Chinese handset maker ZTE said it could ship 100 million smartphones a year by 2015, Reuters reported on Monday. The company sold 15 million phones in 2011 and is looking to sell upwards of 50 million this year. “As handsets contribute more to overall revenue, it will affect our profit margins,” executive director He Shiyou said. “In 2012, our aim is to increase handset margins.” Following the success of Samsung’s Galaxy Note, ZTE will release two smartphone-tablet hybrids — affectionately referred to as “phablets” — in 2012. “We want to come up with the next generation of a Galaxy Note-type product — a combo product of handsets and tablets,” Lv Qianhao, ZTE’s head of handset strategy, said. ZTE has previously focuses on the low-end market, though recently it has made a push to compete on the same level as Samsung and Apple. Unlike many of its competitors, however, ZTE may face problems and set backs due to its lack of brand awareness. “People who buy Apple and Samsung have greater brand awareness so they might not take chances with a little-known brand, especially one from China,” said Teck-Zhung Wong, a Beijing-based analyst for research firm IDC. “No one really knows ZTE outside China.”

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Samsung’s market share in the Chinese market is three times larger than Apple’s and still growing, Bloomberg reported on Sunday. The Cupertino-based company recently began to sell its flagship smartphone on the nation’s third largest carrier, China Telecom, in addition China Unicom, which up until recently was the exclusive carrier of the iPhone in China. The new partnership, however, may be too little, too late. “I don’t expect Apple to replace Samsung any time soon,” Gartner analyst Sandy Shen said. “China Telecom is the nation’s smallest carrier, so the extent to which they can help Apple is quite limited.” Read on for more.

Apple’s smartphone market share in the country currently sits at 7.5% compared to Samsung’s commanding 24.3%. The 16.8 point gap between the two companies has nearly doubled since the third quarter, though Apple is still the top smartphone vendor globally by volume. China is a huge market though with smartphone shipments in the country expected to jump 52% to 137 million units in China, overtaking the U.S. for the first time ever as the world’s largest market.

Unlike Apple, Samsung offers its mobile devices on all three major carriers, including the world’s largest carrier, China Mobile. “Having access to more subscribers gives vendors like Samsung an advantage,” said Teck Zhung Wong, a Beijing-based analyst with IDC China. “If Apple is going to continue to grow in the Chinese market, it has to consider very seriously a handset with China Mobile.”

Despite not selling the device, or even supporting 3G speeds with it, China Mobile currently has more than 15 million iPhone users, all of whom purchased the device unlocked.

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Sprint on Wednesday announced the “family-friendly” Android-powered ZTE Fury. This entry-level handset features a 3.5-inch capacitive display with a 1GHz single-core processor and Android 2.3 Gingerbread. The Fury is equipped with a 5-megapixel rear camera, a microSD slot, 4GB of internal storage, 512MB of RAM and the usual suite of preloaded Sprint apps. “We realize that there are a lot of choices in the market when it comes to choosing the right cell phone that fits the needs of both a working parent and their family,” said David Owens, Sprint’s vice president-Product Development. “Providing affordable, Android-powered devices, like ZTE Fury, in our lineup helps give families the tools and information to better manage their wireless usage while still providing the style and functionality they need to keep up with their busy lives.” The ZTE Fury will be available on March 11th for $19.99 after a $50 mail-in rebate. Read on for Sprint’s press release.

Families Stay Connected with ZTE Fury Smartphone from Sprint

Priced at less than $20, new Android phone takes the worry out of choosing the ideal phone for kids and parents alike

OVERLAND PARK, Kan. and RICHARDSON, Texas – March 9, 2012 – Recognizing the importance of providing a wide variety of devices to fit the needs of families with children, Sprint (NYSE: S), and ZTE Corporation (“ZTE”) today announced the upcoming availability of ZTE FuryTM, a family-friendly Android-powered device that doesn’t skimp on features and comes matched with the only truly unlimited data pricing plans on all phones from a national wireless carrier. Beginning March 11, the full-featured Android-based ZTE Fury will be available for just $19.99 after a $50 mail-in rebate via reward card1 and a new two-year service agreement (excludes taxes and surcharges) in all Sprint retail channels including www.sprint.com and 1-800-Sprint1.

The value-priced ZTE Fury comes equipped with all the apps and functionality busy parents and their children want, including a 3.5-inch capacitive display, 5 MP camera with LED flash and 3G hotspot capabilities. The device is also compatible with Sprint’s family services that give parents the tools to encourage good habits and responsible phone use. Family-ready devices like ZTE Fury give parents piece of mind with easy-to-load apps, such as:

• Sprint Family Locator: Allows parents to quickly and easily locate their family members on an interactive map and to set up “safety checks” to ensure their children make it to school safely and on time. Sprint Family Locator costs $5 per month to locate up to four phones. Additional information can be found at www.sprint.com/familylocator.
• Sprint Mobile Controls: Gives parents the opportunity to clearly understand their child’s talk, text and app use habits. The app gives parents the ability to lock their child’s phone on-demand or to schedule locks – like during dinner, during school or late at night, and to browse their child’s contacts and apps downloaded to the phone. Sprint Mobile Controls is available on all Sprint CDMA Android-powered smartphones for $4.99 per month, per line. Parents can sign up and learn more about Sprint Mobile Controls by visiting www.sprint.com/mobilecontrols.
• Sprint Drive First: An app from Sprint that automatically locks the phone when traveling more than 10 MPH and unlocks when the car has stopped driving. The app directs incoming calls to voicemail and silences distracting alerts while driving. Sprint Drive First is available on all Sprint CDMA Android-powered smartphones for $2 per month, per line. Visit www.sprint.com/drivefirst for more information.

“We realize that there are a lot of choices in the market when it comes to choosing the right cell phone that fits the needs of both a working parent and their family,” said David Owens, Sprint vice president-Product Development. “Providing affordable, Android-powered devices, like ZTE Fury, in our lineup helps give families the tools and information to better manage their wireless usage while still providing the style and functionality they need to keep up with their busy lives.”

ZTE Fury also comes preloaded with Sprint ID, a unique feature that enables customers to have a fully personalized experience with a few simple clicks. Customers can download and switch among five self-selected ID packs filled with ringtones, wallpapers, widgets and applications that are tailored to an individual’s lifestyle and interests.

Additional features of ZTE Fury include:
• 3G hotspot functionality2 that allows up to five Wi-Fi enabled devices to share one network connection, an ideal solution for gatherings and travel
• 1GHz Qualcomm Snapdragon MSM8655 processor
• 4GB internal memory and an expandable memory slot supporting up to 32GB
• Using Sprint’s nationwide 3G network, customers can stay connected with their friends, family, business and community through more than 400,000 applications available in the Android Market™.

“ZTE Fury continues ZTE’s legacy of offering a large customer base an entry point to highly sought-after mobile data services. In particular, we know the youth market desires the latest technology but has special requirements for cost and functionality,” said Lixin Cheng, CEO, ZTE USA, and president, North America Region, ZTE. “We are privileged to partner with Sprint to offer customers of all ages productivity, entertainment and connectedness on the go with ZTE Fury.”

ZTE Fury requires activation on a Sprint Everything Data plan for smartphones3 and families that purchase ZTE Fury can rest assured that their monthly data charges won’t be out of control as Sprint offers the only truly unlimited data pricing plans on all phones from a national wireless carrier. Sprint customers who purchase ZTE Fury can take advantage of Sprint Everything Data Family Plans with Any Mobile, AnytimeSM starting at $129.99 per month for two lines, plus the required $10 per month, per line Premium Data add-on charge for smartphones. Additional lines (lines three to five) are $19.99 per month plus the $10 per month, per line Premium Data add-on charge for smartphones.

The unannounced DROID Fighter and LG Lucid 4G, codenamed Cayman, will be coming to Verizon’s 4G LTE network within the coming weeks, according to a a leaked internal document obtained by Droid-Life. According to the photo, the Lucid 4G will launch on March 29th and the DROID Fighter will arrive on April 12th. Information surrounding both devices is rather limited, although it is believed the LG Lucid 4G will be a mid-level handset, not to compete with the flagship LG Spectrum. The HTC Fireball, which is rumored to launch as the DROID Incredible 4G, also makes an appearance on the list, as does a device called the Samsung “Plato” and ZTE V66, although no release dates are listed for those.

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Microsoft plans to roll out its Windows Phone “Tango” update for its mobile platform in China some time this year. While the new version of Microsoft’s OS will allow Windows Phones to hit lower price points, Chinese manufacturers are pessimistic about the plan and believe the operating system may not achieve enough success, according to DigiTimes. Android-based smartphones are believed to continue to dominate the Chinese market due to the aggressive marketing of low-end devices from local vendors such as ZTE, Huawei, Coolpad and Xiaomi Technology, and the ease of developing applications through the open-source operating system. Despite unfavorable market conditions, Nokia will lead the charge into China with devices set to launch in the first half of 2012. The publication’s sources also believe Huawei will release several Windows Phones din the second quarter, with Microsoft also looking to partner with Lenovo and ZTE to launch devices in the Chinese market.

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Intel on Monday detailed a number new products and partnerships during the company’s Mobile World Congress press event. “We are very pleased to add new, important customers and capabilities to our phone offerings today. We remain focused on delivering exciting new features and outstanding performance to smartphone customers around the world.” said Intel CEO Paul Otellini. UK service provider Orange will launch an Atom-powered smartphone based on the Z2460 reference design. The device will feature a sleek body that will enable “rich entertainment experiences [to] Orange services, including Orange TV, Daily Motion, Deezer, Orange Wednesdays and Orange Gestures.” The handset is scheduled for a late summer launch and will be available in the United Kingdom and France. Read on for more.

Intel has partnered with Lava International to offer smartphones in India. Like Orange’s device, the XOLO X900 is based on Intel’s reference design and will be the first Atom-powered smartphone to reach the Indian market. The device will be available in the second quarter and will support major Indian cellular networks. In an agreement similar to the previously announced partnership with Motorola, Intel also announced a multi-year partnership for smartphones and tablets with ZTE. The Chinese manufacturer’s first Intel-powered device is scheduled to debut in the second half of 2012.

In addition to Intel’s Atom Z2460 “Medfield” processor, the company announced the Atom Z2580 CPU that will feature an advanced multi-mode LTE/3G/2G solution and will double the performance of the Z2640. To address the growing low-end market, Intel revealed plans for the Atom Z2000 processor as well. The company will begin testing both chipsets in the second half of 2012, with consumer products carrying the Z2580 and Z2000 expected to launch in first half of 2013.

Lastly, Intel has entered into a multi-year alliance with Visa to “develop mobile commerce solutions tailored to consumers in developed and developing countries.” Intel’s smartphone reference design has been named the first handset to be certified for Visa payWave mobile payment system.

Intel Expands Smartphone Portfolio: New Customers, Products, Software and Services

Announces Smartphone Device Engagements with Orange*, Lava*, ZTE* and Visa*

Discloses Range of New Smartphone SoCs and Communications Products

MOBILE WORLD CONGRESS, Barcelona, Spain, Feb. 27, 2012 – Intel Corporation President and CEO Paul Otellini today detailed a number of announcements and plans aimed at expanding the company’s smartphone product portfolio and customer ecosystem, including strategic new engagements with Orange*, Lava International Ltd.*, ZTE*, and Visa*.

“We are very pleased to add new, important customers and capabilities to our phone offerings today. We remain focused on delivering exciting new features and outstanding performance to smartphone customers around the world.” said Otellini.

Otellini made the announcements during an Intel news conference at Mobile World Congress. He also highlighted the company’s plans to expand its smartphone SoC and communications product roadmaps for the performance and value smartphone market segments.

New Smartphone Customer Engagements
Building on strategic engagements with Motorola Mobility Inc.* and Lenovo*, Intel detailed new device relationships with Orange, Lava International Ltd. and ZTE.

Yves Maitre, Orange senior vice president of Mobile Multimedia and Devices, joined Otellini to discuss a new Orange smartphone based on the Intel® Atom™ processor Z2460 reference design. Housed in a sleek body, the design enables rich entertainment experiences and Orange services, including Orange TV, Daily Motion, Deezer, Orange Wednesdays and Orange Gestures. The Orange smartphone will be available in the United Kingdom and France later this summer.

Intel also announced plans to enter the high-growth market for smartphones in India through an alliance with Lava International Ltd., one of the fastest-growing Indian mobile handset companies.Vishal Sehgal, Lava co-founder and board director, announced the launch of XOLO Smartphone by Lava. The XOLO X900 is based on Intel’s smartphone reference design and will be the first Intel technology-based smartphone in the India market. The device will be available from top retail outlets early in the second quarter of 2012 and will support major Indian cellular networks.

Similar to its previously announced partnership with Motorola Mobility, Intel also announced a multi-year mobile device collaboration across smartphones and tablets with global handset maker ZTE. Mr. He Shiyou, executive vice president and head of the Terminal Division of ZTE, discussed how his company’s alliance with Intel will enable ZTE to move faster and create unique and differentiated products for wireless operators. He also announced that ZTE’s first Intel-powered mobile device is scheduled to debut in the second half of 2012.

Expanding Smartphone SoC and Communications Roadmaps
Building on its ecosystem engagements, Intel announced plans for three new smartphone SoC products that expand the company’s portfolio from the performance-to-value market segments.

Extending the leading performance and energy efficiency of the Intel™ Atom® processor Z2460, formerly codenamed “Medfield,” Intel announced that the platform will now support speeds up to 2GHz.

Intel also announced the Atom™ Z2580 processor that doubles the performance of the Atom processor Z2460, and features an advanced multimode LTE/3G/2G solution. Intel will sample the Z2580 in the second half of the year with customer products scheduled in the first half of 2013.

Addressing the growing handset opportunity in emerging markets where consumers look for more value at lower prices, Intel disclosed plans for the Intel® Atom™ processor Z2000.

The Z2000 is aimed squarely at the value smartphone market segment, which industry sources predict could reach up to 500 million units by 20151.The platform includes a 1.0 GHz Atom CPU offering great graphics and video performance, and the ability to access the Web and play Google Android* games. It also supports the Intel® XMM 6265 3G HSPA+ modem with Dual-SIM 2G/3G, offering flexibility on data/voice calling plans to save on costs. Intel will sample the Z2000 in mid-2012 with customer products scheduled by early 2013.

Building on these 32nm announcements, Otellini discussed how the Atom™ processor will outpace Moore’s Law and announced that Intel will ship 22nm SoCs for carrier certification next year, and is already in development on 14nm SoC technology.

In 2011, Intel shipped in more than 400 million cellular platforms. Building on this market segment position, Intel announced the XMM 7160, an advanced multimode LTE/3G/2G platform with support for 100Mbps downlink and 50Mbps uplink, and support for HSPA+ 42Mbps. Intel will sample the product in the second quarter with customer designs scheduled to launch by the end of 2012.

Intel also announced that it is sampling the XMM 6360 platform, a new slim modem 3G HSPA+ solution supporting 42Mbps downlink and 11.5Mbps uplink for small form factors.

Building Better Experiences on Intel Architecture
Intel’s strategy is to create and enable engaging, consistent, aware and secure user experiences across a range of mobile devices.

An emerging trend is the use of mobile devices to enable secure online and retail commerce. Otellini welcomed John Partridge, President, Visa Inc., who announced a strategic multi-year alliance to develop mobile commerce solutions tailored to consumers in developed and developing countries.

The effort includes collaboration across a range of Visa mobile services and Intel® Atom™-based smartphones and tablets to deliver compelling and secure user services. As a first step, Partridge announced that Intel’s smartphone reference design is now certified for Visa payWave* mobile financial transactions. This means that customer products based on Intel’s smartphone reference design will have time-to-market support of Visa mobile services.

Building on its collaboration with Google, Intel continues to work closely with ISVs to help ensure the majority of Android apps run on Intel Atom processor-based devices. Otellini discussed how Intel has all the right tools and expertise to support the robust mobile application developer ecosystem.

ZTE doesn’t have a strong presence here in the U.S., but the vendor revealed several smartphones at this year’s Mobile World Congress trade show that will be big sellers in a number of markets. The Era, Orbit and PF112 are among the new ZTE phones that will launch this year, and we spent some time with each of them on Monday. The Era and the PF112 both run Google’s Android 4.0 Ice Cream Sandwich operating system, while the Orbit is a Windows Phone. The Era is a quad-core Tegra 3-powered beast with a 4.3-inch screen and high-end specs that rival any device launched here at the show. The PF112 sports an even larger 4.5-inch screen, tri-band HSPA+ and an 8-megapixel shooter. The Orbit is the company’s low-end Windows Phone model, with a 4-inch display, a 1GHz processor and 4GB of on-board storage. In use, the Windows Phone-powered Orbit was definitely impressive for an entry-level smartphone, exhibiting the smooth user experience we’ve come to expect from handsets powered by Microsoft’s mobile platform. The Android phones weren’t operational, so we can’t comment on their performance. We can definitely still admire their sleek designs though, so check out our hands-on gallery for photos of each of these new ZTE phones.

ZTE announced a range of new smartphones at this year’s Mobile World Congress in Barcelona, but the star of the show was undoubtedly the company’s new flagship Android phone, the ZTE Era. The Era is a quad-core Tegra 3-powered Android 4.0 phone with a 4.3-inch 960 x 540-pixel qHD display, 8GB of internal storage, HSPA+ and a case that is just 7.8 millimeters thick, which is even thinner than the HTC One S announced on Sunday. ”The numbers speak for themselves. With 50 percent growth in handset shipments and 400 percent growth in smartphone shipments, we are confident that we are entering a new era in the mobile terminal market,” said He Shiyou, Executive Vice President and Head of the Terminals Division, in a statement. The ZTE Era captures the excitement we feel about the future and brings it to life in a fantastic new device.” Announced alongside the Era is the ZTE Orbit, a new entry-level Windows Phone with a 4-inch 800 x 480-pixel display, a single-core 1GHz processor, 4GB of storage and a 5-megapixel camera that will launch in the second quarter. ZTE’s press releases follow below.

Based on the NVIDIA® Tegra® 3 quad-core mobile processor and equipped with a NVIDIA Icera 450 HSPA+ modem, the ZTE Era packs high definition multimedia capabilities into a package that is just 7.8mm thick. 

The Era has a 4.3 inch QHD screen giving high quality 960 x 540 pixel images, 8GB of memory expandable with a MicroSD card, HD voice and Dolby sound. Running the latest Android 4.0 (Ice Cream Sandwich) platform the ZTE Era is the most powerful Android smartphone from ZTE, providing powerful new ways of communicating and sharing, with easy multitasking, rich notifications and deep interactivity. The ZTE Era delivers a great combination of amazing battery life and outstanding performance with Tegra 3′s unique 4-PLUS-1™ quad-core architecture with a fifth battery saver core.

The ZTE Era is the flagship device launch from ZTE at Mobile World Congress and is part of a series of eight new devices unveiled at the event, all delivering significant advances in power, high definition multimedia capabilities and design. Based on technology innovations including quad-core chipsets, LTE and the latest Android and Windows Phone platforms, the new devices form a core component of ZTE’s ambition to become a top three handset provider by 2015.

“The numbers speak for themselves. With 50 percent growth in handset shipments and 400 percent growth in smartphone shipments, we are confident that we are entering a new era in the mobile terminal market. The ZTE Era captures the excitement we feel about the future and brings it to life in a fantastic new device,” said Mr. He Shiyou, Executive Vice President and Head of the Terminals Division at ZTE.

According to industry analyst Gartner, ZTE was ranked the world’s No.4 in terms of handset shipments in Q4 2011 and ZTE smartphone sales are growing faster than any other vendor except Apple.

“In 2012, ZTE products will be building up from the low-middle end of the market into the middle-high end, with the ZTE Era being the best example of that development,” Mr. He Shiyou said. “We will continue our long-standing cooperation with operators around the world, but we will also continue to build our distributor channels (both ODM and OEM), and we will be focusing our marketing in particular on the high-end markets of Europe, America, Japan and China.”

The ZTE Era will be launched in Europe and China in the second half of 2012.

The Era, together with the comprehensive portfolio of ZTE terminals, is on display at MWC 2012 in Barcelona on the ZTE booth in Hall 8, stand B145.

ZTE Expands Windows Phone Portfolio

ZTE Orbit joins Windows Phone smartphone offerings

27 February 2012, London, UK – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment and network solutions, has expanded on its commitment to the Windows Phone platform and introduced the new ZTE Orbit smartphone.

The ZTE Orbit joins the ZTE Tania smartphone in the company’s portfolio of Windows Phone-based devices. The ZTE Tania is commercially available in the UK and Sweden and other countries around the world.

“Microsoft is excited to continue partnering with ZTE to bring new Windows Phones to market.  We look forward to the availability of ZTE Orbit in major markets around the world in the second quarter of 2012,” said Mark Linton, Senior Director of the OEM Division, Microsoft.

“The Windows Phone platform is as powerful as it is intuitive, enabling us to create and deliver exciting new devices that meet real consumer demand,” said Mr. He Shiyou, Executive Vice President and Head of the Terminal Division of ZTE. “Our partnership with Microsoft is a key component of our strategy to grow our share of the smartphone market. ZTE is proud to be at the forefront of device manufacturers who are using the Windows Phone platform.”

The ZTE Orbit is based on the latest version of Windows Phone and comes with 4GB of memory, HD Voice, and a 5Mpx autofocus camera with LED flash. The ZTE Orbit will be available in the second quarter of this year.

At the same time, ZTE announced the MF668A data card which takes advantage of Microsoft’s Mobile Broadband Class Driver in Windows 8. ZTE’s MF668A data card is being demonstrated at Mobile World Congress for the first time. The data card, which supports RAW IP and high-speed transmission, is based on the new MBIM v1.0 specification, recently approved by the USB-IF, and natively supported in Windows 8 without additional software.

Launched on 18 January, the ZTE Tania is a chic Windows Phone device, with a chassis measuring just 10.7mm in depth, 4GB internal storage and a 4.3 inch touch screen. The 1GHz processor and ultra-sharp cinematic WVGA 800 x 480px screen make responding to emails, editing documents and browsing the internet fast and intuitive. The first Windows Phone-powered smartphone launched by ZTE, the ZTE Tania is expected to be available in stores in the UK in early April at tariff points in the £10-20 range.

The full portfolio of ZTE Windows Phone devices is being demonstrated at Mobile World Congress at the ZTE booth (Hall 8, Stand B145).

ZTE is looking to make a big splash at next week’s Mobile World Congress, bringing eight new smartphones powered by Android and Windows Phone to the event. The company had previously announced three Android smartphones, the Mimosa X, PF200 and N910. The Mimosa X comes equipped with a NVIDIA Tegra 2 processor, a 4.3-inch qHD display, Ice Cream Sandwich, 4GB of internal storage, a microSD slot, a front facing camera and a 5-megapixel rear camera. The flagship PF200 will sport an unspecified 1.2GHz chipset along with a 4.3-inch qHD display, LTE connectivity, Android 4.0, an 8-megapixel rear camera and a 2-megapixel front-facing camera. Meanwhile, the N910 comes with a 1.5GHz processor, Android 4.0, a 5-megapixel rear camera and 2-megapixel secondary camera. Specific details of the five remaining handsets are unknown, however ZTE says they will combine LTE and multicore processors to differentiate them, reports SlashGear. The company is looking to become one of the world’s top three handset manufacturers by 2015.

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Global smartphone sales increased 47.3% to 149 million units in the fourth quarter of 2011, according to market research firm Gartner. Total smartphone sales for the full year increased 58% to 472 million units and accounted for 31% of all mobile devices sold. The record sales were led by Apple’s iPhone, which sold 37 million units and helped the company capture a 23.8% market share in the fourth quarter. Apple was also the top smartphone vendor in 2011, with a 19% market share. “Western Europe and North America led most of the smartphone growth for Apple during the fourth quarter of 2011,” said Roberta Cozza, principal research analyst at Gartner. “In Western Europe the spike in iPhone sales in the fourth quarter saved the overall smartphone market after two consecutive quarters of slow sales.” Samsung continued its success with LG, Sony Ericsson, Motorola and Research In Motion recording disappointing results. Both ZTE and Huawei dominated the low-end to mid-range market and became — along with Apple — the fastest-growing vendors in the fourth quarter of 2011. “These vendors expanded their market reach and kept on improving the user experience of their Android devices,” said Cozza. Read on for Gartner’s press release.

Gartner Says Worldwide Smartphone Sales Soared in Fourth Quarter of 2011 With 47 Percent Growth
Apple Became Top Smartphone Vendor in Fourth Quarter of 2011 and in 2011 as a Whole

Egham, UK, February 15, 2012—

Worldwide smartphone sales to end users soared to 149 million units in the fourth quarter of 2011, a 47.3 per cent increase from the fourth quarter of 2010, according to Gartner, Inc. Total smartphone sales in 2011 reached 472 million units and accounted for 31 percent of all mobile devices sales, up 58 percent from 2010.

Smartphone volumes during the quarter rose due to record sales of Apple iPhones. As a result, Apple became the third-largest mobile phone vendor in the world, overtaking LG. Apple also became the world’s top smartphone vendor, with a market share of 23.8 percent in the fourth quarter of 2011, and the top smartphone vendor for 2011 as a whole, with a 19 percent market share. “Western Europe and North America led most of the smartphone growth for Apple during the fourth quarter of 2011,” said Roberta Cozza, principal research analyst at Gartner. “In Western Europe the spike in iPhone sales in the fourth quarter saved the overall smartphone market after two consecutive quarters of slow sales.”

The quarter saw Samsung and Apple cement their positions further at the top of the market as their brands and new products clearly stood out. LG, Sony Ericsson, Motorola and Research In Motion (RIM) again recorded disappointing results as they struggled to improve volumes and profits significantly. These vendors were also exposed to a much stronger threat from the midrange and low end of the smartphone market as ZTE and Huawei continued to gain share during the quarter.

Worldwide mobile device sales to end users totaled 476.5 million units in the fourth quarter of 2011, a 5.4 percent increase from the same period in 2010 (see Table 1). In 2011 as a whole, end users bought 1.8 billion units, an 11.1 percent increase from 2010 (see Table 2). “Expectations for 2012 are for the overall market to grow by about 7 percent, while smartphone growth is expected to slow to around 39 percent,” said Annette Zimmermann, principal research analyst at Gartner.

In the fourth quarter of 2011, Nokia’s mobile phone sales numbered 111.7 million units, an 8.7 percent decrease from last year. “Samsung closed the gap with Nokia in overall market share,” said Ms. Cozza. “Samsung profited from strong smartphone sales of 34 million units in the fourth quarter of 2011. The troubled economic environment in Europe and Nokia’s weakened brand status posed challenges that were hard to overcome in just one quarter. However, Nokia proved its ability to execute and deliver on time with its new Lumia 710 and 800 handsets. Nokia will have to continue to offer aggressive prices to encourage communications service providers (CSPs) to add its products to portfolios currently dominated by Android-based devices.”

Apple had an exceptional fourth quarter, selling 35.5 million smartphones to end users, a 121.4 percent increase year on year. Apple’s continued attention to channel management helped it take full advantage of the strong quarter to further close the gap with Samsung, which saw some inventory build up for its smartphone range. Apple’s strong performance will continue into the first quarter of 2012 as availability of the iPhone 4S widens. However, since Apple will not benefit from delayed purchases as it did in the fourth quarter of 2011, Gartner analysts expect its sales to decline quarter-on-quarter.

After Apple, ZTE and Huawei were the fastest-growing vendors in the fourth quarter of 2011. “These vendors expanded their market reach and kept on improving the user experience of their Android devices,” said Ms. Cozza.

In the fourth quarter of 2011, ZTE moved into fourth place in the global handset market. ZTE posted a strong smartphone sales increase of 71 percent sequentially. The company was able to extend its portfolio to three CSPs in its home market and benefited from consumers’ interest in low-cost smartphones. Huawei moved ahead of LG in the Android marketplace to become a top-four Android manufacturer, thanks to strong smartphone growth in the quarter. Huawei has made significant progress in moving to its own-branded devices, and it has continued to expand its portfolio into higher tiers as its tries to build more iconic products.

RIM dropped to the No. 7 spot in the fourth quarter of 2011, with a 10.7 percent decline. RIM’s delay with its BlackBerry 10 platform will further impair its ability to retain users. However, RIM’s biggest challenge is still to expand the developer base around its ecosystem and convince developers to work and innovate with BlackBerry 10.

In the smartphone OS market (see Table 3), competition between Google and Apple intensified. Android’s share declined slightly sequentially. This was due to strong iPhone sales, driven in particular by the iPhone 4S in mature markets and the weakness of key Android vendors as they struggled to create unique and differentiated devices. Samsung remained the main contributor to Android share gains in the second half of 2011. iOS’s market share grew 8 percentage points year-on-year, but Gartner analysts expect Apple’s share to drop in the next couple of quarters as the upgrade cycle to the iPhone 4S slows. Nokia’s first Windows Phone smartphones, the Lumia 710 and 800, made their debut, but, as expected, sales were not enough to prevent a fall in Microsoft’s smartphone market share.

Sprint on Thursday announced the ZTE Optik Honeycomb tablet. The 7-inch device will be available February 5th for $99.99 with a new two-year agreement, as previously reported. ”ZTE Optik is ZTE’s first tablet in North America and makes the tablet experience available to a new segment of consumers,” said Lixin Cheng, CEO and president of ZTE USA. “Paired with Sprint’s cutting-edge network, ZTE Optik provides an exceptional user experience to consumers who demand affordability, flexibility and mobility in one package.” The Optik features a 1.2GHz dual-core Snapdragon processor with 16GB of internal storage and 1GB of RAM. The device also contains a microSD slot, a 4,000 mAh battery, a front facing 2-megapixel camera and a rear 5-megapixel camera. The tablet will be available for $349.99 off contract and comes pre-loaded with Sprint Zone, Sprint TV, Sprint Music Plus, Sprint Navigation, Sprint Football Live and NASCAR Sprint Cup MobileSM. Read on for Sprint’s press release.

ZTE Optik is an Android Tablet Offering Sprint Customers a Combination E-reader, Media Player and Portable Computing Device at an Affordable Price

Available beginning Feb. 5, ZTE Optik boasts a 7-inch touchscreen display, Android 3.2, Honeycomb, and dual cameras for under $100

OVERLAND PARK, Kan. & RICHARDSON, Texas – Feb. 2, 2012 – Beginning on Sunday, Feb. 5, Sprint (NYSE:S) will introduce its first tablet for under $100, ZTE Optik™, a Sprint 3G tablet featuring a 7-inch touchscreen display with WXGA 1280×800 resolution and pinch-to-zoom, Android™ 3.2, Honeycomb, and dual cameras.

ZTE Optik will be available through Sprint direct ship sales channels, including Sprint Stores, Sprint Business Sales, Telesales (1-800-SPRINT1) and online (www.sprint.com) for just $99.99 with a new line or eligible upgrade and two-year service agreement. It will also be available without a service agreement for $349.99, and business customers may qualify for special pricing. (All pricing excludes tax.)

“Sprint is committed to delivering exceptional value and feature-rich devices to our customers,” said David Owens, vice president – Product Development, Sprint. “ZTE Optik packs great features for under $100. When this device is combined with our Tablet Connection plans, customers can easily keep their personal and professional lives organized, stay connected with their social networks and get things done while on the go.”

Powered by Android 3.2, Honeycomb, the version of Android designed specifically for tablets, ZTE Optik is a dynamic e-reader, media player and portable computing device. It features a 1.2GHz dual-core Qualcomm® Snapdragon® processor, 1GB of RAM, 16GB of storage and 7-inch capacitive touchscreen that allows the user to get work done or stay entertained surfing the web, playing games and watching videos with Adobe® Flash® enabled websites. It has two cameras – a rear-facing 5-megapixel camera and front-facing 2-megapixel camera that enables video chat.

“ZTE Optik is ZTE’s first tablet in North America and makes the tablet experience available to a new segment of consumers,” said Lixin Cheng, CEO, ZTE USA and president, North America Region, ZTE. “Paired with Sprint’s cutting-edge network, ZTE Optik provides an exceptional user experience to consumers who demand affordability, flexibility and mobility in one package.”

For those that want to get more out of their tablet, ZTE Optik provides access to Android Market™, which features more than 400,000 useful apps, games and widgets. Additional key features of ZTE Optik include:

• Google mobile services such as Google Search™, Gmail™, Google Maps™ with Navigation, Google Books™ and YouTube™
• Sprint Zone, Sprint TV, Sprint Music Plus, Sprint Navigation, Sprint Football Live and NASCAR Sprint Cup MobileSM
• Wi-Fi® (802.11 b/g)
• Swype™
• Integrated GPS
• 4000 mAh Lithium-ion battery
• Expandable memory slot, supporting up to a 32GB microSD card (not included)
• Bluetooth v2.1 + EDR
• Stereo speakers
• 3.5mm headset

Thanks to a strong fourth quarter, Apple has passed LG to become the world’s third largest cell phone vendor by volume, according to new estimates from market research firm IDC. The worldwide mobile phone market grew 6.1%  year-over-year in the fourth quarter as the feature phone market continued to decline to its lowest growth rate in two years. Vendors shipped 427.4 million phones in the fourth quarter compared to 402.8 million units in the same quarter last year. Nokia and Samsung remained the top and No.2 vendors, respectively, though Nokia’s phone shipments slid 7.9% while shipments of Samsung handsets grew 17.6% compared to the same quarter in 2010. Read on for more

“Apple jumped into the third spot globally from the fifth spot last quarter thanks to a record-breaking quarter of shipments,” IDC stated in a press release. ”That represents the Cupertino-based company’s highest-ever ranking on IDC’s Top 5 global mobile phone leaderboard. The launch of Apple’s iPhone 4S smartphone, which is now available in over 90 countries (as of mid-January), was the primary reason the company leapt over LG and ZTE in 4Q11. Device sales in the U.S. and Japan were particularly strong given extra sales days in the quarter and carrier distribution.” The firm’s full press release follows below.

Worldwide Mobile Phone Market Maintains Its Growth Trajectory in the Fourth Quarter Despite Soft Demand for Feature Phones, According to IDC 

01 Feb 2012

FRAMINGHAM, Mass. February 1, 2011 – The worldwide mobile phone market grew 6.1% year over year in the fourth quarter of 2011 (4Q11), as the feature phone market declined faster than anticipated, dragging market growth down to its lowest point in over two years. According to the International Data Corporation (IDC) Worldwide Mobile Phone Tracker, vendors shipped 427.4 million units in 4Q11 compared to 402.8 million units in the fourth quarter of 2010. The 6.1% year-over-year growth was higher than IDC’s forecast of 4.4% for the quarter, but weaker than the 9.3% growth in 3Q11.

“The mobile phone market exhibited unusually low growth last quarter, which shows it is not immune to weaker macroeconomic conditions worldwide,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. “The introduction of high-growth products such as the iPhone 4S, which shipped in the fourth quarter, bolstered smartphone growth. Yet overall market growth fell to its lowest point since 3Q09 when the global economic recession was in full bloom.”

While smartphones continue to grow in popularity, feature phones still comprise the majority of all mobile phone shipments. “Feature phones accounted for a majority of shipments from four of the five market leaders during the quarter,” said Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends team. “Even though their proportion is eroding, feature phones maintain their appeal on the basis of price and ease of use.

“At the same time, feature phones are fighting to maintain their market share,” added Llamas. “To meet the challenge, feature phones are becoming more like smartphones, incorporating mobile Internet and third-party applications. While this may not stem the smartphone tide, it should slow down the rate at which smartphones are selected over feature phones.”

Regional Highlights

• In Asia/Pacific (excluding Japan), the feature phone market declined in conjunction with the region’s largest feature phone markets – China, India, and Indonesia. The impact on phone demand due to the holiday season, which generally means a sales uplift, was minimal in this category. Meanwhile, smartphones maintained their growth momentum as the iPhone 4S was well received in Australia, Hong Kong, Korea, and Taiwan. Competition in the Android market intensified as mid-range vendors, such as Lenovo, Coolpad, and Huawei, shipped large numbers in their home market of China. Elsewhere, the rest of the Android market was dominated by Samsung, followed by HTC and LG. Windows Phone gained some momentum thanks to sales of the HTC Titan and Radar and Nokia Lumia. In Japan, pent-up demand for mobile phones after last year’s natural disasters and weakened economy meant unusually high growth for the country’s mobile phone market. Smartphone sellers, such as Apple, fared particularly well while non-Japanese vendors continue to make incremental gains in the market.

• The Western European mobile phone market was impacted by lower demand, a result of the worsening economic environment. Smartphone growth was not enough to offset the feature phones decline, despite excellent performances from Apple and Samsung. Nokia experienced another difficult quarter as a result of its transition towards Windows Phones. Feature phone shipments were near historic lows, supported primarily by very low-end devices. Overall, the Central Europe, Middle East and Africa (CEMA) markets showed strong double-digit growth due in large part to Samsung’s continued strength in the regions. Bucking its global troubles, Nokia shipments flattened out in the regions after a strong third quarter, enabling it to remain the market leader in the regions. Apple continued to make quiet progress in the regions as well.

• In North America, smartphones held the spotlight with the launch of the Apple iPhone 4S, while LTE smartphones from HTC, LG, Motorola, and Samsung also made important gains. Research In Motion launched several new phones running on BB OS 7 during the quarter, and signaled a late 2012 timetable for its first BlackBerry 10 smartphones to reach the market, leaving an opportunity to its competitors to attack its market share.

• Smartphones also took center stage in Latin America with the launch of multiple models across the region, particularly sub-$200 Android models. The low price points have enabled broader appeal, and have also found placement among popular prepaid markets. Although smartphones continued to grab attention, low-cost feature phones ruled the market, with strong participation from Nokia, Samsung, and multiple Chinese vendors.

Vendor Highlights

Nokia finished the year exactly where it began: as the undisputed leader of total mobile phone shipments. The company took another step in its storied transition, having officially launched its first Windows Phone-powered Lumia smartphones and its Asha line of smartphone-like feature phones. While both have received positive response from the market, Nokia has been quick to adjust its retail experience, customer engagement, and hardware bug fixes. At the same time, the increased focus on the Lumia, combined with changing market conditions in key markets, has prompted Nokia to change its strategy on Symbian smartphones. Fewer Symbian devices will be sold in 2012. Still, Nokia’s broad distribution around the world and manufacturing capabilities make it a serious contender to maintain its leadership position.

Samsung finished the quarter and the year reaching new record levels: breaking the 90 million unit mark for the first time in a single quarter and breaking the 300 million mark for the first time in a single year. Leading the charge for Samsung was its growing smartphone volumes, boosted by the release of several high-end devices (Galaxy S II, Galaxy Note, Galaxy Nexus), mass market models (Galaxy Ace, and Galaxy Y), and new Windows Phone smartphones (Focus Flash and the Focus S). These, along with its own steadily growing feature phone volumes, pushed Samsung closer to market leader Nokia, with fewer than 20 million units separating them in 4Q11.

Apple jumped into the third spot globally from the fifth spot last quarter thanks to a record-breaking quarter of shipments. That represents the Cupertino-based company’s highest-ever ranking on IDC’s Top 5 global mobile phone leaderboard. The launch of Apple’s iPhone 4S smartphone, which is now available in over 90 countries (as of mid-January), was the primary reason the company leapt over LG and ZTE in 4Q11. Device sales in the U.S. and Japan were particularly strong given extra sales days in the quarter and carrier distribution.

LG‘s total volumes declined for the third consecutive quarter, sinking to levels not seen since the second quarter of 2007. Driving this result was a combination of waning interest in its aging feature phones and stalled smartphone volumes. In addition, from a full year perspective, LG posted the largest full year-over-year decline among the leading vendors. Still, the quarter did have some bright spots, including a return to profitability and a warm reception for its Optimus LTE smartphones across multiple markets. 2012 will feature more smartphones from LG, especially LTE-powered models, but the competition has similar smartphone strategies.

Chinese vendor ZTE nearly tied with LG for fourth place, with fewer than a million units separating the two vendors. Long known as a purveyor of entry level devices, ZTE’s smartphones increasingly moved into the spotlight. The company’s primary targets included countries throughout Asia/Pacific, but it also gained presence in EMEA and Latin America, and branched out into North America. Key models for the quarter included its popular mass-market Blade and mid-range Skate Android smartphones, and recently the company added its first Windows Phone-powered smartphone, the Tania.

The ZTE Optik Honeycomb-powered Android tablet is coming to Sprint for $99.99 with a two-year agreement, according to documents obtained by SprintFeed. The 7-inch Optik features a 1.2GHz dual-core processor with 16GB of internal storage and 1GB of RAM. The device also contains a microSD slot and a 4,000 mAh battery, but unfortunately it is a 3G-only tablet and does not feature LTE or WiMAX connectivity. With quad-core beginning to hit the market, Sprint will almost certainly be pushing the Optik’s low and very appealing price tag as its key selling point. The Optik will be available online on February 5th, and in stores by March 11th according to the leak.

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ZTE on Wednesday launched its budget-friendly Tania Windows Phone in the United Kingdom and at the same time, the company seemingly revealed information regarding the cost of Windows Phone licenses for Microsoft’s vendor partners. To license Windows Phone, a manufacturer pays anywhere from $20 to $30 per device according to ZTE executive Santiago Sierra, who revealed the figures while speaking with TrustedReviews. Manufacturers such as HTC and Samsung were widely believed to pay anywhere from $10 to $15 per license, however ZTE’s comments suggest that either the fee is much higher than previously estimated, or not all manufacturers are charged the same fees. This is the first time one of Microsoft’s Windows Phone partners has discussed licensing fees publicly.

[Via TheVerge]

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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.

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