VISIONMOBILE:2013 Mobile Developer Economic Report (III): Chapter I mobile duopoly (upper)

Chapter One: Mobile Duopoly

the widening gap between the beneficiaries and the Lost

Although many handset makers were pessimistic and observed a slowdown in handset shipments in the 3rd quarter of 2012, the annual compound growth rate for the industry has stabilized at 23% per cent since 2009. the growth is backed by rising smartphone sales, which now account for 40% of the total, with a huge increase of 12.5 percentage points since Q3 in 2011. This is because low-cost Android devices quickly nibble the market share of feature phones.

Android has established its dominance in the smartphone market in 2012. In the third quarter of 2012, Android accounted for 74% of smartphone sales, accounting for 30% of handset sales.

Driven by Android, Q1 in2012, Samsung became the largest handset-selling OEM, ending Nokia's 14-year rule . As described in VisionMobile's mobile insider's "Apple and Samsung profit recipe", Samsung's success on Android is due to three different factors:

- holds the most expensive hardware devices, including screens, memory, and processors, ensuring the earliest use rights and minimum BOM (bill of materials).

- quickly launch new phones based on the latest released Android version to the market. Beat other handset makers with the profits of an early adopter.

-Samsung 's powerful Galaxy brand and marketing campaign has helped it stand out from the 10 of crowded andriod handset makers.

Samsung has not only won the race for Android, but also challenged the iphone with a mobile phone. For the first time, the Android phone, Samsung's flagship Galaxy S3, became the most popular smartphone in 2012, selling more than the iphone 4S.

At the same time, Apple sales were down for most of 2012, although it was a great success in the Q4 in 2011. At the same time, Apple is expected to recover from 2012 Q4 through its powerful iPhone5 sales. Industry analysts are predicting iphone sales from 43M to 63M, with a wide range but higher than actual sales in any previous quarter.

mobile phone industry profit growth thanks to Apple

The booming mobile phone industry is supported by the mobile-platform duopoly, Google and Apple . The handset-making duopoly is Apple and Samsung , which add up to 46% of the total smartphone share and nearly all of the industry's profits. In 2013 Q3, Apple accounted for 60% of the eight largest handset OEM profits, and Samsung accounted for 38%.

Excluding Apple, the rest of the mobile industry's profits remained at 2009 levels , meaning that Apple gained all the added value of the application-based mobile computing paradigm it introduced. Over the same period, Samsung quickly shifted from a functional handset maker to a smart-phone leader, earning the remaining profits and eroding the profits of the veteran Nokia. Nokia has been slow to move from the best mobile to the best in its competitive base.

To maintain profitability, Apple, which is challenged by the Galaxy S3, needs to innovate on its unique product experience and continue to lead unique new experiences on TVs, e-readers, watches and more.

Wei: This figure does not understand, HTC more than 2%, whether because some manufacturers negative profits. Here are 10 manufacturers of data, so-called top 8 manufacturers how to choose

The original handset maker's lack of profit is not an unhealthy indication of the industry, but a sign of the industry's transformation. As mobile devices turn into mobile computers, the value is increasingly shifting to applications and third-party developers, much like the footprint of the PC industry. In the new style, only those manufacturers that provide a holistic experience through a tailored value chain , such as Apple and Samsung, are very similar to what the Harvard University Professor Michael Port observes in other industries.

Tablet Challenge PC status

Google raised the tablet standard by releasing low-priced (basic version $199) high-quality devices (Nexus 7), leaving itself at the bottom of the low-end flat-panel destruction and making the 7-inch tablet rise. Apple's response to the release of the cheaper ipad, which is a significant sign that Android is a threat on the tablet, is a rare concession from Apple in recent history. While Apple's iOS is still a tablet-led platform with a robust ecosystem of stable applications, the ipad will be challenged by the Nexus, as the iphone 4S sales are challenged by Galaxy S3.

the sales ratio for tablets and PCs is 1:3, but is expected to be flat for the next 1-2 years. To the PC of the duopoly Microsoft and Intel, which will be the key turning point, they are looking at the once computing domain dominance that is being moved by the mobile, while moving there by the Android-dominated platform, authorized by arm of the Qualcomm and MediaTek-led chip. While smartphones are barely visible to competitors for PCs and laptops, the tablet is a real PC replacement for most users using the scene. The danger for Microsoft and Intel is not just the shrinking of the PC market relative to the mobile computing market, but the uprooting of their dominance in their own (PC) markets.

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