Apple’s iPhone 5, Android Ready to Rule 2012 Smartphone Market?

By the end of 2011, a number of smartphone vendors will have placed some very big bets on their latest smartphones.

Apple reportedly plans to debut iPhone 5 in September or October. Research In Motion just debuted a slate of BlackBerry devices it will push aggressively to businesses and consumers. And Microsoft — hand-in-hand with Nokia and other hardware manufacturers — will begin to make a second large drive for its Windows Phone platform. A number of manufacturers — including HTC and Samsung — will also continue to produce handsets loaded with Google Android.

Nobody can predict the future with certainty, and it would be a fool’s game to try and forecast the various vendors’ precise market share a year from now. That being said, there is enough data floating around to make some (relatively) educated guesses about the state of the smartphone market in 2012.

For the most part, analysts seem to think Apple will continue its robust sales run. "Apple has yet to top Nokia’s single-quarter volume record of 28.1 million units, Ramon Llamas, an analyst with research firm IDC, wrote in an Aug. 4 note. "But, given Apple’s momentum in the smartphone market, it may not be a question of whether Apple will beat that milestone, but when."

The IDC note suggested that Apple’s unit shipments increased 141.7 percent in Q2 2011 compared with the same period in 2010. Samsung’s unit shipments rose 380.6 percent in the same period, while HTC’s increased 165.9 percent and RIM’s rose 10.7 percent. The big loser was Nokia, which declined 30.4 percent in Q2 2011 compared with the same quarter a year ago.

Both HTC and Samsung benefited from their Android phone portfolios. However, the note suggests that RIM is facing some pitfalls in the quarters ahead: The company has released only a few new models so far this year; most of its shipments are older, less expensive models that have allowed competitors to grab mindshare and market share with multiple new models.

To top that off, many vendors have targeted business users with enterprise-grade smartphones, which has long been RIM’s stronghold.

RIM is depending on its latest slate of BlackBerry smartphones, which offer revamped hardware and the new BlackBerry 7 OS, to act as a sort of placeholder until its QNX-powered smartphones can hit the market sometime in 2012. However, analysts haven’t been sharing the company’s public optimism about the new devices.

"We cut our estimates below consensus based on checks that handset shipments will be worse than expected in the Nov. Q despite the sell-in of the new OS 7 handsets," Peter Misek, an analyst with Jefferies & Co., wrote in an Aug. 4 note to investors. "We continue to believe the story hinges on QNX, which we believe will be delayed to the second half of 2012 vs. guidance of early CY12."

Meanwhile, Nokia finds itself struggling in the fallow months before it releases its first devices running Windows Phone. The Finnish company has been bleeding users ever since it announced the abandonment of Symbian, its homegrown mobile OS, in favor of Microsoft’s offering. Analysts have suggested overall adoption of Windows Phone is relatively stagnant.

For more, read the eWeek article Apple’s iPhone, Android Look to Dominate 2012 Smartphone Market.

CIO Insight Staff
CIO Insight Staff
CIO Insight offers thought leadership and best practices in the IT security and management industry while providing expert recommendations on software solutions for IT leaders. It is the trusted resource for security professionals who need network monitoring technology and solutions to maintain regulatory compliance for their teams and organizations.

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