AhmadCentral

Global Smartphone Shipments H1 FY2014-15

Hi guys, I wanted to share some information with you that you just won't find anywhere else. Hope its useful and a good read.

This report covers the global smartphone market for the first half of FY2014-15 which runs from April 1st through to September 30th. I have made sure the data used in this report is as accurate as possible and even included a number of data points that are not available publicly.

0. Global Market - 628.9m
A total of 628.9m smartphones were shipped between April 1st and September 30th this year. This is a 25% increase over the same period last year when a total of 501.7m smartphones were shipped. Smartphone shipments are set to continue growing and in the same period next year we should see over 750m smartphones shipped. Android held the largest share this half year with approximately 525m Android devices shipped. This is equal to around 84% market share. Apple shipped a total of 74.5m iOS devices in H1 giving them a total of just under 12% market share. Windows Phone was the third biggest OS with a total of ~18m shipments which gives them around 3% market share. Around 95% of all Windows Phone shipments were Lumia branded devices, around 29% of all Android smartphones were Samsung branded devices.

1. Samsung - 152.4m
Samsung was the biggest smartphone vendor once again with 152.4m smartphones shipped during H1 FY2014-15. This gives Samsung an overall 24% market share which is down from the 32% market share that Samsung had during the same period last year. Samsung has seen increased competition in China where a number of local Chinese brands have taken over, In Europe where price consciousness is starting to grow and even in the USA where Apple is putting up a fight. Although Samsung has long relied on its high-end devices, its mid-range and low-end models drove volume for the quarter and subsequently drove down ASPs. Samsung was the only company to lose significant market share out of the big 5. During H1, Samsung sold in a total of 29m Galaxy S5 units worldwide and Galaxy S4 cumulative sales have now reached over 65m.

2. Apple – 74.5m
Apple was the second largest smartphone vendor in H1 with a market share of 12%. During the same period last year, Apple sold in a total of 65m giving them a 13% market share at the time. Despite growing this year, it’s clear that Apple are not growing at the same rate as the smartphone market and therefore are expected to drop to under 10% market share before the end of 2015. Apple launched the iPhone 6 in the final month of H1 and sold in 10 million units during the opening weekend. The iPhone 5s sold in 39.5m units in CY2013 and Apple are expecting to ship more than 50m units of the iPhone 6 in CY2014. So far, Apple has sold in over 600 million iPhones since launch in 2007*.
*As of October 2014

3. Lenovo/Motorola – 50.3m
After acquiring Motorola, Lenovo is now the third biggest smartphone manufacturer in the world with an 8% market share. When looking at separate numbers for H1 FY2014-15 we can see that Lenovo sold in 32.7m units and Motorola sold in 17.6m units. Lenovo are aiming for another 50 million units during H2 to reach over 100 million cumulative units shipped by March 31st 2015. Lenovo has found success in emerging markets such as Africa, Middle East, Asia and its home country of China where it has released a number of low cost 4G handsets. Motorola has seen success in western markets but has started to tap into a number of emerging markets such as South America.

4. Huawei – 37.1m
Huawei have done very well this year gaining a 6% market share with over 37 million units shipped. This can be attributed with Huawei’s push with 4G LTE devices and brand promotion across all markets. The Huawei Ascend P6 has sold in more than 5 million units since launch, the Ascend P7 has sold in more than 3 million units and the Honor 6 has sold in over 2 million units. Huawei’s latest flagship phone, the Ascend Mate 7 has sold in 1 million units in China and Huawei are planning to sell in a further 600,000 units this month to the EMEA region. Around 35% of the phones shipped during H1 support 4G LTE and Huawei’s mobile device business has grown by 62% YOY. Huawei plan to ship over 60 million smartphones in CY2014.

5. Xiaomi – 35.0m
Xiaomi have come out of nowhere to become the fifth largest smartphone manufacturer worldwide. If you look at Motorola and Lenovo’s figures separately then Xiaomi would in fact be the fourth largest manufacturer. Not many people know who Xiaomi are as over 90% of their shipments are to China with the remaining 10% being sold in to emerging markets such as India and south east Asia. Xiaomi have yet to tap into the western market but it looks like they don’t need to as they’ve grown rapidly in the past year. During the same period last year Xiaomi barely scratched 10 million units. This year their shipment number has more than tripled. Xiaomi are aiming to ship 60 million units in CY2014 and 100 million units in CY2015. Xiaomi are set to overtake Huawei in terms of cumulative shipments this financial year.

6. LG Electronics – 31.3m
LG saw smartphone shipments increase by 30% YOY during H1 FY2014-15. This is thanks to the launch of the LG G3 and the L Series smartphones. The G3 itself has sold in more than 7 million units worldwide with over 1 million allocated to South Korea alone. LG plan to ship 60 million smartphones during CY2014. North America will be the biggest contributor to LG this year where shipments have grown by around 40%. LTE smartphones are up by over 100% YOY.

7. Coolpad – 24.4m
Coolpad are a smartphone brand in China. Despite the fact they only ship in China they are the 7th largest smartphone manufacturer in the world. In China they are leading the way in 4G smartphone shipments after launching over 12 new 4G models this year. Coolpad won’t ever reach the same shipment numbers that other Chinese manufacturers like Lenovo, Xiaomi and Huawei will get to because they ship domestically whilst the others rely on the international market for increased sales.

8. ZTE – 21.5m
ZTE are a Chinese brand who sell a number of low end devices and rebranded devices in the UK. They were once on par in terms of shipments with Huawei but Huawei have expended massively thanks to their international expansion, ZTE are still yet to grow massively outside of Asia. But Asia is still enough to give ZTE the 8th position in terms of worldwide shipments.

9. TCL – 19.6m
Many of you may not have heard of TCL, over here in the west they are known as Alcatel and they are becoming a major brand worldwide this year thanks to their “One Touch” series. During H1 they shipped a total of 19.6m which is a 130% increase from 8.5m during the same period last year. TCL has seen the biggest revenue increase in the Americas region and is on track to sell in over 35 million smartphones this fiscal year. What many people don’t know is that TCL is actually massive when you combine their smartphone + feature phone shipments, only 53% of their total shipments are smartphones. That means that TCL have already shipped 40 million smartphones + feature phones this Half year.

10. Sony – 19.3m
Sony is not in the best of places. They were committed to selling in 50 million smartphones for FY2014-15 but after looking at H1 results it looks like it won’t be possible. The Z series smartphones have been very popular for Sony but not popular enough to increase sales significantly YOY. In fact sales are actually around 300,000 less than they were during the same period last year. Sony has reduced its forecast to just 41m for FY2014-15.

Honourable Mention: Microsoft – 17.0m
After acquiring the Lumia brand, Microsoft hasn’t been able to break the top 10 with a total of 17.0m units sold in during H1 FY2014-15. The Lumia brand accounts for around ~95% of all Windows Phone smartphones and so it can be seen that Windows Phone hasn’t taken off yet. Growth has stagnated YOY and no one is expecting Windows Phone market share to grow at all. Windows Phone will always be that “third place” OS.

Others-
- Blackberry sold in over 4 million smartphones worldwide during H1 FY2014-15. This is down compared to the almost 6 million sold in during the same period last year. Blackberry has increased active BBM users to over 90 million despite falling shipment numbers. This can be attributed to the launch of the free BBM application on Android/iOS last year.
- HTC are not to be seen on the top 10 list anymore. In CY2013 they sold in over 23 million units and in CY2014 they are expected to sell in over 20 million units this calendar year. HTC has sold in more than 5 million units of its flagship M8 handset.
- Oppo plan to ship over 20 million smartphones in CY2014 after shipping 15 million in CY2013.
- Asus are planning to ship 8 million units worldwide in CY2014. In H1 FY2014-15 they have shipped a total of 3.6m units.
- Acer are planning to increase shipments to 5m units worldwide in CY2014
- One Plus, the new Chinese smartphone brand has shipped 500,000 units of their flagship smartphone worldwide.

Active smartphone install base:
There is now over 2 billion active smartphone users worldwide. Android accounts for 75% with 1.5 million active smartphone users, Apple accounts for 375 million, Windows Phone accounts for 60 million smartphone users and Blackberry has 40 million. The other category accounts for over 30 million.

Conclusion
It’s all about China. Xiaomi, Lenovo, Huawei, Coolpad, ZTE and TCL are all looking to ship between 35m-100m smartphones this calendar year. Samsung and Apple’s market share is continuing to shrink but all major Chinese manufacturers continue to grow year on year, Xiaomi being the best example to use with over 300% growth. Doesn’t mean to say Samsung and Apple are going anywhere soon, they will continue to be the top 2 but I wouldn’t be surprised to see Lenovo overtake Apple in 2016 and Samsung eventually lose its first place position in a few years. What is certain Is that the cumulative number of smartphones being sold in by Chinese manufacturers is going to continue growing significantly and they will have majority market share by 2015.

All data is sourced by me either through public Industry reports or private Industry sources.

Add a comment
13 comments

JanSt / MOD  Nov. 7, 2014 at 22:07

Thanks for that. :)
Bookmarked it....

mrew42  Nov. 8, 2014 at 08:18

Nice one Ahmad.
One small typo.
Active smartphone install base.. Android should be 1.5 billion active smartphone users. (not million)

AhmadCentral  Nov. 8, 2014 at 11:44

Cheers mrew, although Mobot is being stupid and not letting me edit anything today.

JanSt / MOD  Nov. 8, 2014 at 11:58

Nice one Ahmad.
One small typo.
Active smartphone install base.. Android should be 1.5 billion active smartphone users. (not million)
No it's "million" - per family, mrew, per family :p

JanSt / MOD  Nov. 8, 2014 at 11:59

Ahmad,
I couldn't fix that either - it's because there's work being done in the background to make
Mobot mo'better

mrew42  Nov. 8, 2014 at 13:06

You know Jan, for an Android hater that was pretty funny

JanSt / MOD  Nov. 8, 2014 at 13:16

You know Jan, for an Android hater that was pretty funny

I don't hate Android, I just.... No, I can't do this on a weekend ;)

matt101101 / MOD  Nov. 8, 2014 at 15:59

Some interesting figures in there, I love a good old fashioned, nerdy collection of data :).

It still surprises me how badly HTC made a mess of things, remember back in the Desire/Nexus One days when they were the undisputed king of Android?

On a mildly relevant note, one of my mates has just upgraded his Galaxy S3 Mini (God that thing was awful...) to an HTC One M8, I'm looking forward to having a play with it when I next see him.

AhmadCentral  Nov. 8, 2014 at 16:44

Some interesting figures in there, I love a good old fashioned, nerdy collection of data :).

It still surprises me how badly HTC made a mess of things, remember back in the Desire/Nexus One days when they were the undisputed king of Android?

On a mildly relevant note, one of my mates has just upgraded his Galaxy S3 Mini (God that thing was awful...) to an HTC One M8, I'm looking forward to having a play with it when I next see him.


HTC's peak was in 2011. The grew very rapidly but fell just as rapidly. They were even the top selling brand in the USA for one quarter in 2011 but now they don't lead in any market except for Taiwan. But selling 2 million phones in Taiwan every year isn't enough to make a global impact at all.

HTC are still selling their phones in the west but their share has shrunk considerably meaning that Chinese brands are shipping more in Asia alone than HTC are worldwide.

matt101101 / MOD  Nov. 8, 2014 at 16:59

Some interesting figures in there, I love a good old fashioned, nerdy collection of data :).

It still surprises me how badly HTC made a mess of things, remember back in the Desire/Nexus One days when they were the undisputed king of Android?

On a mildly relevant note, one of my mates has just upgraded his Galaxy S3 Mini (God that thing was awful...) to an HTC One M8, I'm looking forward to having a play with it when I next see him.


HTC's peak was in 2011. The grew very rapidly but fell just as rapidly. They were even the top selling brand in the USA for one quarter in 2011 but now they don't lead in any market except for Taiwan. But selling 2 million phones in Taiwan every year isn't enough to make a global impact at all.

HTC are still selling their phones in the west but their share has shrunk considerably meaning that Chinese brands are shipping more in Asia alone than HTC are worldwide.

It in no way surprises me that HTC aren't doing well any more, it just surprises me how quickly and monumentally they made a mess of everything.

They basically make one good phone per year (their flagship) and even that doesn't sell nearly as well as the equivalent phones from Samsung and Apple (despite arguably being a better phone...).

Almost all of their lower end phones are even more overpriced and underspecced than the crap Samsung churn out, which is probably why they don't make any real money. Only Apple will ever be able to get away with solely releasing devices which costs north of £500, without catering at all for the £100-£200 market. Well, Samsung could maybe do it, but they'd be a much smaller company than they are at the moment.

AhmadCentral  Nov. 8, 2014 at 20:33

Yup, 5 million M8's sold in vs 29 million GS5's sold in during the same period isn't great tbh.
HTC aren't going to be recovering from the position they are in now.

Thankfully they still have brand awareness so they're not going to disappear but they're not going to be significant any more.

Even companies like Micromax, who only operate in India, are going to overtake HTC

Samsung are relying a lot more on their low end and mid range handsets these days than on their flagships. The S5 is selling the same / slower compared to the S4 and the Note 4 is selling the same / slower than the Note 3. In an ideal world Samsung would want to see their flagship shipments grow... and they're not.... they're low end shipments are growing though. But not enough to maintain the market share they previously had.

CTPAHHIK  Nov. 8, 2014 at 23:28

Nice overview. Thank you

AhmadCentral  Nov. 9, 2014 at 14:26

Thanks.

One thing you guys may be interested to know is that there are 2 billion active smartphone users worldwide. And there is ~4.6 billion active mobile phone users worldwide. So that means that smartphone penetration rate isn't even at 50% worldwide yet and there is still everything to play for. The global smartphone market is growing 25% every year and soon enough we're going to see who the real big players are

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