giving them user-affordable
connectivity
 June 2014: Samsung Electronics acquires Shelby.tv. The acquisition is aimed to create an
extremely innovative and unique bespoke video platform for Samsung Electronics customers
 June 2014: Google acquires SkyBox Imaging for US$500 million. The acquisition is aimed at
helping Google provide better-quality maps using SkyBox's satellite data
 May 2014: Apple acquires Beats Electronics for US$3 billion. The acquisition is aimed at
strengthening Apple's music-related hardware products
 May 2014: Google acquires Divide. The acquisition was to adopt the technology of Divide to
enhance the Android OS

 April 2014: Microsoft acquires Nokia for US$7 billion for enhancing Microsoft's work on both
firmware and hardware
 April 2014: Apple acquires Novauris Technologies. The acquisition is aimed at enhancing
Apple's speech recognition automated assistance
 January 2014: Apple acquires SnappyCam. The acquisition is aimed at enhancing iPhone
cameras' functioning capabilities
 May 2012: Google acquires Motorola for US$12.5 billion, aimed at acquiring the patents of
Motorola
19.3 Market Share Analysis 2014

Exhibit 23: Global Smartphone Market by Vendor Segmentation 2014

19.3.1 Apple
Apple's strategy is to offer its customers the best computing experience through its innovative
hardware, software, and internet offerings. The company believes in continual investment in
R&D, marketing, and advertising. It focuses on enhancing and expanding its retail and online
stores and its third-party distribution network. With this strategy in mind, the company aims to
effectively reach more customers and provide them with a high-quality sales and post-sales
support experience. Also, it is working hard to expand its geographical presence in emerging
markets for smartphones, such as India and China.
19.3.2 Huawei Technologies

Huawei Technologies adopts a low-cost differentiator strategy. The company's marketing
strategy is focused on offering low-cost smartphones and rapidly gaining market share,
especially in emerging markets. Also, it focuses on innovation and invests heavily to upgrade
technologies and acquire new capabilities to stay ahead of the demand curve.
19.3.3 Lenovo
Lenovo's strategy is to expand its geographical presence and capture potential markets for
smartphones. The company is committed to deliver innovative and differentiated products to its
customers. It has refined its front-end structure to become faster, more efficient, more
innovative, and implement its strategy in every key market. The company focuses on scaling its
growth and controlling costs to attain sustainable growth in the future.
19.3.4 LG
LG's strategy is to offer a diversified portfolio of smartphone models. The company also aims to
boost its manufacturing capability and focus more on quality. It focuses on its R&D process and
engineering, and continuously invests to leverage its technology for better sales. The company
works closely with affiliated companies such as LG Chem, LG Display, and LG Innotek to
capitalize on its resources and expand its product portfolio. Also, it has reworked on its
distribution strategy and is planning to increase its distribution channels to address the strong
demand for smartphones worldwide. The company has already gained prominence in the US
and European markets, but strives hard to survive in emerging markets such as India and China.
19.3.5 Samsung Electronics

Samsung Electronic's customized and region-specific marketing strategy has helped the
company enhance its product portfolio and introduce premium products. This has resulted in
increased sales and high profits. In addition, the company also focuses on increasing its

profitability by maintaining a stable growth rate, which can be achieved through further
diversification of its Smartphone businesses. It has also adopted the strategy of maintaining a
reliable credit rating to avoid major fluctuations in operating profits.
19.4 Other Prominent Vendors

Other prominent vendors in the Global Smartphone market are listed below:
19.4.1 ASUS
ASUS is an emerging leading contributor in the Global Smartphone market, and is one of the
global leaders in the Global Tablet market. The company believes in creating innovative
solutions. It also plans to enhance its technological strengths, which will help it gain more market
share. One of its growth strategies is to continuously expand its product portfolio by focusing on
innovation, perfection, and costs. The company primarily focuses on its R&D process and
engineering, and continuously invests to leverage its technology for better sales.
19.4.2 Coolpad
Coolpad is a global provider of smartphones and is the third biggest smartphone maker by sales
in China. It is also one of the first smartphone makers to offer high-speed 4G smartphones in
China. The company is now focused on expanding overseas to drive its growth.
19.4.3 Gionee
Gionee focuses on the R&D, production, and sales of cellular mobile devices. The company has
started focusing on slim smartphone designs; it held the title of owning the slimmest smartphone
in the market in 2014. Rather than designing smartphones just as a communication device, the
company designs trendy and fashionable models.
19.4.4 HTC
HTC designs, manufactures, assembles, processes, and sells smartphones in Taiwan and globally.
The company has gained traction only in the APAC region as it is the only region where it has
registered positive growth. Also, its strong decline in the Americas is a major reason for its global
downfall.

19.4.5 Micromax
Micromax is an India-based company and is currently a key player in the Global Smartphone
market. The company has well-established sales and distribution networks in India and in the key
potential markets. It positions its products as an extension to the youths' lifestyle and dynamism.
This strategy has worked in India, and this is also expected to fuel its share in other markets as
well.
19.4.6 OnePlus
OnePlus is a recent entry in the Global Smartphone market, and is established in the APAC
region. The company gained high traction among consumers after the launch of its first model in
the market, which had advanced features. Also, it has followed a strategy of selling its products
through e-commerce portals to gain high penetration in potential markets. In the next few years,
the company is expected to gain a dominant position in the market.
19.4.7 Sony
Sony manufactures and sells smartphones under the brand name Xperia that operates on
Google's Android. To retain its position in the Global Smartphone market, the company has to
lower prices and rebuild its marketing strategies to boost unit sales.
19.4.8 TCL Communication Technology

TCL Communication Technology designs, manufactures, and markets its portfolio of products
under two brand names: TCL and ALCATEL ONE TOUCH. It focuses on delivering low-cost
smartphones, thus improving the quality of its cellphones each year.
19.4.9 Xiaomi
Xiaomi is emerging as one of the top contenders in the market in the three years of its existence.
The company does not focus on hardware profits, instead it focuses on offering services to its
customers to have a strong customer base. China and other emerging markets are the targets
of the company. The company's strategy is to sell high-end smartphone devices at reasonable
prices. It captured its core audience by positioning itself as an online brand, offering top specs
at affordable prices. Apart from thin profit margins, the company sells the same phones for a
longer period compared to its competitors, thus providing more flexibility to sell its accessories
and attain profits. Also, the OS used in the phones is a customized version of Android, which
makes it different from the other Android operating phones in the market.

19.4.10 ZTE
ZTE is one of the top five vendors in the Smartphone market in China. The company has recently
gained a huge share in the US market. However, security concerns and perceptions of inferior
quality of Chinese brands are problems affecting its image in the global market.

20. Key Vendor Analysis

20.1 Apple
20.1.1 Key Facts
Company Details Description
Stock Listings  NASDAQ
Ticker Symbol  AAPL

20.1.2 Business Overview

In terms of revenue, Apple is the world's second largest IT company. The company was
incorporated in 1977 as a PC developer and manufacturer and is headquartered in Cupertino,
California, US. It offers PCs, mobile devices, OS, related software and applications, and
peripherals.
The company's key product offerings are classified under the iPhone, iPad, Mac, iTunes,
Software, and Services, Accessories, and iPod segments. It offers its own OS, iOS and OS X,
various application software services including iWork and iLife, and Apple TV. In addition, it
distributes third-party digital content and applications through its iTunes Store and App Store.
As of September 2013, the company had about 80,300 employees working across the Americas,
Europe, and the APAC region. It has a robust operational network of more than 425 retail stores
in 14 countries and online stores in over 50 countries. The company invests heavily in R&D (US$3.4
billion in FY2012 and US$4.5 billion in FY2013) to develop the world's most innovative products
and solutions. According to Forbes, as of May 2014 the company was the world's most valuable
brand among 2,000 global companies. It is also the largest publicly traded company in terms of
market capitalization with US$483.1 billion as of May 2014.
The company has reported strong financial performance since FY2011. It generated net sales
revenue of US$108.25 billion in FY2011, US$156.51 billion in FY2012 and US$170.91 billion in FY2013.

20.1.3 Product Segmentation by Revenue

Exhibit 25: Product Segmentation of Apple by Revenue 2012 and 2013 (US$ billion)

20.1.4 Geographical Segmentation by Revenue

Exhibit 26: Geographical Segmentation of Apple by Revenue 2013
 The Others segment includes the retail operations of the company's retail stores in 13
countries, including the US
 Greater China comprises China, Hong Kong, and Taiwan
20.1.5 Business Strategy

Operational Strategy
The company is focusing on the following strategic areas:
 Continuous investment in R&D and marketing to develop and sell unique products and
solutions
 Expanding its international presence by building its own retail and online stores and
enhancing its third-party distribution network
 Expanding its business offerings by designing and developing innovative hardware, OS,
application software, and services

20.1.6 Recent Developments

 June 2014: Launches a new 21.5-inch iMac desktop

 June 2014: Launches a new mobile OS, iOS8, with new
features and applications
 May 2014: Acquires Beats Music, a streaming music
service, and Beats Electronics, a manufacturer of
audio products
 April 2014: Introduces the iPad Air and iPad Mini with
Key Highlights
Retina Display and TD-LTE capabilities
 February 2014: Launches a free internet radio service,
iTunes Radio, in Australia
 December 2013: Enters into a multi-year agreement
with China Mobile to sell iPhones in China
 December 2013: Unveils a new Mac Pro built with
advanced technology and features

20.1.7 SWOT Analysis

20.2 Lenovo
20.2.1 Key Facts
Stock Listings  HKSE
Ticker Symbol  992.hk


Lenovo was established in 1984 in Beijing, China. The company is headquartered in Morrisville,
North Carolina, US. The company's major business segments are Desktop Computers, Notebook
Computers, Mobile Internet and Digital Home, and Other Goods and Services. Its business
portfolio includes PCs, tablet PCs, mobile handsets, workstations, servers, electronic storage
devices, IT management software, and smart televisions.
Lenovo is one of the world's leading personal technology companies. Lenovo was the world's
second-largest PC vendor in 2012. The company has its operations spread in over 60 countries,
and it sells its products in more than 160 countries. The company has operation centers in Beijing,
Raleigh, and Paris. The company's main marketing center is located in Bangalore, India. The
company owns research centers in Yokohama, Japan; Beijing, Shanghai, and Shenzhen, China;
and Raleigh, North Carolina. The company has a workforce of 54,000 employees globally, of
which about 1,700 are designers.
20.2.3 Product Segmentation by Revenue 2013

Exhibit 27: Lenovo: Product Segmentation by Revenue 2013

20.2.4 Geographical Segmentation by Revenue 2013

Exhibit 28: Lenovo: Geographical Segmentation by Revenue 2013

Lenovo is focusing on the following strategic areas:
 Lenovo will expand its offerings in cloud computing, cloud services, and cloud storage
 The next level of products will include applications around security, synchronization, and
clouds
 More innovations in many components such as biometric technology, gesture and voice
control, and display technologies


 Lenovo Yoga - Y, Z Series, Flex - S, G Series, ThinkPad -

W, X Series (Portable PCs)
Product Portfolio
 Vibe Series - K, S, P, A (Smartphones)
 Yoga - A Series, ThinkPad 8, 10 (Tablets)
 June 27, 2014: Launches A7-30, a multi-media tablet

 March 18, 2014: Unveils Tiny Desktop - ThinkCentre M73
Recent Product Launches
 January 10, 2014: Debuts A10, an ultra-portable
Android notebook
 June 25, 2014: Lenovo India receives Golden Peacock

Award for Innovative Customer Service
Key Highlights
 January 24, 2014: Lenovo sweeps CES 2014, with 61
awards


20.3 LG
20.3.1 Key Facts
Stock Listings Korean Stock Exchange
Ticker Symbol 066570


LG was incorporated in 1958, and is headquartered in Seoul, South Korea. LG focuses on the
design, manufacturing, and selling of electronics under the brand name LG. LG focuses on the
design, manufacture, and sale of home appliances, semiconductors, telecommunication
products, and digital media products in South Korea and internationally.
The company formerly known as Goldstar changed its name to LG Electronics in 1995. The
company received the Energy Star partner of the year award for FY2013. LG is a technology
company that focuses on its business expansion through strategic alliances with some of the
world's leading companies such as Prada, General Electricals, Schneider Electric, Siemens,
Toyota, Qualcomm, Hitachi, Mark Levinson, Nortel, Microsoft, Sun Technologies, Dolby, and
many more.
The company offers a wide array of products and it conducts its business through six operating
segments namely, Home Entertainment, Mobile Communications, Home Appliance, Innotek, Air
Conditioning and Energy Solutions, and Others.
Some of the major subsidiaries of the company are LG Innotek, LG Electronics Nanjing Display,
LG Electronics Tianjin Appliances, LG Electronics Pasig, LG Electronics Indonesia, LG Electronics
(Hangzhou), and Shanghai LG Electronics.
LG's R&D division strives hard to innovate novel products and technologies and improve the
current product portfolio to be a market leader in its sector. As technology changes from time to
time the R&D division focuses on launching new products with novel technologies. For FY2013,
the company spent US$365.27 million on R&D activities.
Geographically, the company along with its subsidiaries operates in more than 113 countries
worldwide. It classifies its geographies into nine geographic segments namely, South Korea,
North America, Central and South America, Europe, the MEA region, the APAC region, China,
the Commonwealth of Independent States, and India. As of March 2013, the company
employed around 87,000 people worldwide.

20.3.3 Business Segmentation by Revenue 2013

Exhibit 29: LG: Business Segmentation by Revenue 2013
20.3.4 Business Segmentation by Revenue 2012 and 2013

Exhibit 30: LG: Business Segmentation by Revenue 2012 and 2013 (US$ billion)

20.3.5 Sales by Geography 2013

Exhibit 31: LG : Sales by Geography 2013
 The APAC Segment (excluding South Korea, India, and China)

The company focuses on providing smart technologies and products to its customers to have a
competitive edge over its competitors. The company, through its strategic alliances with other
companies, focuses on its business expansion and improving its market position. The company
focuses on following three factors to increase customer shareholder value and brand image:
 Create the best products and services

 Focus on the R&D sector
 Business expansion through strategic initiatives such as mergers, acquisitions, partnerships,
and alliances


 June 29, 2014: Joins Open Automotive Alliance to

have better connectivity in cars through the
innovative application of the Android platform
 June 26, 2014: Launches LG G watch, powered by
Android and Google OS
 June 25, 2014: Develops a Software Development Kit
for the easy usage of applications for LG smart TVs
 June 24, 2014: Launches LG G3 smart phone in Hong
Kong
Key Highlights  June 12, 2014: Launches LG G pad series Tablets in
Europe
 May 18, 2014: Partners with Harman/Kardon, one of
the leading audio equipment manufacturers, for the
development of LG's stereo headset
 March 3, 2014: Company's LG G Flex wins gold award
at 2014 IF design awards
 February 26, 2014: LG receives most innovative
company award in the field of electronic appliances
by GSMA at mobile world congress, Barcelona


20.4 Samsung
20.4.1 Key Facts
Stock Listings Korea Stock Exchange
Ticker Symbol 005930


Samsung was incorporated in 1969 and is headquartered in Suwon, South Korea. The company
focuses on the design, manufacture, and sale of home appliances, semiconductors,
telecommunication products, and digital media products in South Korea and internationally.
Some innovations of the company over the recent past include the development of the largest
flexible LCD panel in 2005, the development of the world’s first real double-sided LCD in 2006,
the launch of OMNIA phone in 2008, and the launch of the world’s thinnest TV in 2009.
The IT & Mobile Communications, Consumer Electronics, Semiconductor, and Display Business
segments are the segments through the company does it business.
The IT & Mobile Communications segment is sub-segmented into the Mobile Communications
business, Networks business, and Digital Imaging business. Samsung has sold around 400 million
mobile devices worldwide. The Mobile Communications business focuses on providing
smartphones, and telecommunication systems. Its Networks business provides next-generation
network infrastructure and solutions with outstanding technology. The Digital Imaging business
provides innovative smart digital cameras. For FY2013, the IT & Mobile Communications segment
generated US$269.25 billion, which accounted for 54 percent of the company's total revenue.
The Consumer Electronics segment is sub-segmented into the Visual Display business, Digital
Appliances business, Printing Solutions business, and Health & Medical Equipment business. The
Visual Display business includes TVs such as LCDs, LEDs, and PDP TVs. The company's UHD TV
contributed the maximum market share (30 percent) for FY2013. The Digital Appliances business
offers home appliances such as refrigerators, washing machines, air conditioners, and other
appliances. The Printing Solutions business offers a wide array of printers such as A4 laser printers
and multifunction printers. The Health & Medical Equipment business provides ultrasound, digital
X-ray, and diagnostic devices. For FY2013, the Consumer Electronics segment generated
US$112.58 billion, which accounted for 22 percent of the company's total revenue.
The Display Business segment offers 3D memory technology and high-quality products such as
memory storage devices, LSI systems, and LEDs. For FY2013, this segment generated US$55.17
billion, which accounted for 11 percent of the company's total revenue.
Samsung's R&D division strives hard to provide innovative novel products and technologies to
improve its product portfolio and become a market leader in the Electrical and Electronics
sector. As on December 2013, the company's R&D sector had 42,000 employees working in its 42
research facilities. For FY2013, the company invested 9 percent of its total revenue in R&D

activities. The company's R&D centers are located in South Korea, China, the US, the UK, Russia,
India, Israel, and Japan.
The company's market share in the Global Electrical and Electronics market in 2013 was 23
percent. The company's products are distributed around the globe; its wide business offerings
have made it a leader in the Digital Media and Telecommunication Network sectors. The
company along with its 153 subsidiaries and 36 affiliates operates in Korea, the Americas,
Europe, the APAC region and Africa, and China. In 2013, the company generated 35 percent of
its revenue from Korea, 20 percent from china, 17 percent from the Americas, 14 percent from
Europe, and 14 percent from the APAC region and Africa. In the same year, the company
generated a net sales of US$ 205.824 billion and operating income of US$33.1065 billion.
20.4.3 Business Segmentation by Revenue 2013

Exhibit 32: Samsung: Business Segmentation by Revenue 2013

20.4.4 Business Segmentation by Revenue 2012 and 2013

Exhibit 33: Samsung: Business Segmentation by Revenue 2012 and 2013 (US$ billion)
20.4.5 Geographical Segmentation by Revenue 2013

Exhibit 34: Samsung: Geographical Segmentation by Revenue 2013


Operational strategy
The company focuses on launching novel technologies and products to have a competitive
edge over its competitors. It follows the three basic principles to achieve its targeted results they
are:
 Create best products and services

 Focus on R&D
 Focus on vertically integration of its products in the market
 Business expansion through strategic initiatives such as M&A, partnerships, and alliances

 July 1, 2014: Launches new solid state drive with 3D

and flash technology
 June 25, 2014: Partners with Google to enhance KNOX
technology into the next version of Android
 June 18, 2014: Launches World’s First Broadband LTE-A
Smartphone
 June 2, 2014: Launches Solid state drive line-up for
data centers for memory portfolio
 June 2, 2014: Launches Samsung Z smartphone, First
Key Highlights
Tinzen smartphone
 May 20, 2014: Receives MDFPP certification for
Samsung galaxy S5 and Note 10.1 edition
 January 26, 2014: Signs Global patent licensing
agreement with Google for the development of new
technology for Android phones
 September 13, 2013: Partners with Mobile Tele Systems
company in Russia to build LTE network in Northwest
region of Russia


21. Other Reports in this Series

Global Tablet Market 2014-2018
Printer Market in Russia 2014-2018
Digital Camera Market in North America 2014-2018
Global HDMI and DisplayPort enabled Equipment Market 2014-2018
Global Digital Camera Market 2014-2018
Global Port Security Management Market 2014-2018
Global Unified Threat Management Market 2014-2018
Global Automotive Air Conditioners Market 2014-2018
Global HDTV Market 2014-2018
Washing Machine Market in India 2014-2018
Water Purifier Market in India 2014-2018
Global Split AC Market 2014-2018
Smartphone Market in India 2014-2018
Digital Camera Market in Europe 2014-2018
Split AC Market in the US 2014-2018
Global 3D TV Market 2014-2018
Smartphone Market in the US 2014-2018
Global Bluetooth Speaker Market 2015-2019
Global Pedometer Market 2015-2019
Smartphone Market in Germany 2014-2018

DISCLAIMER
This report has been prepared from sources and data that we believe to be reliable, but we
make no representation as to its accuracy or completeness. Any decision or action taken by the
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and information provided are made as at the date of the report issue and are subject to change
without notice.
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no event shall Infiniti Research have any liability to any party for special, incidental, tort, or
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Copyright © 2015 Infiniti Research Ltd. All Rights Reserved.
Reproduction without written permission is completely forbidden.
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2015-2019 Global Smartphone Market

01. Executive Summary ........................................ 1

02. List of Abbreviations........................................ 3

03. Scope of the Report ........................................ 5

03.2 Product Offerings.................................................... 5

04. Market Research Methodology..................... 7

04.2 Research Methodology ......................................... 7

05. Introduction ..................................................... 9

06.2 Value Chain of Global Smartphone Market ...... 12

06.3 Supply Chain of Smartphones ............................ 17

06.4 Product Lifecycle of Smartphones...................... 19

06.5 Smartphone BOM ................................................. 20

07. Market Landscape ....................................... 22

07.2 Market Size and Forecast by Revenue .............. 23

07.3 Market Size and Forecast by Unit Shipments .... 24

07.4 ASP Trend .............................................................. 25

07.5 Five Forces Analysis ............................................. 26

08. Market Segmentation by Application ........ 28

08.2 Global Android Smartphone Market.................. 30

08.3 Global iOS Smartphone Market .......................... 31

08.4 Global Windows Smartphone Market ................ 31

08.5 Global BlackBerry Smartphone Market ............. 32

08.6 Global Other Smartphone Market ...................... 32

09. Market Segmentation by Screen Size ......... 33

09.2 Global Smartphone Market Segmentation: Below

09.3 Global Smartphone Market Segmentation: 5.0-

09.4 Global Smartphone Market Segmentation: 5.5-

09.5 Global Smartphone Market Segmentation: 6.0+

10. Geographical Segmentation ....................... 36

10.2 Smartphone Market in APAC Region ................. 37

10.3 Smartphone Market in Americas........................ 38

10.4 Smartphone Market in EMEA Region.................. 38

10.5 ASP by Region ...................................................... 39

11. Key Leading Countries ................................. 40

11.5 Brazil ...................................................................... 42

11.6 Japan .................................................................... 42

12. Buying Criteria............................................... 43

13. Market Growth Drivers .................................. 44

14. Drivers and their Impact ............................... 46

15. Market Challenges ....................................... 48

17. Market Trends................................................ 51

18. Trends and their Impact ............................... 53

19. Vendor Landscape ....................................... 54

19.2 Mergers and Acquisitions .................................... 54

19.3 Market Share Analysis 2014 ................................ 55

19.3.2 Huawei Technologies ............................................................... 56

19.3.3 Lenovo ......................................................................................... 56

19.3.5 Samsung Electronics ................................................................. 56

19.4 Other Prominent Vendors .................................... 57

19.4.2 Coolpad ...................................................................................... 57

19.4.3 Gionee ......................................................................................... 57

19.4.4 HTC ............................................................................................... 57

19.4.5 Micromax .................................................................................... 58

19.4.6 OnePlus ........................................................................................ 58

19.4.7 Sony .............................................................................................. 58

19.4.8 TCL Communication Technology ........................................... 58

19.4.9 Xiaomi .......................................................................................... 58

19.4.10 ZTE ............................................................................................ 59

20. Key Vendor Analysis..................................... 60

20.1.2 Business Overview...................................................................... 61

20.1.3 Product Segmentation by Revenue ...................................... 62

20.1.4 Geographical Segmentation by Revenue .......................... 63

20.1.5 Business Strategy ........................................................................ 63

20.1.6 Recent Developments ............................................................. 64