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Smartphones and Tablets – Who will be the Winners and Losers?
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© IDC May-11 1

Smartphones and Tablets:
Winners and Losers?
Francisco Jeronimo
Research Manager European Mobile Devices

Eszter Morvay
Research Manager IDC EMEA Personal Computing
May 26, 2011
Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

Content .Q&A © IDC May-11 3 .Vendor Performance .Western European Phone Market .Tablet Market Trends .Conclusion .Smartphone Operating System Trends .Competitive Analysis .

May 2011 May-11 4 .What is a Smartphone? A smartphone is a handset that runs a high-level operating system © IDC Source: IDC European Quarterly Mobile Phone Tracker.

1 72% Smart Phones 200 150 iPhone 176M SMP iPad 100 4% SMP 50 0 2004 © IDC 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: IDC European Quarterly Mobile Phone Tracker. May 2011 May-11 .Western Europe Smartphone Market  Western Europe 300 250 10M SMP Financial Crisis No.

Western Europe Mobile Phone Market  Total WE Mobile Phone Shipments by Device Type 300 202 148 200 171 185 189 186 196 250 105 211 220 230 238 76 2014 150 159 170 156 100 179 142 147 124 106 95 125 0 2004 © IDC 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015 Source: IDC European Quarterly Mobile Phone Tracker. May 2011 May-11 70 50 85 145 162 176 39 72 246 Smartphones Feature Phones .

May 2011 May-11 .Smartphone Penetration 300 Smartphone Penetration: 63% 250 72% 11% 4% 50% Smartphones: 200 150 100 Total Market Growth: +20%* * CAGR 2010–2015 +5%* 50 0 2004 © IDC Feature Phones: -11%* 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: IDC European Quarterly Mobile Phone Tracker.

b) Percentage of smartphones of total shipments per country for 2007. 2010 and forecast for 2015. b) 82% France b) Germany b) 79% 70% 50% 42 43% 30 3 11% 10 4 12% 10 2015 b) 4 12% 2007 20 2010 2015 b) 33% 29 2015 b) 2007 2010 2007 2010 Italy 60% Spain 33% 56% Netherlands 83% 26% 18 14 1 16% 2015 2007 51% 9 3 © IDC 9% 7 2 2007 12% 7 2010 4 2010 2015 2007 2010 2015 Notes: a) Shipments in millions of units. 2010 and forecast for 2015. May 2011 May-11 .K. per country in 2007. Smartphones Feature Phones 8 Source: IDC European Quarterly Mobile Phone Tracker.Smartphone Penetration by Country U.

Winners and Losers © IDC May-11 9 .

Winners and Losers: Total Phones  Vendor Market Shares 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2004 © IDC 35% 11% 15% 16% 12% 2% 4% 16% 15% 4% 6% 12% 11% 8% 10% 4% 9% 8% 25% 20% 11% 9% 13% 12% 12% 8% 10% 5% 31% 6% Others HTC RIM Apple Sony Ericsson Motorola Samsung Nokia 22% 26% 28% 9% 15% 16% 27% 34% 35% 35% 40% 40% 37% 34% 28% 1Q11 2005 2006 2007 2008 2009 2010 Source: IDC European Quarterly Mobile Phone Tracker. May 2011 May-11 10 .

Winners and Losers: Smartphones  Vendor Market Shares 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2004 © IDC 17% 15% 16% 7% 7% 4% 10% 7% 3% 9% 12% 15% 12% 8% 6% 4% 9% 2% 7% 5% 10% 8% 12% 16% 22% 17% 21% 6% Others 21% 7% 6% HTC RIM Apple Sony Ericsson Motorola Samsung Nokia 71% 66% 65% 61% 53% 50% 33% 14% 20% 1Q11 2005 2006 2007 2008 2009 2010 Source: IDC European Quarterly Mobile Phone Tracker. May 2011 May-11 11 .

Smartphone Operating Systems © IDC May-11 12 .

May 2011 .Shipments by OS: Smartphones Millions 200 180 160 140 120 100 80 60 40 WinMob/WP7 iOS Symbian Linux BlackBerry OS Android 2% 15% 24% 13% 44% 20 0 2004 © IDC 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 May-11 Source: IDC European Quarterly Mobile Phone Tracker.

All rights reserved. .Media Tablet Trends Eszter Morvay Research Manager IDC EMEA Personal Computing Copyright IDC. Reproduction is forbidden unless authorized.

Or Are They? Source: IDC EMEA PC Tracker and IDC EMEA Media Tablet Tracker © IDC May-11 ...Tablets Are Not New .

they run lightweight operating systems such as Apple's iOS and Google's Android OS and can be based on either x86 or ARM processors.. which run full PC operating systems and are based on x86 processors. and less than 14in. They are typically more portable and leverage lighter-weight hardware than portable PCs.  Media tablets are tablet form factor devices with color displays larger than 5.0in. This distinguishes them from tablet PCs. Media tablets do not include built-in hardware keyboards. but typically use a finger for navigation and data input. Media tablets support a broad range of applications. © IDC May-11 . which differentiates them from single-purpose-focused devices such as ereaders.  Media tablets may support cellular voice connectivity as a secondary feature.Media Tablet Definition  Media tablets are multifunction electronic devices designed and marketed to enable access to and creation of a wide range of digital content and services including media and communications. and can support multiple connectivity technologies.

From Smartphones to Notebooks: Expansion of the Mobile Computing Space Notebook Ultraportable Netbook Media tablet eReader MID Smartphone CONSUMPTION © IDC CREATION May-11 .

unique biases.Multiple Usage Scenario: Multiple Devices  It's not a question of whether … … it's just how many  One type does not preclude another  Different needs for different people  Unique needs. unique preferences © IDC May-11 18 .

Winners and Losers © IDC May-11 19 .

Can They Beat Apple? Yes. They Can! Western Europe Media Tablet Forecast By OS 30 iOS 25 20 Android webOS BlackBerry OS M Units 15 10 5 0 2010 2011 2012 2013 2014 2015 Source: IDC EMEA Media Tablet Tracker © IDC May-11 .

Competitive Analysis Brand awareness Rapid pace of innovation Ecosystem Price Resistance from B2B although evaluating Plethora of devices Aggressive price points Broader routes to market Lack of differentiation between brands Resistance from B2B although evaluating Large PC footprint: both consumer and commercial Synch across various webOS devices Lack of leverage from Palm acquisition Costly R&D: huge risk Large smartphone footprint Leverage from enterprise installed base Weak consumer footprint Uneven geo coverage. strong reliance on a few markets © IDC May-11 21 .

What About Windows? Source: IDC EMEA PC Tracker and IDC EMEA Media Tablet Tracker © IDC May-11 .

limited content creation Lack of security © IDC May-11 23 .Competitive Analysis Media Tablet Instant on All day battery life User interface Applications Slate Tablet PC Compatibility across a huge Windows installed base Security Manageability Price Lack of applications User experience Product design Mostly content consumption.

Cannibalization? Units. Millions 250 Media Tablets Smartphones 21% 21% 20% 46 42 200 19% 15% 7% 29 19 125 150 37 100 5 50 145 162 176 105 72 0 2010 © IDC 2011 2012 2013 2014 2015 May-11 24 .

Media tablets will clearly be the hottest growth opportunity over the next 18 months in the consumer mobile/computing space. Smartphones will account for 72% of total handset market by 2015. but the competitive environment will expand. 5.Conclusion 1. 6. Android will be the biggest operating system from 2011. 8. 4. Apple iPad will dominate in the short term. Smartphones will grow at a CAGR of 20% from 2010 to 2015. © IDC May-11 25 . Expansion of the mobile/computing space: new usage scenarios drive increased penetration of secondary and tertiary devices. increasing interest from businesses. 7. 2. No cannibalization is expected between media tablets and smartphones. Primary focus on consumers. 3.

Q&A © IDC May-11 26 .

com @fjeronimo © IDC May-11 27 .com Eszter Morvay + 44 (0) 20 8987 7229 emorvay@idc.Contacts Francisco Jeronimo + 44 (0) 20 8987 7186 fjeronimo@idc.

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