The latest numbers from Canalys suggest that Android Wear is definitely not taking off as fast as many would have hoped, and that devices running Google’s smartwatch operating system haven’t exactly sold like hotcakes. Over the entirety of 2014, somewhere in the realm of just over 720,000 Android Wear device were grabbed up by consumers, making up almost 1/6 of the total 4.6 million smart wearable bands shipped.
I’m sure we’re all “tired” to hear about the tablet/PC debate and which format will outsell one another next year. That being said, a new Canalys report caught my eye as it projects that in 2014 tablets will account for 50 percent of the PC market. I consider projections that indicate tablets will become half of the desktop, notebook, and tablet devices that make up the entire PC market to be notable because of the sheer size.
Research firm Canalys is out today with its latest report tracking worldwide smart mobile device shipments for Q1 with Android accounting for almost 60% of smart mobile devices shipped by OS. That’s compared to a 19.3% share for Apple and approximately 18.1% for Microsoft. Keep in mind Canalys’s report also includes notebooks, in addition to tablets and smartphones, which account for the majority of Microsoft’s share. When looking at tablets alone, Apple continued its lead with 46.4% share in the quarter, although Canalys warned Apple “lost share to its Android-based rivals for the third consecutive quarter.”
‘Spearheaded by Google and Amazon, the commoditization of the tablet market has happened far quicker than that of the wider PC market,’ said Canalys Senior Analyst, Tim Coulling. ‘Profit margins are being squeezed and vendors without a low cost structure will find it hard to compete. A solid range of must-have accessories and a software and services strategy are vital as vendors will increasingly need to make revenue around their devices.’
When it comes to smartphones, the report has Android at roughly 75.6% of shipments with around 32% of those shipments coming from Samsung. We know Apple sold around 37 million iPhones in the quarter but, as always, we warn that the stats from Canalys don’t include shipped vs sold data. Expand Expanding Close
Smartphone manufacturer HTC just announced that it closed its South Korea office due to low device sales in the country. The Taiwan-based company, which produces many Android handsets, suffered financial declines in recent quarters due to stiff competition in the market.
“Taiwanese handset maker HTC Corp. is set to pull out of South Korea following fruitless attempts to stay afloat in the local market dominated by the world’s top smartphone maker Samsung Electronics Co., market watchers said Monday.
On Friday, HTC officially announced its plan to close its Seoul office, a move that comes just a few months after its local unit head ended a brief six-month stint due largely to sluggish sales.”
“HTC did not specifically mention layoffs, and said it was encouraging affected employees to apply for open positions within the company. ‘This is a hard decision that has direct impact on people who have contributed to the growth HTC has experienced the past several years,’ it said in a statement.”
South Korea has been a challenging market for foreign vendors including HTC to break into, said Nicole Peng, an analyst with research firm Canalys.
HTC had a 2 percent share of the smartphone market in the country for the year 2011, and a 1 percent share in this year’s first quarter, she said in an email. Korean vendors, including Samsung, LG and Pantech, dominate with about a 90 percent of the market.
If you deemed the nearly 20 million smartphones Samsung shipped in the June quarter an impressive figure, brace yourself for even more extraordinary achievement in the second half of 2011 as DigiTimesreports that Samsung “has placed orders for 30 million touch sensors used to make four-inch AMOLED screens”. Suppliers Chunghwa Picture Tubes and others are said to be the prime beneficiaries of Samsung’s booming smartphone business. Of course, Samsung sources touch sensors from other suppliers so their final order may well exceed the quoted figure. As evident in the below chart fromAsymco’s Horace Dediu, the Korean company’s been growing at an exponential rate, eclipsing Apple’s 142 percent annual growth in iPhone shipments.
The company, however, all but displaced Apple, which just toppled Nokia to become the world’s leading smartphone vendor. Being the leading Android backer, Samsung’s success has helped the Google operating system reach more than 50 percent platform share of all smartphones, more than double the iOS share of 19 percent, per latest Canalys survey. That said, it’s entirely plausible that this year Samsung could overtake Apple and become both the world’s leading smartphone vendor, while Apple remains the industry’s leading player in terms of revenues and profit. Also notable, a gap between Samsung and market leader Nokia is narrowing fast…
