Not long ago, HTC posted six consecutive months of record revenue thanks to strong demand for its Android-powered smartphones. The company’s record run came to a screeching halt in October last year with the release of Apple’s iPhone 4S. HTC’s fourth quarter earnings fell, missing Wall Street’s expectations, and the rough patch continued in the first quarter of 2012. To compound matters, the latest study conducted by ad network Chitika shows that the troubled handset maker’s usage share has declined by more than 60% in the past five months from 18.22% to 7.28% based on traffic across its network. At the same time, Apple’s share has increased by 64% from 46.84% to 76.88% and other Android vendors such as Samsung and Huawei have recorded continued modest growth. HTC is betting big on its flagship One X smartphone, and it hopes the handset, along with the rest of its One-series phones, will help the company rebound.

Read

Spotify is the darling of tech blogs, but the overwhelming media hype leading up to the service’s U.S. launch has seemingly not carried over to end users. According to a recent report from the New York Post, paid subscriber growth in the U.S. has failed to meet expectations thus far. Spotify launched stateside roughly nine months ago and the service amassed 250,000 paid subscribers in its first three months. According to the Post, Spotify is now home to 3 million users in the U.S., but only 600,000 are paying either $4.99 or $9.99 per month for premium service while the remaining 80% enjoy free basic service. “People aren’t 100 percent happy,” the Post’s source said, noting that Spotify plans to remove the limit of five plays per month on individual songs for free subscribers in an effort to bolster user loyalty.

Read

Andy Rubin on Monday announced that the Google’s Android partners are currently activating an average of 850,000 each each. The activation rate continues to increase rapidly, and it is now up a whopping 250% year-over-year. In December it was reported that 700,000 devices were activated each day. Google also announced that the Android Market is now home to 450,000 apps, a mere 50,000 shy of Apple’s iOS App Store, and more than 1 billion downloads are being served each month to over 300 million Android devices worldwide.

Read

The growth of global LCD TV shipments is expected to fall in 2012, according to market research firm GfK. The company believes that in 2012, growth will come from emerging markets as demand from the U.S. and Europe will subside. Global TV shipments grew 12% in 2011, and that rate is expected to slow to an estimated 7% growth rate this year. In total, GfK expects vendors to ship 225 million LCD TVs worldwide in 2012, Digitimes reports. Samsung, the world’s largest TV vendor by shipment volume, has vowed to sell more than 50 million units into global channels this year.

Read

Global tablet sales reached 67 million units in 2011 and are expected to grow 38.8% annually to 248.6 million by the end of 2015, according to a new market report from Transparency Market Research. Led by Apple’s iPad, tablet sales increased 275.5% in 2011 from 17.8 million units sold in 2010. Smartphone sales in 2011 hit 468.9 million units, a 66.7% increase over 2010 sales of 282 million units, and sales are expected to reach 1.05 billion in 2015 with Asia accounting for 39.5% of the market. Smartphone sales in the fourth quarter of 2011 beat the combined sales from the full year of 2008, the report notes. The leap in sales was largely driven by consumer and enterprise adoption of the iPhone 4S, which shipped more than 36 million units in the quarter. Read on for Transparency Market Research’s press release.

Tablet Sales to End Users is Expected to Reach 248.6 Million Units by 2015, Smartphones Sales to End Users Will Reach 1,048.0 Million Units by 2015: Transparency Market Research

ALBANY, New York, February 8, 2012/PRNewswire/ –

According to a new market report published by Transparency Market Research (http://www.transparencymarketresearch.com) “Tablet Market and Smartphones Market: Global Database & Forecast (2010 – 2015) [http://www.transparencymarketresearch.com/tablet-and-smartphones-market.html ]“, Global Tablet sales to end users reached 67.0 million units in 2011 and is expected to reach 248.6 million units by the end of 2015, growing at a CAGR of 38.8% from 2011 to 2015. Asia – Pacific (including Japan) is expected to enjoy the highest share of overall global shipments and end user sales of Tablets at 36.1% and 35.3% respectively in 2015.

In 2011, Smartphone sales to end users reached 469.9 million units, registering a growth of 66.7% over 2010 sales of 282.0 million units. The Smartphone sales to end user are expected to reach 1,048.0 million units by 2015 with Asia – Pacific accounting for the largest market share at 39.5%. Asia Pacific is also expected to enjoy the highest growth rate at a CAGR of 36.3% from 2010 to 2015.

Browse the database at http://www.transparencymarketresearch.com/tablet-and-smartphones-market.html

The Tablet sales to end user increased by 276.5% in 2011 from 17.8 million units sold to end users in 2010. Globally, the installed base of Tablet devices have reached 81.2 million units in 2011 and expected to reach 388.8 million units by the end of 2015. This represents approximately 45% replacement/loss rate by the same year.

Form factor plays crucial role in adoption of Tablet devices. Our research indicates that consumer purchased the largest number of Tablet devices with screen size ranging 8 Inch and 10 Inch; whereas devices weighed between 450g and 900g (1 lb – 2 lbs) had the highest share of overall sales of tablet devices. Consumer segment is the largest adopter of media Tablet devices, while business users prefer communicators. Media Tablets is expected to remain the largest Tablet device segment with over 60% sales share in 2015, while hybrid segment will account for more than one-fourth of the sales in the same year. Continue reading here [http://www.transparencymarketresearch.com/tablet-and-smartphones-market.html ].

Smartphones are becoming more ubiquitous communication devices among all user segments with almost 75% of smartphone consumer (individual) subscriber use their smartphones for personal as well as business purposes. Moreover, 65% of global SMBs now allow employee owned smartphone for official use. This acted as the strong booster for Smartphone market growth. The smartphones market [http://www.transparencymarketresearch.com/tablet-and-smartphones-market.html ] grew by 66.7% during last year and sales reached to 469.9 million units in 2011. Smartphone sale in 4Q2011 alone crossed the combined sales of all the four quarters of 2008. This leap in sales came on account of consumer as well as enterprise adoption of iPhone 4S, which posted 36.1 million units sales to end user in Q42011 alone. Continue reading here [http://www.transparencymarketresearch.com/tablet-and-smartphones-market.html ].

This extensive database report covers quarterly sales to end users, installed base, revenue, ASP from 2009 to 2011 and forecast till 2015 for Tablets and Smartphones based on following segmentation.

Tablet Market Segmentation

- By Operating System

- iOS

- Android

- Windows

- Blackberry Tablet OS (QNX)

- By Vendors

- Apple

- Samsung

- HTC

- Dell

- RIM

- Amazon

- Motorola

- By Form Factors

- Weight

- Width

- Length

- Display Screen Size

- Thickness (depth)

- Users

- Business liable

- Consumer liable

- Personal Only

- Personal and Business

- Usability

- Media Tab

- Communicators

- Hybrid

- Geography

- North America

- Europe

- Asia – Pacific (including Japan)

- ROW

Smartphones Market Segmentation

- By Operating System

- Symbian

- iOS

- Android

- Windows Mobile

- Blackberry OS

- Bada

- By Vendors

- Nokia

- Apple

- Samsung

- HTC

- RIM

- By Form Factors

- Weight

- Width

- Length

- Display Screen Size

- Thickness (depth)

- Users

- Business liable

- Consumer liable

- Personal Only

- Personal and Business

- Usability

- Media Tab

- Communicators

- Hybrid

- Geography

- North America

- Europe

- Asia – Pacific (including Japan)

- ROW

- Input Type

- Touchscreen

- Keyboard

- Keypad

Phone maker ZTE recently said that it sees the United States and China as the two largest markets for smartphone sales growth. “The United States and China will be key engines driving our smartphone sales,” ZTE’s head of handset strategy Lv Qianhao, told Reuters in a recent interview, noting that the company expects its worldwide smartphone shipments to double in 2012 and to increase by 30% to 40% annually through 2015. ZTE mostly sells Android-powered smartphones but said it plans to launch a Windows Phone device in China before the third quarter this year; we wouldn’t be surprised if it’s the Windows Phone 7.5-powered ZTE Tania that was on display during the Consumer Electronics Show last week. “If we say ZTE started out as a contractor, like those building mass housing that are value for money, then we want to be a developer of luxury high-end estates,” Qianhao said.

Read

LTE networks in the United States are expanding at a remarkable pace — after less than a year, the U.S. is already the global 4G LTE leader by subscription volume — and global LTE growth is expected to remain strong in the coming years. Market research and intelligence firm ABI Research last week said that it estimates worldwide LTE connections will reach nearly 80 million by the end of 2013. “We are expecting to see more LTE networks lighting up in the next year or two, but operators are now taking a quieter approach when it comes to deployment,” said ABI analyst Fei Feng Seet in a statement. Read on for more.

Available spectrum is a barrier in may markets, however, and regulators in the U.S. and in developing markets have not been proactive in addressing the issue. “The issue of insufficient spectrum echoes across various markets and is especially evident in developing regions as regulators are a bit slow in reacting to market needs,” ABI’s Philip Solis, research director, mobile networks, said. ABI still believes sales of LTE devices will explode of the next few years as subscribers look to take advantage of the increased speeds and improved coverage afforded by 4G. ABI’s press release follows below.

80 Million LTE Connections Worldwide by 2013

SINGAPORE – October 21, 2011

By the end of 2013, LTE connections will be close to 80 million. This figure will account for connections on both FD-LTE, including that paired with WCDMA/HSPA and CDMA 1x/EV-DO, and TD-LTE technologies globally. “We are expecting to see more LTE networks lighting up in the next year or two, but operators are now taking a quieter approach when it comes to deployment,” comments Fei Feng Seet, research analyst, wireless.

This is evident in the case of Saudi Arabia, where all three of the nation’s operators, Mobily (Etihad Etisalat), Saudi Telecom Company (STC), and Zain Saudi Arabia announced their LTE network launches within a matter of days of one another.. All three fought hard to gain recognition and have first mover advantage in the Middle East.. The interesting part is that all three are rolling-out TD-LTE networks using 2.5 GHz licensed spectrum meant for WiMAX and plan to extend their coverage nationwide. While the Saudi operators have conducted FD-LTE trials for over a year with various vendors, the reason behind the TD-LTE network choice is primarily due to unavailable paired spectrum. They are waiting on the regulator to release new spectrum, since preferred frequency is currently used for military purposes.

“The issue of insufficient spectrum echoes across various markets and is especially evident in developing regions as regulators are a bit slow in reacting to market needs,” notes Philip Solis, research director, mobile networks. Many operators are looking into the option of spectrum re-farming. While the preferred spectrums are usually 2.6 GHz or 700 MHz, players such as Poland’s Aero2 and Singapore’s MobileOne have successfully deployed FD-LTE on 1.8 GHz, which was slated for 3G usage. Aero2 has deployed TD-LTE on 2.5 GHz band.

Reacting to operator demand, both TD-LTE and FD-LTE devices are expected to flood the market in the next few years driving subscriber connectivity.

ABI Research’s “4G Subscriber, Device, and Networks Market Data” contains regional and selected country-level segmentation for the 4G market, including forecasts for mobile WiMAX and LTE subscribers, devices, base stations, and population coverage.

It is part of the firm’s 4G Research Service.

One in five smartphones sold in the United States during the second quarter was 4G LTE-enabled according to The NPD Group, and the market for LTE handsets is set to continue its rapid ascent according to a new report. Market research firm In-Stat on Wednesday suggested sales of handsets with embedded 4G LTE will surpass 154 million units in 2015. We’ve seen even more bullish projections — ABI Research said last week that annual LTE smartphone sales would reach 245 million devices in 2016 — but the consensus appears to be that LTE growth won’t be slowing any time soon. Read on for more.

“As the number of smartphones and other mobile devices that require data connections increases, so does the need for the increased capacity provided by LTE networks,” said In-Stat analyst Chris Kissel. “There will be over 290 million LTE subscriptions by 2015. Not only is the forecast for the number of LTE handsets moving rapidly upward, so, too, is the total number of cellular subscribers.”

In-Stat also notes in its new Cellular Subscriptions and Handsets Database, Q4’11 Forecast that total cellular subscriptions are expected to reach 6.5 billion in 2015.

Tablet vendors shipped 18.7 million units during the third quarter of this year, DigiTimes said on Tuesday. Third-quarter shipments were up 27.5% over the second quarter, but the increase was less than the 60.9% jump in shipments between the first and second quarters of this year. The slower growth was attributed to a weaker global economy, and the entire industry suffered. Apple is estimated to have shipped 13 million units in the September quarter, fewer than DigiTimes’s prediction that Apple would ship 14-15 million units. That figure, however, is still up up 36.8% over the second quarter. 5.7 million non-iPad units shipped during the third quarter, up 10.1% sequentially, but growth suffered due to an “inability to attract customers” away from the iPad, DigiTimes senior analyst James Wong said. Apple’s share of the tablet market grew from 64% in the second quarter to 70% in the third quarter according to DigiTimes’s figures. Apple will reveal its third-quarter earnings on Tuesday evening.

Read

Smart TVs will see significant growth next year according to Topology Research Institute, which expects current shipments to double to 52.85 million units. The research company said just over 7 million Smart TVs were shipped in 2010, and that figure is likely to increase to 25.18 million units in 2011. Smart TVs are defined as television sets that are capable of accessing the Internet, can be used to download and install applications, surf the web and more. Topology Research Institute believes there will be three sectors to the Smart TV market: one dominated by Samsung, which offers 1,000 apps, a second dominated by Google Android-powered televisions with partners such as Sony, Hisen, TCI and Konka, and a third sector of HTML5, CE-HTML and HbbTV-powered Smart TVs from LG, Sharp and Philips. 

Read

Global shipments of PCs grew slightly but less than analysts had predicted during the third quarter of 2011, Gartner said recently, citing preliminary findings of a new research report. 91.8 million PCs were shipped during the quarter, a 3.2% jumped from the same quarter of last year. The figures are lower than Gartner’s original estimate, which suggested PC vendors would ship 5.1% more units during the quarter. Gartner said the lower sales can be attributed to a weak Western European PC market. Read on for more.

HP maintains the largest PC market share with a 17.7 grip on the industry, a 5.3% increase from the same period last year, and the company shipped 16.2 million units during the quarter. Lenovo had the largest increase in market share and jumped 25.2% to a 13.5% share. Dell (11.6%), Acer (10.6%), and ASUS (6.2%) followed in the market share rankings.

“The inventory buildup, which slowed growth the last four quarters, mostly cleared out during the third quarter of this year; however, the PC industry has been performing below normal seasonality,” Gartner principal analyst Mikako Kitagawa said. “As expected, back-to-school PC sales were disappointing in mature markets, confirming that the consumer PC market continues to be weak. The popularity of non-PC devices, including media tablets, such as the iPad and smartphones, took consumers’ spending away from PCs.”

In the U.S., HP was the top PC vendor in the third quarter with 28.9% of the market followed by Dell with 21.9%, Apple with 12.9%, Toshiba with 8.4% and Acer with 7.8% of the market. Gartner’s full press release follows below.

Gartner Says Worldwide PC Shipments Grew 3.2 Percent in Third Quarter of 2011

For the First Time, Lenovo Moved Into the No. 2 Position and Asus Became the No. 5 Vendor

STAMFORD, Conn., October 12, 2011—

Worldwide PC shipments totaled 91.8 million units in the third quarter of 2011, a 3.2 percent increase from the third quarter of 2010, according to preliminary results by Gartner, Inc. These results are slightly lower than Gartner’s earlier projection of 5.1 percent growth for the quarter. The EMEA region contributed to lower-than-expected growth led by a weak Western European market.

“The inventory buildup, which slowed growth the last four quarters, mostly cleared out during the third quarter of this year; however, the PC industry has been performing below normal seasonality,” said Mikako Kitagawa, principal analyst at Gartner. “As expected, back-to-school PC sales were disappointing in mature markets, confirming that the consumer PC market continues to be weak. The popularity of non-PC devices, including media tablets, such as the iPad and smartphones, took consumers’ spending away from PCs.

“As the PC market faced a slowdown, vendor consolidation has become a more apparent trend in the industry. Lenovo’s recent merger with NEC, and its acquisition of Medion, as well as HP’s announcement that it may spin off or sell its PC business, underlined this trend during the quarter.”

HP, the No. 1 vendor based on global PC shipments, grew faster than the industry average, and its market share reached 17.7 percent in the third quarter of 2011 (see Table 1). Despite announcing in the middle of 2Q11 the potential spinoff of its PC business, HP experienced strong growth in the U.S., while outside the U.S., growth was relatively weak or average.

Lenovo became the second-largest PC vendor in the worldwide market for the first time. The company’s expansion was boosted in part by the joint vendor with NEC in Japan. However, its aggressive marketing to both the professional and consumer PC markets accelerated its shipment volume.

Table1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 3Q11 (Units)

Company	3Q11 Shipments	3Q11 Market Share (%)	3Q10 Shipments	3Q10 Market Share (%)	3Q10-3Q11 Growth (%)
HP	16,231,528	17.7	15,419,654	17.3	5.3
Lenovo	12,352,194	13.5	9,867,917	11.1	25.2
Dell	10,676,360	11.6	10,829,115	12.2	-1.4
Acer Group	9,686,853	10.6	12,612,822	14.2	-23.2
Asus	5,693,146	6.2	4,802,481	5.4	18.5
Others	37,146,785	40.5	35,420,559	39.8	4.9
Total	91,786,865	100.0	88,952,547	100.0	3.2

Note: Data includes desk-based PCs, mobile PCs, including mini-notebooks but not media tablets such as the iPad. Final estimates will be subject to change.
Lenovo shipments include NEC shipments, but not Medion’s shipments.
Source: Gartner (October 2011)

Dell’s performance was below the industry average in most regions, as the company faced intensified competition in the professional space, where Dell has been traditionally strong. Acer mostly cleared its inventory buildup in the EMEA region by the third quarter of 2011. However, channels have been adopting a conservative position in regard to placing orders following the inventory issues. Asus widened the gap with Toshiba, the sixth-largest vendor. Asus achieved strong growth in China.

In the U.S., PC shipments totaled 17.8 million units in the third quarter of 2011, a 1.1 percent increase from the third quarter of 2010. The U.S. PC market experienced year-over-year growth for the first time in three quarters. While the consumer market continued to be weak with disappointing back-to-school sales in the third quarter, the inventory was kept mostly in check as industry expectations were relatively low.

“The main contributor to the weak consumer PC market in the U.S. was intensified competition for consumers’ money,” Ms. Kitagawa said. “Media tablets and smartphones took center stage in the U.S. retail sector, and the expectation is for continuing demand for these devices throughout the holiday season.”

HP showed strong growth in the U.S. PC market, as shipments increased 15.1 percent in the third quarter, and its market share totaled 28.9 percent (see Table 2). Despite the potential spinoff of its PC business, HP executives’ efforts to give the appearance of “business as usual” seemed to work in the quarter.

Dell struggled as shipments declined 7.2 percent in the third quarter of 2011. “Dell’s issue has been balancing profitability and market share gain, a difficult task in a PC industry where high volumes and low margins are the norm,” Ms. Kitagawa said.

Gartner’s early study shows that Apple experienced the strongest growth among the top five vendors in the U.S. PC market. Apple’s PC shipments increased 21.5 percent in the third quarter of 2011. The robust growth of the MacBook Air continued to lead Apple’s overall growth in the U.S. market.

Table 2
Preliminary United States PC Vendor Unit Shipment Estimates for 3Q11 (Units)

Company	3Q11 Shipments	3Q11 Market Share (%)	3Q10 Shipments	3Q10 Market Share (%)	3Q11-3Q10 Growth (%)
HP	5,132,614	28.9	4,459,120	25.4	15.1
Dell	3,886,864	21.9	4,188,687	23.8	-7.2
Apple	2,300,000	12.9	1,893,600	10.8	21.5
Toshiba	1,486,100	8.4	1,545,630	8.8	-3.9
Acer Group	1,378,768	7.8	1,848,511	10.5	-25.4
Others	3,580,989	20.2	3,635,684	20.7	-1.5
Total	17,765,335	100.0	17,571,232	100.0	1.1

Note: Data includes desk-based PCs, mobile PCs, including mini-notebooks but not media tablets such as the iPad. Final estimates will be subject to change.
Source: Gartner (October 2011)

PC growth in EMEA reached 26.6 million units in the third quarter of 2011, a 2.9 percent decline from the second quarter of 2010. It was the third consecutive quarter that the EMEA region has experienced negative growth. However, analysts said vendors may have seen the end of backed-up inventory issues, which have been pulling down growth. The consumer PC market in Western Europe remained weak, with consumer confidence permanently shaken by the economic issues spreading across most of the region. Furthermore, the market share of mini-notebooks continued to decline, especially in Western Europe, which also contributed to the weak year-over-year comparison.

In Asia/Pacific, PC shipments reached 31.8 million units in the third quarter of 2011, a 6 percent increase from the same period last year. Vendors continued to stimulate demand aggressively with promotions and prices, benefiting buyers looking for good prices. It also provided an opportunity for some consumers to buy their first mobile PC.

The PC market in Latin America grew 19.6 percent in the third quarter of 2011. Mobile PC shipments grew 31.1 percent year over year, and desk-based PC shipments increased 6.5 percent in the third quarter of 2011.

PC shipments in Japan grew 3 percent, with shipments reaching 3.9 million units. The consumer market received a boost in demand with the introduction by vendors of new consumer models in September. There was also a rebound in production for the professional market, after a drop in enterprise demand because of the higher prioritization for business continuity plans that coincided with the earthquake and tsunami in March.

These results are preliminary. Final statistics will be available soon to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe. Additional research can be found on the Computing Hardware section on Gartner’s website at http://www.gartner.com/it/products/research/asset_129157_2395.jsp.

Shipments of consumer media tablets like the Apple iPad are expected to approach 250 million units in 2017, a report from In-Stat suggests. While analysts at In-Stat see tablet adoption growing rapidly over the next six years, even a number as large as 250 million is conservative when considering the estimates other firms have recently reported. IHS iSuppli, for example, increased its estimates earlier this week, suggesting tablet shipments will surpass 275 million units in 2015. In-Stat still sees tablet having a huge impact on the industry however, and the firm believes Android and iOS will continue to dominate the market through 2017, with Windows gaining less than 10% of the market at that point in time. ”The tablet market and its associated ecosystem are still evolving. Over the next few generations we will see more differentiation between devices that are targeting different market segments and usage models,” said In-Stat chief technology strategist Jim McGregor in a statement. “In addition, competitive device and service pricing will bring tablets into the mainstream consumer and enterprise markets.” McGregor continued, “Tablets are joining an array of smart-connected devices that allow users almost unlimited access to content and communications. These new devices mark a significant change in the value change of the electronics industry where the content and applications are now the key differentiators and innovation drivers.” In-Stat’s full press release follows below.

Tablet Shipments to Approach 250 Million Units in 2017

SCOTTSDALE, Ariz., August 22, 2011 – Years after the first introduction of prototype concept devices known as Mobile Internet Devices (MIDs), the tablet fulfilled the promise of this product category. The tablet market reached an inflection point through the combination of a new device (the Apple iPad), new business models supported by wireless operators, and new usage models through cloud computing and mobile applications. As we enter the last half of 2011, In-Stat forecasts more growth opportunities as a result of price degradation, and new tablets from major consumer electronic (CE) companies like Samsung, Motorola, BlackBerry, LG, and HTC. New In-Stat (www.in-stat.com) research forecasts that this trend will help push tablet shipments toward 250 million units in 2017.

“The tablet market and its associated ecosystem are still evolving. Over the next few generations we will see more differentiation between devices that are targeting different market segments and usage models. In addition, competitive device and service pricing will bring tablets into the mainstream consumer and enterprise markets,” says Jim McGregor, Chief Technology Strategist. “Tablets are joining an array of smart-connected devices that allow users almost unlimited access to content and communications. These new devices mark a significant change in the value change of the electronics industry where the content and applications are now the key differentiators and innovation drivers.”

Recent research findings include:

• In the consumer segment, tablets are competing against all CE and computing devices, not just PCs.
• Despite similarities in system hardware and software architecture, usage models among mobile devices vary by device type.
• The combination of mobile applications, new semiconductor technology, and the full Internet experience are key factors in empowering the tablet market.
• The 9-inch to 11-inch form factor is forecasted to be the dominant tablet form factor with 56% of the market in 2017.
• iOS and Android are forecast to maintain over 90% of the market share with Windows as a distant 3rd.
• Not supporting one of the leading OS platforms is likely to lead to the failure of several companies in the tablet market due to lack of application support.
• Wireless operator business models could have a tremendous impact on future tablet demand.

Recent In-Stat research, The Reality and Ramifications of Tablets (#IN1105088ID), a 30 slide PowerPoint presentation, covers the history, current state, and outlook for tablets including terms of tablet definitions, usage models, market position relative to other devices, evolution of the technology and the market, and forecast for growth by region, consumer and business segments, form factor, and operating system (OS). The report also discusses the challenges facing tablets, the factors that could significantly increase growth prospects for tablets, and the ramifications tablets are having on the overall electronics ecosystem.

This research is part of In-Stat’s Portable and Computing Connected Devices service, provides analysis of the market for portable consumer electronics, including e-readers, digital photo frames, portable media players, handheld games, personal navigation devices, digital radio, digital cameras and electronic toys.

HTC on Friday reported record sales for the fourth consecutive month, though the Taiwan-based smartphone vendor’s growth did slow significantly in July. Following revenues of NT$38.7 in April, NT$40.6 billion in May and NT$45 billion in June, HTC pulled in NT$45.11 billion ($1.56 billion) last month to set a company record yet again. Continued strong demand for HTC’s Android smartphones drove revenue up 83% over July 2010, but HTC’s momentum slowed as it grew less than 1% over June. HTC is doing its best to ensure that the growth continues, however, as CEO Peter Chou stated recently that the company plans to launch between six and eight new smartphones this quarter.

Read

Mobile data connections are poised grow 11% in 2011, driving global mobile data revenue to $314.7 billion. Market research firm Gartner on Thursday said mobile data connections will reach 5.6 billion this year compared to 5 billion in 2010, driving global revenue from mobile data up 22.5% from the $257 billion earned last year. “Mobile data traffic will increase significantly as more people will have access to mobile data networks, there is a migration toward smartphones and an increase in sales of media tablets,” said Gartner analyst Jessica Ekholm in a statement. “Mobile data volumes will continue to grow as mobile data networks become faster and more ubiquitous, while at the same time the number of data users and data usage per user is expected to grow.” Gartner sees global mobile data connections growing steadily over the next few years, reaching 7.4 billion in 2015 creating $552 billion in revenue. Preparing networks for this growth is something carriers need to focus on. “What carriers currently need are innovative ways to increase data revenue while finding smart solutions to manage a growing demand in data,” said Gartner research director Sylvain Fabre. “Ultimately, it will be the consumer who chooses the content he or she wants to use, and carriers need to ensure that the quality of experience is good. A substandard user experience may lead to higher churn.” Gartner’s full press release follows below.

Gartner Says Worldwide Mobile Connections Will Reach 5.6 Billion in 2011 as Mobile Data Services Revenue Totals $314.7 Billion

STAMFORD, Conn., August 4, 2011—

Worldwide mobile connections will reach 5.6 billion in 2011, up 11 percent from 5 billion connections in 2010, according to Gartner, Inc. Mobile data services revenue will total $314.7 billion in 2011, a 22.5 percent increase from 2010 revenue of $257 billion.

“Mobile data traffic will increase significantly as more people will have access to mobile data networks, there is a migration toward smartphones and an increase in sales of media tablets,” said Jessica Ekholm, principal research analyst at Gartner. “Mobile data volumes will continue to grow as mobile data networks become faster and more ubiquitous, while at the same time the number of data users and data usage per user is expected to grow.”

“Data revenue will continue to grow but at a much slower rate,” Ms. Ekholm said. “This is causing a decoupling between revenue and data traffic, and it is also creating an increase in network costs for carriers as they try to sustain growing data traffic.”

Worldwide mobile connections will experience steady growth through 2015 when mobile connections are forecast to reach 7.4 billion, and mobile data revenue will reach $552 billion.

In calculating its forecast, Gartner assumed there are four major mobile data traffic drivers: growth in the number of mobile connections, increasing availability of higher-speed data-centric mobile networks, smartphones, and data-consuming content and applications.

A growing number of mobile connections will lead to higher demands on communication service providers’ (CSPs’) data networks as more people access the networks to use mobile data and to send text messages. In addition to the total number of connections growing, Gartner also expects that mobile data usage per connection will increase throughout the forecast period and that there will be a shift in mobile users’ perception of mobile data around the world, as data plans go from being seen as a luxury, to being considered a nice-to-have service, to finally being perceived as potentially essential.

Gartner expects communications service providers (CSPs) to increasingly start moving toward offering more flexible and more personalized data plans, which should help capture a larger mobile data user base. CSPs have also upgraded their networks by offering faster download and upload speeds to consumers, which have helped improve the general perception of data quality and thus led to increased data uptake.

“What carriers currently need are innovative ways to increase data revenue while finding smart solutions to manage a growing demand in data,” said Sylvain Fabre, research director at Gartner. “Ultimately, it will be the consumer who chooses the content he or she wants to use, and carriers need to ensure that the quality of experience is good. A substandard user experience may lead to higher churn.”

Gartner analysts said carriers should investigate the pros and the cons of more customized pricing plans, such as tiered pricing, a la carte and usage-based plans, carefully weighing additional costs and future benefits. Additionally, CSPs should look to offer increased flexibility in pricing and introduce add-on pricing models, in which users are able to add data access when they want to. These add-on pricing models could include paying for additional usage and additional speed, and charging a fee for voice over Internet Protocol (VoIP) or for gaming.

“Carriers should focus on increasing the level of clarity and the transparency of their mobile data contracts in order to make the majority of customers feel more at ease in using data services. This is particularly important when it comes to data roaming,” Ms. Ekholm said. “Offering clients various ways of being able to track and monitor their data usage would help carriers receive a larger amount of revenue from more profitable lower-usage, medium-pay users.”

Additional information is available in the Gartner report “Forecast: Mobile Data Traffic and Revenue, Worldwide, 2010-2015″ at http://www.gartner.com/resId=1737114.

Research firm IDC released its latest Worldwide Mobile Phone Tracker report on Thursday and revealed that shipments of Apple’s iPhone jumped 142% over the same period last year. Samsung’s shipments rose 10% year-over year, ZTE saw a 36% increase in shipments and LG’s shipments dropped 18.9%. The entire mobile phone market grew 11.3% year-over-year, but that was lower than IDC’s 13.3% growth projection. The feature phone market declined 4% as the U.S., Japan and Western Europe jumped on the smartphone bandwagon. “While this is not a new trend – smartphones have been the primary engine of growth for the last several quarters – it does mark something of a transition point, as demonstrated by the growing number and variety of smartphones featured in the vendors’ portfolios,” said Ramon Llamas, senior research analyst with IDC’s mobile phone technology and trends team. Read on for IDC’s full press release.

Worldwide Mobile Phone Market Grew More Than 11% in the Second Quarter; Feature Phones Decline for First Time in Almost 2 Years, According to IDC

28 Jul 2011

FRAMINGHAM, Mass. July 28, 2011 – The worldwide mobile phone market grew 11.3% year over year in the second quarter of 2011 (2Q11), despite a weaker feature phone market, which declined for the first time since 3Q09. According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, vendors shipped 365.4 million units in 2Q11 compared to 328.4 million units in the second quarter of 2010. The 11.3% growth was lower than IDC’s forecast of 13.3% for the quarter and was also below the 16.8% growth in 1Q11.

The feature phone market shrank 4% in 2Q11 when compared to 2Q10. The decline in shipments was most prominent in economically mature regions, such as the United States, Japan, and Western Europe, as users rapidly transition to smartphones. This was the first decline since Q3 2009 and reflected a combination of conservative spending and continued shift to smartphones.

“The shrinking feature phone market is having the greatest impact on some of the world’s largest suppliers of mobile phones,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. “Stalwarts such as Nokia are losing share in the feature phone category to low-cost suppliers such as Micromax, TCL-Alcatel, and Huawei.”

“For the overall market to grow by double digits year over year, despite the decline in feature phones, is testament to the strength of the global smartphone market,” noted Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends team. “While this is not a new trend – smartphones have been the primary engine of growth for the last several quarters – it does mark something of a transition point, as demonstrated by the growing number and variety of smartphones featured in the vendors’ portfolios.”

Market Outlook

The feature phone forecast isn’t expected to be any rosier in the quarters and years to come. Shipment growth of the device type won’t exceed 1.1% in any year forecasted by IDC.

Regional Analysis

• The traditionally slow second quarter in Asia/Pacific was exacerbated by Nokia’s channel inventory corrections in China. Apple thrived in China thanks to strong iPhone 4 demand. As well, a number of domestic brands in Southeast Asia like CSL, Nexian, Q-Mobile, and Wellcom grew sales of Android-powered smartphones. China-based vendors gained share in India and Southeast Asia at the low end. In Japan, the impact of the earthquake continued into April and May as component shortages forced manufacturers to release new models in June while customer demand was harder to fulfill.

• In Western Europe, the market declined sequentially compared to the first quarter. The feature phone market declined while smartphone shipment growth slowed as phone makers and carriers reduced inventories in advance of expected third-quarter product launches. Feature phone dependent suppliers were not able to offset feature phone weakness completely with higher smartphone sales. The CEMA markets performed well on a year-over-year basis despite civil unrest in Egypt and other Arab countries, where sales were negatively impacted as a result. Samsung gained share while Chinese brands continued to make inroads in the region.

• In North America, smartphones once again took center stage, propelled by lower prices, key device launches, and enhanced channel marketing. In particular, Android-based devices extended their lead in the United States and took leadership in Canada thanks to Samsung, Motorola, HTC, and LG. Meanwhile, demand for feature phones continued to slide, but there still existed pockets of interest for voice-centric and quick-messaging devices. Still, as the region heads towards a smartphone-centric future, IDC expects feature phones to represent an increasingly smaller portion of the market.

• The Latin America market growth was driven by low-cost smartphones, specifically those with social networking features. Lower smartphone prices, including those of the Android variety, are driving smartphone penetration in several Latin American countries. Price is expected to be a point of differentiation – as well as applications and device features – between Android players in future.

Top Five Mobile Phone Vendors

Nokia’s hold on the top global mobile phone spot weakened last quarter as inventory buildups in traditional strongholds, namely China and Europe, led to sharp year-over-year shipment declines. Nokia’s global feature phone and smartphone businesses suffered a similar fate. One positive sign for Nokia last quarter were dual-SIM devices; the company shipped over 2.6 million of these in the second quarter. Over the long term, Nokia’s smartphone fortunes will be dictated by its ability to sell Windows Phone 7 smartphone devices, which are expected to hit the market this year. It is Nokia’s primary smartphone platform of the future. In the meantime, Nokia is trying to sustain shipment volume with low-cost mobile phones and devices powered by the aging Symbian smartphone platform.

Samsung posted double-digit growth from the same quarter a year ago, and just slightly slower growth than the overall pace of the market. Like other vendors it realized a decrease in demand for its feature phones, but made up the difference with continued success for its Android-based Galaxy smartphones. The difference between Samsung and market leader Nokia continued to shrink, with less than 20 million units separating the two vendors, mostly resulting from Nokia’s struggles in the market. Still, Samsung expects continued growth into the second half, which could put it in closer contention with Nokia.

LG Electronics held on to its number three position during the quarter, thanks in part to its Optimus smartphone sales worldwide. However, a combination of factors – including soft demand for its feature phones, slow pace of smartphone releases, and competitive pressures, led the company to downgrade its outlook for the year by 24%. Originally, LG had anticipated flat growth in 2011 from 2010 levels, even as it expected the overall market to increase by 8%. Should LG’s volumes decrease as much as it anticipates, other vendors may jockey for position ahead of LG.

Apple maintained its number four position overall but closed the gap on Top 5 competitors thanks to another record unit shipment quarter. The company easily posted the highest growth rate of the worldwide leaders despite the fact that its flagship iPhone 4 is now more than a year old. The triple-digit shipment volume growth allowed Apple to more than double its share when compared to the same quarter last year. Apple’s ability to bring its smartphone momentum to developing economies, where it’s less successful, will help dictate the company’s smartphone fortunes in future.

ZTE likewise improved volumes and picked up market share during the quarter, enough to maintain the number five position. Long known as a purveyor of simple, voice-centric mobile phones, ZTE has stepped up its smartphone game with the continued success of its Android-powered Blade and Racer smartphones while announcing Libra, Skate, and Amigo smartphones for release in the second half of this year. Feature phones continued to be popular for ZTE, with the release of its 547i, a social networking-centric device in Europe.

Top Five Mobile Phone Vendors, Shipments, and Market Share, Q2 2011 (Units in Millions)

Vendor	2Q11 Unit Shipments		2Q11 Market Share		2Q10 Unit Shipments		2Q10 Market Share		Year-Over-Year Change
Nokia	88.5	24.2%		111.1		33.8%		-20.3%
Samsung	70.2	19.2%		63.8		19.4%		10.0%
LG Electronics	24.8	6.8%		30.6		9.3%		-18.9%
Apple	20.3	5.6%		8.4		2.6%		141.8%
ZTE	16.6	4.5%		12.2		3.7%		36.0%
Others	145	39.7%		102.3		31.2%		41.7%
Total	365.4	100.0%		328.4		100.0%		11.3%