Global Smartphone Shipments Jump 43 Percent to 60 Million Units in Q2 2010

Boston -- According to the latest research from Strategy Analytics, global smartphone shipments grew a relatively healthy 43 percent year-over-year to reach 60 million units in Q2 2010. Healthy operator subsidies, vigorous competition between premium-tier vendors and a growing range of lower-cost models continued to drive the upswing.

Alex Spektor, Analyst at Strategy Analytics said, “Global smartphone shipments reached a record 60 million units during Q2 2010, accounting for 19 percent of handset volumes, and growing a healthy 43 percent from 42 million in Q2 2009. Sales are being driven at an above-average rate by strong operator subsidies, vigorous competition between high-end vendors and a growing tide of lower-cost models using operating software like Symbian and Android.”

Neil Mawston, Director at Strategy Analytics, added, “The global smartphone industry is growing volume but the industry’s value is beginning to feel the effects of intensifying competition. Dozens of vendors from the telecoms, PC and consumer electronics industries are piling into the market and driving down prices. Even established brands such as Nokia, RIM and Apple are finding it increasingly hard to raise prices and profits in the face of such fierce competition.”

Other findings from Strategy Analytics’ Q2 2010 Global Smartphone Market Share Update report include:

* RIM shipped 11.2 million smartphones worldwide in Q2 2010, comfortably beating Apple’s 8.4 million units during the quarter. RIM is the number one smartphone player in North and South America, but its global marketshare of 19 percent is still a long way behind Nokia’s leading 40 percent share;

* Apple shipped 8.4 million iPhones worldwide in Q2 2010. Apple had a mixed quarter. Apple’s iPhone shipments, revenues and profitability continued to outperform, but public criticism of the company is mounting. Apple was criticized for its intensive production methods in China, while the iPhone has been heavily criticized for its poorly designed touchable antenna. The honeymoon period for Apple in the mobile world is clearly coming to an end. We believe Apple may have lost some heartshare in recent weeks because of its perceived mishandling of the antenna problem, and Apple will have to work hard during the second half of the year to stop lost heartshare converting into lost marketshare.