Monday, August 1, 2011

AAPL: Smartphone sales to cross 1B by 2016

Bright future for Apple
 IMS Research has forecasted that smartphone sales will eclipse 420 million devices in 2011 and will make up about 28 percent of the global handset .  Annual sales are also expected to top one billion devices by the end of 2016 due to the release of more affordable entry-level smartphones, accounting for one of every two mobile handsets sold.
"But despite the higher margins for smartphones, and the seemingly insatiable consumer appetite for converged devices, it is clear that not all OEMs are equally positioned to capitalize on this market trend," said Josh Builta, analyst in IMS' mobile technologies group. "For instance, LG, despite being the third largest OEM in the world, has offered a fairly limited smartphone portfolio in recent years, a factor that resulted in the company reaching less than a three percent share of the total smartphone market in 2010."

In recent years, no company has flourished in this environment as much as Apple .
The company's 2Q11 results in which it reported record sales of more than 
20 million iPhones indicates it can be expected to remain an influential 
presence in the market despite the increased competition.
However, Apple is not alone in its success. Of the traditional handset 

manufacturers, Samsung has demonstrated the best results in recent years. 
Capitalizing on its diverse portfolio that includes devices using the company's
 own bada operating system along with Android and Windows Mobile
 as well as its Galaxy series, Samsung smartphone market share
 increased from about three percent in 1Q10 to over 13 percent in 1Q11. 
Smaller, dedicated smartphone vendors such as HTC have also
 seen their position rise.
"These companies are well positioned to benefit from the projected

 growth of the smartphone market in the future. Though the other
 OEMs are stepping up their efforts in the space, companies such 
as Apple, HTC and Samsung have a considerable amount of momentum. 
Catching them will not be an easy task," Builta noted.

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