Smartphone sales overtake feature phones for the first time

Smartphone sales overtake feature phones for the first time

A surge in sales from devices such as the Samsung Galaxy S4 and iPhone 5 has seen smartphone market share overtake feature phones for the first time.

Gartner’s most recent market report revealed smartphone sales have leapt 46.5% in Q2 2013 from the same period last year as 225million units reached end users. In contrast, feature phone sales dropped 21% year-over-year with 210million units sold.

Samsung continues to dominate in terms of smartphone sales and mobile phone sales overall. The Korean manufacturer saw smartphone market share increase by 2% to 31.7%, while overall market share grew from 21.5% to 24.7% over the course of the year. Apple remains second in the smartphone table, but saw a decrease of over 4% market share. Research analyst at Gartner Anshul Gupta said: ‘Smartphones accounted for 51.8% of mobile phone sales in the second quarter of 2013, resulting in smartphone sales surpassing feature phone sales for the first time.’

Gupta warned Samsung against putting all its efforts into just the smartphone segment of the market, and said Apple’s expect dive into the mid-market realm represents a risk for the manufacturer. He said: ‘We see demand in the premium smartphone market come mainly from the lower end of this segment in the $400-and-below ASP mark. It will be critical for Samsung to step up its game in the mid-tier and also be more aggressive in emerging markets. Innovation cannot be limited to the high end.

‘Although the possible new lower-priced [Apple] device may be priced similarly to the iPhone 4 at $300 to $400, the potential for cannibalisation will be much greater than what is seen today with the iPhone 4. Despite being seen as the less expensive sibling of the flagship product, it would represent a new device with the hype of the marketing associated with it’

Meanwhile, Blackberry’s woes continue after announcing it was up for sale earlier this week, as it was overtaken by Windows Phone as third OS of choice for the first time. The struggling manufacturer only has 2.7% of market share, down 2.5 percentage points on last year. Android continues to go from strength to strength with just under 15 percentage points year-on-year growth to 79% of the market.

Gupta added: ‘While Microsoft has managed to increase share and volume in the quarter, Microsoft should continue to focus on growing interest from app developers to help grow its appeal among users.’

Author: Matthew Campelli

Written by Mobile Today
Mobile Today


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