Which mobile brand will win in 2013?
The smartphone market has had an interesting start to the year. In the past couple of weeks, Apple’s shares have plummeted, Samsung was declared the number one smartphone manufacturer, BlackBerry revealed it was ditching the name Research In Motion and creating a Super Bowl commercial for its new BlackBerry 10 smartphones, and Nokia recorded its first quarterly profit for 18 months. These announcements reflect a big change to the market, some of which are explored below.
Apple
You may have heard that Apple’s share price closed at the lowest in a year just last week. However, this mostly comes down to analyst expectations rather than actual results. Apple was expected to hit $54.88 billion revenue, but only reached $54.50 billion so naturally its share price dropped. The reality is that Apple is still growing but not as fast as analysts had hoped.
Apple’s recent results for its 2013 fiscal first quarter show a 29% increase year on year of iPhones sales – it sold a record 47.8 million iPhones during the quarter. If you look at our Australian InMobi Network Research for the same period, it even shows some of this growth. Between October and December last year Apple served a record 1.48 billion impressions.
Interestingly though, earlier this month the Wall Street Journal reported that Apple had cut component orders for the iPhone 5 due to ‘weaker-than-expected demand’. This isn’t the best news for Apple leading into its next quarter and poses big questions on whether it can maintain its growth rates.
For Apple to stay competitive, it now more than ever needs to release a new smartphone device. We anticipate that Apple will answer this call and release its next version of the iPhone, either an advanced high end handset or a cheaper one to compete with Android’s varying price-points, around June.
Samsung
Samsung has been driving enormous growth and is now clearly leading the smartphone market. According to the latest IDC report, Samsung sold 63.7 million smartphones in Q4 2012, a manufacturer record for a single quarter. For all of 2012 it sold 215.8 million smartphones, a manufacturer record for the year. This left Samsung with a 30.3% market share in 2012 with its closest competitor, Apple, recording 19.1%.
Samsung is the new market leader for a few reasons; it has a handset for all price-points, it continues to introduce new technologies and its handset life cycle is rapid. In the past year Samsung has released 20 phones to Apple’s one and recently there have been rumours that Samsung’s upcoming Galaxy SIV will feature a new pixel layout offering the highest resolution display yet.
It’s a given that Samsung will continue to push the bounds of smartphone technology and look and feel to keep Apple at bay. As a result of this, we predict that Samsung will double Apple’s market share in the next year.
BlackBerry
Newly rebranded BlackBerry (previously Research In Motion) has fallen far behind over the past few years. It has repeatedly delayed releasing a new smartphone and this has cost them dearly. The company’s stock reached a nine-year low in September last year and shipments of BlackBerry phones have dropped from 46% of the market in 2008 to only 2 per cent in 2012, according to IDC. Now BlackBerry’s time has finally come with the company announcing yesterday in New York that it will have one recognisable brand name and that it will be introducing two new BlackBerry 10 smartphones into the market, the Q10 and Z10.
Each device features a revamped operating system and design which bloggers and journalists have so far been quite positive about, but the jury is still out on whether it will be successful or not in bringing BlackBerry back in the game. This is really the last chance for BlackBerry and if the launch doesn’t go well then we may not see them in the smartphone future. To give its marketing campaign every chance of success, BlackBerry has even invested around $4 million in its first-ever Super Bowl commercial. Pinning a company’s future on an expensive 30-second Super Bowl spot is extremely brave but as we have seen it the past it can have a huge impact on sales and sentiment towards brands. However we’re still not convinced it will save BlackBerry.
Nokia
Nokia’s situation is finally looking up with the company reporting last week that it made a net profit of 202 million euros (AUD $257 million) in Q4 2012, the first quarterly profit it has seen in 18 months. Nokia sold 6.6 million smartphones during this time, including 4.4 million of its flagship Lumina device.
Nokia has had good support from carriers in the past and provided affordable phones, but device costs are coming down across the board so they will need to start looking more towards innovation. Unlike Samsung and Apple which have both focused on developing the smartphone screen, Nokia has been revolutionising other smartphone components, such as wireless charging. It has yet to hit the sweet spot but it needs to keep its rate of innovation up to continue to change sentiment.
Globally, smartphones are becoming the Achilles' heel for mobile manufacturers. With smartphone competition heating up, now is the time for manufacturers to make a move otherwise they will meet their demise.
Francisco Cordero is general manager and regional director of InMobi Australia and New Zealand.
Please login with linkedin to comment
Latest News
DMARGE Founder Unveils Creator-Led Social Media Agency Feedstar
New creator-led social media agency Feedstar to be aimed directly at Gen Zs. Well, they'd hardly want print, would they?
TV Ratings (02/05/2024): A total of 1,753,000 Aussies Witness Port Adelaide’s Defeat
Seven's AFL numbers almost double that of the NRL last night. The NRL still easily winning for ruptured ACLs.
Hotglue Cashes In With La Trobe Financial Digital Media Account
Hotglue staffers learning their cashflows from their collaterals today after nabbing La Trobe Financial's digital media.
M&C Saatchi’s Sydney Creative Lead Exits
B&T's stopping short of calling it a revolving door at M&C at the present, but there's definitely heat on the hinges.
Taylor Swift’s Music Re-Enters TikTok As Universal Pens Landmark Deal
Yes, B&T may have spent 152 hours failing to get Taylor Swift tickets, but, as you'll read here, it's all behind us now.
HAVAS Red launches inaugural Influencer White Paper
Havas Red has debuted its first influencer white paper. Unless you print it out in colour, of course.
Two Sides Global Campaign Reports Increasing Greenwashing As Organisations Focus On Sustainability
New report confirms greenwashing's on the rise. Apparently Mars' 'work, rest & play' claims also under investigation.
Aruga Launches New HQ & Changed Ownership Structure
PR agency Aruga proves Brisbane is 'so hot right now'. So hot in fact, Adelaide's had to go on anti-anxiety meds.
Delicious & American Express Partner To Launch Month Out 2024 In Sydney
Cost of living got you eating noodles prepared in the two-minute style? Why not live vicariously through this.
Aussie Ad Market Continues Decline In March
The belt-tightening in adland shows signs of a turnaround soon. Bar the belt-loosening at the all-you-can-eat buffet.
VMA Focuses On Skills And Training For Members
If there was a post-COVID hangover (bar the anti-vax ranters) it was the rise in skills shortages. Here's another one.
Nearly 90% Of Consumers Want Transparency About AI Images, Finds Getty Images Report
Study finds consumers want transparency around AI images. Couldn't care less about photoshopped magazine covers.
The National Breast Cancer Foundation Partners With VML To Boost Funds
Anyone else feel we've exhausted the office morning tea for cancer? B&T proposes the office moonshine still instead.
Perry ‘Pez’ Lazaris Named New National Hit Network Announcer
Why is it mandatory for the media to only publish the nicknames of people in radio & underworld crime figures?
Before Adland: Garry Dawson’s Journey From Teacher To Marketer
Here, the Hopeful Monsters marketer talks his shift from the classroom to the room wherever marketers congregate.
Scott Cam Urges Tradies To Prioritise Sun Protection
The Block host promoting sun protection to tradies. Also, don't try getting into the RSL after 6pm wearing high viz.
PubMatic Study: Advertising On Retail Media Is 50% More Effective Than Social Media
New study finds retail media 50% more effective than social. B&T says two-for-one Tim Tams trumps the lot.
From MOWING to life GROWING: Jim Penman launches ‘Life Coaching’ services
Can't decide on getting the hedges trimmed or finding a deeper meaning to life? You're in luck with this new venture.
Budweiser Brazil Turns Songs That Name Drop The Iconic Brand Into Spotify Ads
It's strange that Budweiser never found a market among beer-swilling Aussies. Then again, neither did the fluffy duck.
Effie Worldwide Strengthens Board With 6 New Members
B&T hopes everyone's wearing their Maseur sandals at the Effies, as it's standing room only at the next board meeting.
Special Enlist A Penguin Named Nigel In Latest Energy Campaign For Contact
Special unveils Nigel the penguin in work for energy provider Contact. Apparently Percy the peacock was booked.
Anya Taylor-Joy, Chris Hemsworth & George Miller Ignite Sydney For Epic Mad Max Launch
The Mad Max film franchise is Australia's cinematic gift to the world. That & Chris Hemsworth's near perfect cheekbones.
IAS Launches First-To-Market Integration With Roblox To Provide 3D Immersive Measurement
Always thought you could do with better 3D immersive measurement? Happy days are ahead here.
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.
Bumble Reveals New Brand Identity To Usher In New Era Of Dating
It's ironic that all the dating apps market themselves as having no weirdos, freaks or mummy's boys like their rivals.