IHS: SAMSUNG DISPLACES NOKIA AS TOP CELLPHONE BRAND IN 2012

     (The following press release from IHS Media Relations was received by 
e-mail. The sender verified the statement.) 
Samsung Displaces Nokia as Top Cellphone Brand in 2012 and Takes Decisive 
Smartphone Lead Over Apple 
El Segundo, Calif. (Dec. 18, 2012)— For the first time in 14 years, wireless 
communications giant Nokia will not sit atop the global cellphone business on 
an annual basis at the end of 2012—with Samsung set to seize the mobile handset 
market’s top rank.                                                               
Samsung is expected to account for 29 percent of worldwide cellphone shipments, 
up from 24 percent in 2011, according to the IHS iSuppli Mobile and Wireless 
Communications Service at information and analytics provider IHS (NYSE: IHS). 
Nokia’s share this year will drop to 24 percent, down from 30 percent last 
year, as presented in Table 1.                                                   
A dislodged Nokia will cause Samsung to rise to first place for the full year 
of 2012, up from the second rank in 2011, the first time the South Korean 
electronics titan will occupy the top on a yearly basis. 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.                         
“The competitive reality of the cellphone market in 2012 was ‘live by the 
smartphone; die by the smartphone,’” said Wayne Lam, senior analyst for 
wireless communications at IHS. “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. Samsung’s successes and Nokia’s 
struggles in the cellphone market this year were determined entirely by the two 
companies’ divergent fortunes in the smartphone sector.”                         
Global 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’s success vs. Nokia’s nosedive
Samsung's success has been built on its “fast follower” strategy for design and 
manufacturing. The 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.                                                                     
Meanwhile, Finnish-based Nokia is mired in transitioning its smartphone line to 
the Windows operating system, resulting in declining shipments for the company. 
Sales of the company’s older Symbian-based phones have plunged, while its new 
Microsoft Windows 7-based handsets haven’t been able to make up for the loss so 
far.                                                                             
Samsung is expected to post the best performance among the Top 5 smartphone 
brands in 2012, with its share of global smartphone shipments rising 8 points 
to 28 percent, up from 20 percent in 2011. In contrast, 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.                  
Samsung pulls ahead of Apple                                                     
Samsung and Apple ended 2011 in a neck-and-neck battle for leadership in the 
smartphone market, with only 1 percentage point of market share separating 
them. However, entering the 2012 year, Samsung moved ahead decisively ahead of 
Apple with a wide range of Android smartphone offerings. 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 duopoly represents the dominant force in the smartphone 
market, with the two companies accounting for 49 percent of shipments in 2012, 
up 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, meanwhile, lacking a fresh new version of its operating system, has seen 
its market share slip as the company’s traditional enterprise consumers left 
the platform for both Apple’s iOS and Google’s Android. RIM’s share will fall 
to 5 percent in 2012, down from 11 percent in 2011.                              
2013: Smartphones go mainstream
With the growth momentum behind smartphones, IHS anticipates that the 
smartphone penetration rate in 2013 will elevate smartphones into the majority 
among all phone segments, at 56 percent. This event will mark a significant 
tipping point in the mobile handset market, as the smartphone takes a dominant 
position in the industry.                                                        
For more information, please contact: 
Jonathan Cassell
Senior Manager, Editorial
jonathan.cassell@ihs.com
Direct: + 1 408 654 1714
Mobile: +1 408 921 3754 
Or 
IHS Media Relations
press@ihs.com
+1 303 305 8021 
(bjh) NY
 
 
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