Worldwide Smart Connected Device Market, Led by Samsung and Apple, Grew 27.1% in the Third Quarter, According to IDC

  Worldwide Smart Connected Device Market, Led by Samsung and Apple, Grew
  27.1% in the Third Quarter, According to IDC

Business Wire

FRAMINGHAM, Mass. -- December 10, 2012

The worldwide smart connected device market – a collective view of PCs,
tablets, and smartphones – grew 27.1% year-over-year in the third quarter of
2012 (3Q12) reaching a record 303.6 million shipments valued at $140.4 billion
dollars. Expectations for the holiday season quarter are that shipments will
continue to reach record levels rising 19.2% over 3Q12 and 26.5% over the same
quarter a year ago. According to the International Data Corporation (IDC)
Worldwide Quarterly Smart Connected Device Tracker, 4Q12 shipments are
expected to reach 362.0 million units with a market value of $169.2 billion
dollars. Holiday season growth will be driven by tablets and smartphones,
which are expected to grow 55.8% and 39.5% year-over-year respectfully, while
PCs are expected to decline slightly from this quarter a year ago.

From a vendor perspective, Samsung maintained the top position in 3Q12 with
21.8% market share based on shipments. Apple, which ranked second overall in
shipments, led all vendors in value with a total of $34.1 billion in 3Q12 and
an average selling price (ASP) of $744 across all device categories. Following
Samsung's 21.8% share and Apple's 15.1% share were Lenovo (7.0%), HP (4.6%),
and Sony (3.6%). While Samsung, Apple, and Lenovo have all grown share over
the past year, HP, which is virtually non-existent in the mobile space, has
dropped its share from 7.4% in 3Q11 to 4.6% in 3Q12 with shipments declining
-20.5% during that time.

"The battle between Samsung and Apple at the top of the smart connected device
space is stronger than ever," said Ryan Reith, program manager, Worldwide
Mobile Device Trackers at IDC. "Both vendors compete at the top of the tablet
and smartphone markets. However, the difference in their collective ASPs is a
telling sign of different market approaches. The fact that Apple's ASP is $310
higher than Samsung's with just over 20 million fewer shipments in the quarter
speaks volumes about the premium product line that Apple sells."

Looking forward, IDC expects the worldwide smart connected device space will
continue to surge well past the strong holiday quarter and predicts shipments
to surpass 2.1 billion units in 2016 with a market value of $796.7 billion
worldwide. IDC's research clearly shows this to be a multi-device era,
although market dynamics are shifting in terms of product category. In 2011,
PC's – a combination of desktop and portable PCs – accounted for 39.1% of the
smart connected device market. By 2016 it is expected to drop to 19.9%.
Smartphones will be the preferred product category with share growing from
53.1% in 2011 to 66.7% in 2016. Tablets will also grow significantly with
share growing from 7.7% in 2011 to 13.4% in 2016. The shift in demand from the
more expensive PC category to more reasonably priced smartphones and tablets
will drive the collective market ASP from $534 in 2011 to $378 in 2016.

"Both consumers and business workers are finding the need for multiple 'smart'
devices and we expect that trend to grow for several years, especially in more
developed regions," said Bob O'Donnell, program vice president, Clients and
Displays. "The advent of cloud-based services is enabling people to seamlessly
move from device to device, which encourages the purchase and usage of
different devices for different situations."

Top 5 Smart Connected Device Vendors, Shipments, and Market Share, Q3 2012
(shipments in millions)
               3Q12 Unit     3Q12          3Q11 Unit     3Q11        3Q12/3Q11
Vendor       Shipments   Market      Shipments   Market    Growth
                             Share                       Share
Samsung      66.1        21.8%       33.5        14.0%     97.5%
Apple        45.8        15.1%       33.1        13.9%     38.3%
Lenovo       21.1        7.0%        13.2        5.5%      60.0%
HP           14.0        4.6%        17.6        7.4%      -20.5%
Sony         11.0        3.6%        8.7         3.7%      25.4%
Other        145.6       48.0%       132.7       55.6%     9.7%
Total        303.6       100.0%      238.9       100.0%    27.1%
Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10,

Smart Connected Device Market by Product Category, Shipments, Market Share,
(shipments in millions)
Product         2016 Unit     2016         2012 Unit     2012        2016/2012
Category      Shipments   Market     Shipments   Market    Growth
                              Share                      Share
Desktop PC    151.0       7.2%       149.2       12.5%     1.2%
Portable PC   268.8       12.8%      205.1       17.2%     31.1%
Smartphone    1405.3      66.7%      717.5       60.1%     95.9%
Tablet        282.7       13.4%      122.3       10.2%     131.2%
Total         2107.8      100.0%     1194.0      100.0%    76.5%
Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10,

In addition to the table above, a graphic illustrating IDC's smart connected
devices forecast for 2011-2016 is available at The chart is intended
for public use in online news articles and social media. Instructions on how
to embed this graphic can be found by viewing this press release on

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International Data Corporation
Bob O'Donnell, 650-350-6482
twitter: @bobodtech
Ryan Reith, 650-350-6242
Twitter: @ryanreith
Michael Shirer, 508-935-4200
Twitter: @IDC
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