Gartner's latest report reveals Huawei has emerged as the no.3 smartphone vendor after Apple and Samsung.
According to Gartner, global mobile phone sales saw a 1.7 percent decline in 2012 with sales totalling 1.75 billion units. The fourth quarter of 2012, however, saw record smartphone sales of 2017 million units, a 38.3 percent surge from the same period last year.
Gartner also observed that the demand for feature phones remain low in 2012, including the fourth quarter. Sales for the feature phones totalled 264.4 million units in the fourth quarter of 2012, down 19.3 percent year-on-year. Gartner analysts predict sales of the feature phones to continue to slow down in 2013. Smartphones, on the other hand, sales is likely to reach 1 billion units by end of this year while overall phone sales are estimated to react 1.9 billion units.
“The last time the worldwide mobile phone market declined was in 2009,” says Anshul Gupta, principal research analyst at Gartner. “Tough economic conditions, shifting consumer preferences and intense market competition weakened the worldwide mobile phone market this year.”
Gartner’s report also reveals massive growth of Samsung and Apple in 2012 with the two companies raising their market share to 52 percent in the fourth quarter, up from 46.4 percent in third quarter of 2012. Samsung ended 2012 at the top position, in both global smartphones and overall mobile phone sales.
“There is no manufacturer that can firmly lay claim to the No. 3 spot in global smartphone sales,” said Mr. Gupta. “The success of Apple and Samsung is based on the strength of their brands as much as their actual products. Their direct competitors, including those with comparable products, struggle to achieve the same brand appreciation among consumers, who, in a tough economic environment, go for cheaper products over brand.”
According to the report, Huawei emerged the third top smartphone vendor after Samsung and Apple. It’s first Huawei has accomplished this. The report says Huawei sold about 27.2 million smartphones, up from 73.8 percent in 2011. Huawei improved its market reputation with the launch of the Ascend D2 and Mate devices at the recently held Computer Electronics Show. The researchers predict similar growth for the company in 2013, if it is able to improve its product mix to a higher tier.
The smartphone market is set for more intense competition in 2013 with brands such as Sony and Nokia look to improve their offerings. “With Samsung commanding over 42.5 percent of the Android market globally, and the next vendor at just 6 percent share, the Android brand is being overshadowed by Samsung’s brand with the Galaxy name nearly a synonym for Android phones in consumers’ mind share,” said Mr. Gupta.
Check out Gartner’s rankings for the smartphone vendors in 2012 below. In the meanwhile, read full Gartner’s report here.
