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Smartphones Outsell Feature Phones for First Time

8/14/2013 03:06 PM EDT
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LarryM99
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Market is converging
LarryM99   8/14/2013 4:18:52 PM
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I can't imagine that either Microsoft or Apple is happy with the story that these numbers tell. It would appear that Android, even with the fragmentation problems that it has, is on its way towards becoming the de facto standard for smartphones. Combine that with the decline in PC sales and Google could end up with a stranglehold on this market. Can the monopoly police be far behind?

junko.yoshida
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I thought it already did
junko.yoshida   8/14/2013 5:42:58 PM
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well, this sounds like an old news to me.

More Smartphones Were Shipped in Q1 2013 Than Feature Phones, An Industry First According to IDC. (http://www.idc.com/getdoc.jsp?containerId=prUS24085413)

So, it is obviously going on for a while. I think what the data tells us is that smartphones are no longer either high-end or value added handsets. It's now the mainstream, mass market product available in volume -- on the verge of getting highly commoditized.

Can't be a good news for anyone in the smartphone market.

chanj0
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Gain of Market Share
chanj0   8/14/2013 6:40:38 PM
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According to the data, the overall market size of smartphone has increased by 46.5%. It is substantial. Among all OSs, Android, iOS and Microsoft have gained in number of handset shipment. The struggling blackberry has shrinked. The bleeding seems to be unstoppable.

To common wisdom, the attraction of any smartphone OS is heavily depending on availability of popular apps and the diversity of apps. RIM took a seemingly good direction by making BB10 able to run Android apps. Why is Blackberry failed to gain attention? The -ve movement is puzzling to me.


On the bright side, Microsoft has roughly 83% gain. Although 3.3% market share is too small to celebrate, the executive shall not be too upset of the gain. Question is whether the trend can be improved. Will you consider Windows phone if there are more and better apps?

rick merritt
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Someday all phones will be smartphones
rick merritt   8/14/2013 6:57:30 PM
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"Someday all phones will be smartphones," Jeff Hawkins once told me. We're tsaking a step closer to that with this milestone.

It is amazing to see how many of them are now Android based

Tom Murphy
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Re: I thought it already did
Tom Murphy   8/14/2013 6:59:30 PM
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You're right, Junko. Not much surprise here. Certainly the directly has been clear for a long time. But the more interesting part is what this means for mobile broadband service providers and, in turn, to retailers and other businesses that will benefit from the thundering herd.  Revenue for the carriers will surge. 

One question in my mind is whether there is enough spectrum in the US to meet the demand.  I already hear many, many complaints from 4G phone owners (myself included) who can't get service when they need it, or get service that is so slow that it remind you of 2G.  If service deteriorates and the number of smartphones soar, many of the phone owners will question why they have a smartphone at all.  Most of us spend enough time on computers...do we really need to spend another $50 a month to get inferior service when we're on the go?

Tom Murphy
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Re: Gain of Market Share
Tom Murphy   8/14/2013 7:03:40 PM
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ChanjO:  To answer your question: yes, I will consider a Microsoft phone and a Surface tablet if a) the price become more competitive (this is really what drove the Droid market), b) More apps are available (and they will be, because the Droid and iOS markets are saturated), and c) Microsoft continues to include basic Office on the Surface RT. 

It would be nice to have a phone and tablet that can open Office docs without acquiring an expensive App that doesn't quite work correctly. The business world is not about to start running on Open Office or Google Docs. Not this decade.

mcgrathdylan
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Re: I thought it already did
mcgrathdylan   8/14/2013 7:40:20 PM
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Except Apple and Samsung. I think this is a case of disagreement among two market research firms: IDC, who calculates that the balance shifted in the first quarter, and IHS, who calculates it happened in the second quarter. Either way, seems as though smartphones are the lead dog now. But I thought feature phones were making a comeback of sorts?

krisi
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"smart"???
krisi   8/14/2013 9:38:08 PM
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Perhaps with this milestones we can stop calling the phones smart or dumb...they will all be smart very soon...the problem with the smart label is what you do afterwards...very smart? super smart?...this applies to phones, grids (as in smart grid), appliances (as in smart appliances) etc...would it be better to start classifiying them based on communication technology they are using? (2G, 3G or 4G)

mcgrathdylan
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Re: "smart"???
mcgrathdylan   8/14/2013 9:44:19 PM
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I think the next level is genius phone. :)

Charles.Desassure
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About Smartphones....
Charles.Desassure   8/14/2013 10:12:10 PM
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I do believe that there is a different market for each cell phone., therefore, I am not surprised that the sale of cell phones continues to increase.   In terms of smart cell phones, I do not believe that all cell phones will be Smartphone in the future, unless the price is reduced.  We have to remember that there are customers who cannot afford  to buy a Smartphone.  I have a Windows smartphone and I love it!

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