Samsung to account for 29% of cellphone shipments in 2012 from 24% in 2011

Telecom Lead Asia: Samsung is expected to account for 29 percent of worldwide cellphone shipments, up from 24 percent in 2011, according to IHS.

Nokia’s share this year will drop to 24 percent, down from 30 percent last year.

For the first time in 14 years, Nokia will not sit atop the global cellphone business.

Nokia will fall to the runner-up spot, the first time since 1998 it won’t be in peak position for overall cellphone shipments during a full calendar year.

Wayne Lam, senior analyst for wireless communications at HIS, said: “Smartphones represent the fastest-growing segment of the cellphone market—and will account for nearly half of all wireless handset shipments for all of 2012.”

Smartphone shipments are set to rise by 35.5 percent this year, while overall cellphone shipments will increase by approximately 1 percent. This rapid growth will propel 2012 smartphone penetration to 47 percent, up from 35 percent in 2011.

Samsung strategies

Samsung company produces dozens of new smartphone models every year that address all segments of the market, from the high end to the low end. Samsung monitors the big trends in smartphone design, user needs and unmet market opportunities, then creates products to fit those markets quickly and efficiently.

Nokia is mired in transitioning its smartphone line to the Windows operating system, resulting in declining shipments for the company. Sales of Nokia’s Symbian-based phones have plunged, while its new Microsoft Windows 7-based handsets haven’t made up for the loss so far.

Samsung’s global smartphone shipments will increase 8 points to 28 percent from 20 percent in 2011. Nokia will suffer the biggest decrease, with its share forecast to plunge by 11 points to 5 percent in 2012, down from 16 percent in 2011, as presented in Table 2.

What is happening to Apple

In 2012, Samsung moved ahead decisively ahead of Apple with a range of Android smartphones. Samsung made significant gains in both the high end as well as the low-cost market with its Galaxy line of smartphones. This diversified market approach has allowed Samsung to address a larger target audience for its phones than Apple’s limited premium iPhone line.

The Samsung and Apple account for 49 percent of shipments in 2012 from 39 percent in 2011.

While Nokia and Canada’s Research in Motion (RIM) also held double-digit shares of the market in 2011, Samsung and Apple remain the only two players that will each command a double-digit portion of the smartphone space in 2012.

HTC and RIM face challenges

Along with Nokia, two other entities—HTC of Taiwan, as well as RIM—struggled throughout 2012 in the smartphone market.

HTC is facing a tough battle against Samsung, an acknowledged technology powerhouse, in the Android smartphone market. Market share for HTC will shrink to 5 percent in 2012, down from 9 percent in 2011.

RIM’s share will fall to 5 percent in 2012, down from 11 percent in 2011.

Smartphones Prediction

IHS anticipates that the smartphone penetration rate in 2013 will elevate smartphones into the majority among all phone segments, at 56 percent.

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