Tag: Smartphones

  • Honor going to ground to boost presence in Philippines

    Honor going to ground to boost presence in Philippines

    Chinese smartphone maker Honor said it plans to open brick-and-mortar stores in the Philippines in a bid to become one of the top three vendors in the nation.

    Honor entered the market last month, initially offering its flagship Honor 10 and other devices through online retailers. The Huawei sub-brand accounts for 10 per cent market share in China after just four years, says its country director for the Philippines, Wang Yang.

    “We believe the Philippine market is perfect for Honor brand because we see the brand as being for the young,” says Yang.

    Physical retail stores will open as early as next month, starting in the capital, with the possibility of opening regional outlets, he says.

    Honor entered the Philippines through Shopee on May 15 with 500 units being sold in an hour during a flash sale.

    Its flagship Honor 10 has AI-enhanced cameras, dual 24 + 16 megapixel lenses on the rear and 24 megapixels on the front. The in-house Kirin 970 processor helps the phone recognise about 500 scenarios in 22 categories.

    The Honor 10 has four gigabytes of RAM, 128 gigabytes of storage and a 3400 mAh battery that can recharge 50 per cent of power in 25 minutes.

    Yang says the handset’s biggest draw would be its iridescent paint job inspired by the Northern Lights. A fingerprint sensor is practically hidden on the phone’s chin, below the 5.84-inch full-HD screen.

  • Smartphone Sales Will Drop for Second Straight Year, IDC Predicts

    Smartphone Sales Will Drop for Second Straight Year, IDC Predicts

    Global smartphone sales are expected to fall for the second year running this year, before  returning to growth next year, according to analysis by the International Data Corporation (IDC).

    In the research house’s Worldwide Quarterly Mobile Phone Tracker, smartphone shipments are forecast to drop 0.2 per cent this year to 1.462 billion units, after a 0.3 per cent decline last year. Looking further out, IDC expects the market is to grow roughly 3 per cent annually from next year onwards, with worldwide shipments reaching 1.654 billion in 2022 and a five-year compound annual growth rate (CAGR) of 2.5 per cent.

    The biggest driver of last year’s decline was China, where smartphone sales declined 4.9 per cent year-on-year. And the IDC expects sales in China to decline a further 7.1 per cent this year before flattening out next year.

    The biggest growth market in Asia Pacific continues to be India, with volumes expected to grow 14 per cent and 16 per cent this year and next.

    “Chinese OEMs will continue their strategy of selling large volumes of low-end devices by shifting their focus from China to India,” says IDC. “So far, most have been able to get around the recently introduced Indian import tariffs by doing final device assembly at local India manufacturing plants. As for components, almost everything is still being sourced from China.”

    “With 2017 now behind us a lot of interesting market dynamics are unfolding,” says Ryan Reith, program VP with IDC’s Worldwide Quarterly Mobile Device Trackers. “Even though it declined 5 per cent last year, China remains the focal point for many given that it consumes roughly 30 per cent of the world’s smartphones.

    “But plenty of pockets of growth can be found beyond China. India is now grabbing headlines and the market itself is going through some rapid transformation. Local Indian manufacturing continues to ramp up, despite still having a heavy dependence on China for components. The boom in India is likely to continue in the years to come, but the move toward building up local production has certainly caught the eye of many in the industry.”

    Outside of Asia Pacific, the biggest regions for growth will be the Middle East, Africa, and Latin America. All three regions have relatively low penetration rates and plenty of upsides, says IDC. Economic challenges have been the main inhibitor over the past two years, but IDC expects consumer spending to rise throughout the forecast and smartphones to be a big benefactor.

    5G opportunity

    The other catalyst to watch will be the introduction of 5G smartphones. IDC predicts the first commercially ready 5G smartphones will appear in the second half of next year with a ramp up across most regions happening in 2020. IDC projects 5G smartphone volumes to account for roughly 7 per cent of all global smartphone sales in 2020 or 212 million in total. The share of 5G devices should grow to 18 per cent of total volumes by 2022.

    “Although overall smartphone shipments will decline slightly this year, the average selling price (ASP) of a smartphone will reach US$345, up 10.3 per cent from the $313 of last year,” said Anthony Scarsella, research manager with IDC’s Worldwide Quarterly Mobile Phone Tracker.

    “This year will continue to focus on the ultra-high-end segment of the market as we expect a surge of premium flagship devices to launch in developed markets. Devices featuring large Amoled bezel-less displays, advanced camera functions, and an overall increase in speed and performance will be the driving factor in the increase of ASPs. Moving forward, we can expect this trend to continue as the ASP for a smartphone will continue to grow throughout the forecast period. In 2022, the final year of our forecast period, the average selling price for a smartphone will be $362, resulting in a five-year CAGR of 2.9 per cent.”

    Android vs Apple

    Android’s share of t sales is expected to remain relatively stable at 85 per cent of total global smartphone sales. Volumes are expected to grow at a five-year CAGR of 2.5 per cent, with shipments totaling 1.41 billion by 2022.

    “There is no question that Android is the OS of choice for the mass market and nothing leads us to believe this will change,” says IDC. “Given the large number of Chinese OEMs dependent on Google’s OS, as well as components from other US companies like Qualcomm, it will be interesting to see how things develop with all the discussion about a US-China trade war. Android OEMs continue to drive down the cost of new technology features at a rapid pace. IDC estimates that 98 per cent of Android phones will ship with screens larger than five inches by 2022, with 36 per cent being six inches or larger. While some of these will remain premium flagship models, the aggregate ASP of Android phones with a six-inch screen or greater by 2022 is projected to be $414.

    Meanwhile, iPhone volumes are expected to grow 2.6 per cent this year to 221 million. IDC is forecasting iPhones to grow at a five-year CAGR of 2.4 per cent, reaching volumes of 242 million by 2022. With rumors of some upcoming larger screen iOS smartphones, IDC has changed its screen size forecast for Apple by introducing volumes greater than six inches. Products are likely to begin shipping in the fourth quarter of 2018, with volumes ramping up and accounting for 36 per cent of all iPhones shipped by 2022.

  • CK Hutchison enters global alliance with Xiaomi

    CK Hutchison enters global alliance with Xiaomi

    Hong Kong conglomerate CK Hutchison has entered an agreement with Chinese smartphone maker Xiaomi covering distribution of Xiaomi smartphones.

    Under the agreement, CK Hutchison will bring Xiaomi smartphones, as well as IoT and lifestyle products, to its vast network of telecom and retail stores.

    CK Hutchison’s 3 Group and AS Watson brands will be able to broaden their product range, while Xiaomi will benefit from a wider international presence.

    The agreement will initially cover 3 Group’s stores in Hong Kong, Austria, Denmark, Ireland, Italy, Sweden in the UK and AS Watson stores in Hong Kong, Ireland, UK and the Netherlands.

    Xiaomi also plans to extend its collaboration with CK Hutchison’s operator channels in European markets.

    Recent research from Canalys estimates that Xiaomi had its strongest revenue growth in three years during the first quarter, with unit shipments growing 116% year-on-year to 28.1 million. More than half (nearly 57%) of these were shipped outside of China.

    “Xiaomi has done a great job recovering its position in its home market,” said Canalys Senior Director Nicole Peng. “While China has been a growth engine and profit driver for Xiaomi’s rising service revenue, overseas market expansion has helped it boost market share, both of which will be critical to the success of its IPO,” Canalys senior director Nicole Peng said.

    “It is important to note that Xiaomi’s rapid expansion will bring with it substantial overheads, which will make sustaining its original lightweight cost structure increasingly difficult.”

  • China smartphone sales fall sharply in Q1

    China smartphone sales fall sharply in Q1

    Chinese smartphone shipments suffered a steep decline in the first quarter, according to estimates from two separate research firms. Canalys estimates that shipments had their biggest ever decline during the quarter, falling more than 21% year-on-year to 91 million units – the lowest sales since the fourth quarter of 2013.

    Eight of the top 10 smartphone vendors recorded annual declines in shipments, with Gionee, Meizu and Samsung’s sales shrinking to less than half of their sales figures from the same quarter a year ago, the company said.

    Market leader Huawei recorded a modest growth rate of 2% to 24 million units, while second placed Oppo saw a decline of 10% to 18 million units and third ranked Vivo saw shipments decline 10% to 15 million units.

    But Xiaomi managed to buck the trend with a shipment growth of 37% to 12 million units, overtaking Apple to take fourth place. Canalys Research analyst Mo Jia said the results show that the Chinese smartphone market is increasingly becoming a four-horse race..

    “The level of competition has forced every vendor to imitate the others’ product portfolios and go-to-market strategies,” he said.

    “But the costs of marketing and channel management in a country as big as China are huge, and only vendors that have reached a certain size can cope. While Huawei, Oppo, Vivo and Xiaomi must contend with a shrinking Chinese market, they can take comfort from the fact that it will continue to consolidate, and that their size will help them last longer than other smaller players.”

    Counterpoint: Chinesee smartphone market faced its steepest ever decline during the quarter

    Meanwhile Counterpoint estimates that the Chinese smartphone market fell 8% year-on-year and 21% sequentially, with the top five brands capturing a record 82% of the market.

    The company predicts that Xiaomi recorded 51% growth and increased its market share to 13.1%, but still placed Apple ahead with a market share of 14.3%.

    The research firm’s top three rankings mirror that of Canalys, with Huawei on top with a market share of 21.6%, followed by Oppo at 17.6% and Vivo at 15.5%.

    Looking ahead, Canalys has predicted that the Chinese smartphone market will return to growth in the second quarter.

    “The inventory issues that Oppo and Vivo suffered in Q4 and Q1 are now behind them. New smartphones will definitely entice people to upgrade, but vendors are more careful of avoiding oversupply in the channel,” Jia said.

    “China’s smartphone market may see a short period of stagnancy as vendors refocus on research and development, relying on new use cases to excite refreshes rather than spending heavily on the channel and marketing.”

  • Hong Kong Customs Roll Up Counterfeit Phone Gangs

    Hong Kong Customs Roll Up Counterfeit Phone Gangs

    A territory-wide Hong Kong Customs raid has resulted in arrests and netted 100 smartphones suspected of being counterfeits.

    During the one-day Operation Snow Leopard, officers raided 12 shops and two storage places, seizing smartphones with suspected false trademarks or bearing possibly false trade descriptions. They also found about 3400 accessories also suspected of being fakes.

    Arrested were 18 men and a woman between 21 and 48 years old, including shop owners and salespersons, while the market value of the seized goods is estimated to be about HK$1.5 million.

    Customs had earlier received information alleging that some phone-repair shops sold suspected counterfeit smartphone accessories, and some shops were suspected to have engaged in unfair trade practices by selling old smartphones as new products, or selling parallel-imported smartphones as authorised products.

    After an in-depth investigation with the help of trademark owners, Customs took the enforcement action yesterday and raided 12 shops.

    Customs also cracked down on a syndicate in connection with export, supply and distribution of suspected counterfeit smartphones and accessories. A total of 64 suspected counterfeit smartphones and 330 suspect accessories were seized from the storage places in Sham Shui Po and Tsing Yi.

    A 32-year-old male head and 34-year-old female member of the syndicate were arrested. With the investigation ongoing, more arrests are possible.

    Intellectual Property Investigation Bureau chief Catherine Yip says the successful detection of the case was attributed to reporting by members of the public and the full help of trademark owners.
    She says Customs will step up inspection and enforcement with the approach of the Labour Day Golden Week.

    Customs says traders need to comply with the requirements of the Trade Description Ordinance (TDO) as the sale of counterfeit goods can lead to a fine of up to $500,000 and imprisonment for five years.

    Meanwhile, Customs has broadened reporting options by introducing a dedicated crime-reporting email account (crimereport@customs.gov.hk).

    Intelligence Bureau chief Kitty Poon says public reports received by Customs have risen progressively by 21 per cent, from 31,994 in 2015 to 38,819 last year. Of these, the proportion received via email has grown from 30 per cent in 2015 to almost 40 per cent last year.

  • 5G devices to save smartphone makers

    5G devices to save smartphone makers

    Global demand for smartphones will continue to be slow until 2022 when 2.02 billion phones are forecasts to be sold. The telecom industry is banking on 5G devices to reignite sales, but momentum will only begin from 2021. CCS Insight expects over 600 million 5G-enabled mobile phones will be sold in 2022.

    With new smartphones offering little more than an incremental update on previous models, the research firm fears that demand is unlikely to grow significantly for the next few years. Marina Koytcheva, CSS Insight VP adds, “Consumers in mature markets have been underwhelmed by the latest crop of flagship smartphones. Price hikes for top-end devices, with some of the latest and greatest devices hitting $1,000, have certainly not helped, and it’s little surprise more customers have decided they might as well stick with the device they already own.”

    Koytcheva notes that it’s not all doom and gloom [US and European markets]: “Although mature markets are suffering, there’s still growth potential in Africa, the emerging markets of Asia-Pacific, and India.

    CCS Insight believes the balance between developed and emerging markets will remain relatively stable, resulting in the global market for mobile phones edging up very slightly over the next five years, eventually delivering sales of more than 2 billion units in 2022.

    CCS Insight also believes that manufacturers are increasingly looking to 5G technology to reignite growth in mature markets. “The arrival of 5G handsets offers a glimmer of hope for embattled smartphone makers. They’re betting that this new, faster technology will give consumers a reason to upgrade their phones,” Koytcheva comments.

    She cautions, however, that phone-makers will have to be patient as they wait for this next wave of upgrade activity. “Although we expect the first 5G smartphones will hit the market in 2019, really significant demand won’t start until 2021, eventually having a positive impact in 2022, when we expect over 600 million 5G phones will be sold, accounting for 31% of the global market.”

    CCS Insight also notes that while advanced markets are focused on the transition to 5G, consumers in emerging markets are taking up smartphones more slowly than previously expected. Koytcheva comments, “The rising cost of components for entry-level smartphones and the arrival of affordable feature phones that support 4G networks mean that many people who otherwise might have bought their first smartphone are sticking with a feature phone for now”.

    CCS Insight’s research indicates that the trend is most prominent in India, but is also evident in other emerging markets. As a result, the research company believes smartphones will account for less than half of all mobile phones sold in India, emerging markets in Asia-Pacific and Africa in 2018.

    Koytcheva is optimistic: “Although the next couple of years are going to be tough, we’re certain that the shift to smartphones in emerging markets hasn’t evaporated — it’s merely been delayed. This year worldwide sales of smartphones will top 1.8 billion units by 2022.”

  • Philippines smartphone shipments fall for first time

    Philippines smartphone shipments fall for first time

    Smartphone shipments in the Philippines have declined 7% to approximately 15 million units in 2017, according to IDC.

    The research firm’s latest Asia/Pacific Quarterly Mobile Phone Tracker and Asia/Pacific Quarterly Personal Computing Device Tracker also revealed that tablet shipments fell 30% year-over-year (YoY) to just 1 million units.

    Smartphone shipments recorded the first decline since its introduction into the local market as intense competition from top brands – such as Samsung, OPPO, and vivo – resulted in some vendors being ousted from the market.

    Tablets continued to decline as their significance in the market waned due to the lack of practical use cases and cannibalization by smartphones with larger screen sizes.

    According to IDC, Philippine users are shifting to handsets with higher specs and better features, going against the traditional observation of device users in the Philippines being among the more price-sensitive in Asia-Pacific.

    Jensen Ooi, Senior Market Analyst, Client Devices, IDC ASEAN noted that while end users will continue to consider specs as one of the important factors when purchasing their next smartphone, the next “wow” factor they will be looking out for are the features that enhance their experience.

    “In the short term, they would also consider the latest appealing features with the most relevant use cases, namely multiple cameras that enhance the photography and 18:9 screens that give a better viewing experience. These features were only limited to high-end flagship phones in the past but have become more commonly available in reasonably priced midrange (US$200<US$400) handsets as well now,” he added.

    On-device AI remains at this point.

    Despite this, the average selling price of smartphones in 2017 grew to $134, a 13% YoY increase with ultra low-end smartphones (<$100) holding the lion’s share of the market, accounting for 59% of all smartphones in 2017 compared with 67% in 2016. Meanwhile the combined share of low-end ($100-$199) and midrange ($200-$399) smartphones grew to 35% from 28% in 2016.

    Samsung and Chinese brands such as OPPO and vivo were the key driving brands that led to the growth of the low-end and midrange segments in 2017. “Heavy marketing campaigns and lucrative sales promoter incentives enabled these brands to strengthen their mindshare in the local market, increase their shipments, and grow their respective market shares,” Ooi said.

    “The assault of these brands affected the sales of some of the players, resulting in them reducing their supplies, which ultimately impacted overall smartphone shipments.”

    From a screen size perspective, phablets (5.5”-6.9”) recorded significant growth in recent years, accounting for about a quarter of smartphone shipments in 2017. “As mobile content continues to grow, smartphones have become the primary device for basic productivity and everyday media consumption, and this fuels the need for larger screens and higher specs,” Ooi added.

    The loser in this trend are slate tablets (7”-10.9”) which are seeing declining says because they cannot offer the same level of practicality that phablets provide.

    Trending in 2018

    The smartphone market in the Philippines is expected to rebound in 2018 as competition between popular brands, which will continue to strengthen their positions, and local and minor brands, which will continue to struggle to stay relevant, intensifies. “We expect smartphone vendors to continue shipping in more phablets and equipping their new models with enticing features, such as dual cameras, thin bezels, and on-device artificial intelligence,” Ooi concluded.

  • Three reasons why we are addicted to smartphones

    Three reasons why we are addicted to smartphones

    Apple recently announced the launch of its iPhone 8 and iPhone X, which come with sleek, new features. Apple also hopes to start a new community around the iPhones. Ahead of the launch, Angela Ahrendts, head of retail at Apple, said their stores will be called “Town Squares,”and would double as public spaces, complete with outdoor plazas, indoor forums and boardrooms.

    The much-anticipated product launch was followed by millions who watched the event via livestream and on internet forums, blogs and in the news media.

    I, too, was among them.

    So, what draws people to these phones? Surely, it is not just the groundbreaking design or the connection with a community. As a minister, psychotherapist and scholar studying our relationship with hand-held devices, I believe there is much more going on.

    In fact, I’d argue, as I do in my book “Growing Down: Theology and Human Nature in the Virtual Age,” the phones tap into our basic yearnings as humans.

    Here are my three reasons why we love our phones.

    1. Part of an extended self

    Our sense of self is shaped while we are still in the womb. The development of the self, however, accelerates after birth. A newborn, first and foremost, attaches herself to the primary caregiver and later to things – acquiring what has been called an “extended self.”

    The leading 20th-century American psychologist William James was among the first to argue for an extended self. In his “Principles of Psychology,” James defined the self as “the sum total of all that a man can call his, not only his body and his psychic powers, but his clothes and his house, his wife and children.” Losing any of this extended self, which could include money or another prized object, as he explained, could lead to a sense of great loss. In early childhood, for example, babies and toddlers cry if they suddenly lose their pacifier or favorite soft toy, objects that become part of their extended selves.

    Phones, I argue, play a similar role. It is not uncommon for me to feel a sudden onset of anxiety should I drop my phone or am unable to find it. In my experience, many individuals feel the same way. It is also reflected in how often many of us check our devices.

    Psychologist Larry Rosen and his colleagues at California State University found that 51 percent of individuals born in the 1980s and 1990s experienced moderate to high levels of anxiety when they were kept from checking in with their devices for more than 15 minutes. Interestingly, the percentage drops slightly – to 42 percent – for those born between 1965 and 1979.

    This is primarily because they came into being during a time where hand-held technologies were only beginning to make their entry. For this group, phones became part of their extended self only as late teens or as young adults.

    2. Recalling caring relationships

    Not just extended selves, smartphones in particular, with their games, apps and notifications, have become an essential aspect of our sense of self.

    And here’s how:

    Drawing on psychodynamic theory, which holds that childhood experiences shape personality, I argue that our relationship with technology mirrors the environment our parents created in caring for us. This environment, as British psychiatrist Donald W. Winnicott writes, functions around touch, a keen awareness of what the infant needs, and establishing and maintaining eye contact.

    In the same way, we, as adults, reexperience touching and belonging through our phones. Technology affords a space where the self can be satisfied, play and feel alive – a space previously provided by caregivers.

    When we hold our phones, it reminds us of moments of intimacy – whether from our childhood or from our adult life. The brain chemical dopamine and love hormone oxytocin, which play a role in the addiction “high,” kick in. These chemicals also create a sense of belonging and attachment.

    Holding our phone has the same effect as when a parent looks lovingly at her child or when two lovers gaze into each other’s eyes. In the words of Apple executive Philip Schiller: The iPhone X “learns who you are.”

    Theological reflection also supports what we have learned about dopamine and oxytocin. The Judeo-Christian tradition, for example, identifies God as an intimate God who seeks face time and creates caring environments. In Bible, Numbers 6:24-26, we read:

    “The Lord bless you and protect you. The Lord make his face shine on you and be gracious to you. The Lord lift up his face to you and grant you peace.”

    3. Fulfills need to produce and reproduce

    Anthropologist Michael Taussig reminds us that it is in our “second nature to copy, imitate, make models, [and] explore difference” as we try to become a better or different self.

    Phones help us do that. We take pictures, manipulate images, join discussions, curate a selfie and reach out to others. By texting back and forth, we weave together a conversation. Through searching, we become knowledgeable (even if we lack wisdom). Thus, we join ancestors who painted on cave walls and told stories around fires.

    It should not come as a surprise then that smartphones currently account for 46 percent of all internet use. This is expected to grow to 75 percent by 2021. We are destined, it seems, to live with our phones in hand.

    Living with technology

    Having said this, sometimes, however, I would argue, we need to show up in person and make a difference.

    We can be disappointed if we limit our spaces and relationships to small screens or to “town squares.” We need intimate relationships where we give and receive touch, where we gaze into someone’s eyes. We also need spaces – some will be online – where deep connections can be made, where we can rest, play and discover.

    So, as some of us head over to the Town Square to purchase the latest iPhone or venture online, it would be best to remember the dictum of historian of technology Melvin Kranzberg:

    “Technology is neither good nor bad; nor is it neutral.”

  • Xiaomi will present its new flagship

    Xiaomi will present its new flagship

    Chinese company Xiaomi plans to unveil its new flagship Xiaomi Mi Note 3 at a special event on September 12. CEO of Xiaomi lei Jun has decided to stir interest in the upcoming event. On his page on the social network Weibo, he posted the picture taken by the camera of Mi Note 3.

    See also:  Became known the price of the flagship smartphone Xiaomi Mi6

    The photo was taken at the opening of a new retail store Mi Store in Hong Kong. That the image captured by smartphone Mi Note 3 found a Chinese blogger who has studied the EXIF data of the photo.

    In speed these data were removed, but the source managed to take a screenshot. Image resolution is 12 MP, the lens aperture equal to F/1.8.

  • Emerging Asia leads global smartphone sales growth

    Emerging Asia leads global smartphone sales growth

    Global smartphone demand increased 4% year-on-year during the second quarter to 347 million units, marking the strongest second quarter on record, according to GfK.

    Emerging Asia led the demand growth with a 13% year-on-year increase, followed by Central and Eastern Europe at 11% and Latin America at 10%, the market research company said. Market value grew 9% year-on-year, due to rising average sales price.

    “The record demand for smartphones in the second quarter this year shows that, despite saturation in some markets, the desire to own a smartphone is a worldwide phenomenon,” GfK global director of telecom research Arndt Polifke said.

    “How that manifests itself differs widely by region. Manufacturers are maximizing all their creativity to ensure their latest devices are irresistible – and to increase ASP as a result. Elsewhere, macroeconomic factors and consumer confidence are having an impact, but operators and retailers are employing localized tactics to ensure the smartphone remains the connected device of choice.”

    Yotaro Noguchi, product lead in GfK’s trends and forecasting division, added that “consumers are willing to pay more for their smartphone as they seek a better user experience. Despite the market reaching high penetration levels, GfK forecasts smartphone demand will continue to see year-on-year growth even in 2018, as innovation from smartphone vendors keeps replacement cycles from lengthening.”

    Mainland China: The market plateaus

    In mainland China, smartphone demand plateaued in 2Q17 at 110.1 million units, showing no change year-on-year. This moderation of growth in demand for smartphones was caused primarily by saturation in the market.

    But as in other regions, higher-priced new products are pushing up market value. GfK forecasts smartphone demand in mainland China to total 461 million units in 2017, an increase of 2% year-on-year. The growth in value terms (USD) is expected to be considerably higher, at 11% year-on-year.

    Developed Asia: South Korea drags down the region

    Overall smartphone demand in the region totaled 16.1 million units in 2Q17, down 3% year-on-year. Declining demand in South Korea, which saw impressive growth last year, offset the increased demand in both Japan (up 12% year-on-year) and Australia (up 9% year-on-year). GfK expects the region to experience a slight improvement in demand in the second half of 2017, finishing the full year down 1%. That will equate to 73.1 million units.

    Emerging Asia: Anticipating the strongest regional growth in 2017

    Smartphone demand in the region totaled 56.7 million units, up 13% year-on-year. Bangladesh and Malaysia powered most of this growth. In Bangladesh, smartphone demand grew by a strong 40% year-on-year. Malaysia is maintaining a steady recovery from its 2015 slump, and here demand in 2Q17 grew by 31% year-on-year.

    Smartphone demand in India also remained resilient in 2Q17, having leveled out slightly to 14% year-on-year. GfK expects the recently announced Goods and Services Tax (GST) will have no impact on smartphone demand in the country. GfK forecasts overall smartphone demand in the region will total 234 million units in 2017, an increase of 11% year-on-year. This represents the strongest growth across all regions for the year.

  • Eye recognition set to rival fingerprints for biometrics

    Eye recognition set to rival fingerprints for biometrics

    ABI Research predicts in a new report that fingerprint sensors in smartphones will surge to reach a 95% penetration rate of smartphone shipments by 2022.

    This will prompt new opportunities for biometric technologies, such as eye recognition, to be utilized as part of novel identification and payment applications for both the banking and governmental markets.

    “While enterprise markets aggressively adopt vein recognition technologies in physical access control applications, eye recognition technologies will soon be one of the most secure modalities for consumer electronics authentication and secure mobile payments,” ABI Research industry analyst Dimitrios Pavlakis said.

    With each passing market quarter, biometric technologies are extending their reach in consumer electronics, while OEMs in the Asia-Pacific region are aggressively driving new implementations.

    This will fuel an exponential growth in mobile banking and payment apps as banks and financial organizations prove to be less timid when embracing new biometric implementations. ABI Research finds that OEMs and service providers are now actively targeting the emerging IoT, smart home, and automotive segments as future growth areas for biometrics.

    “Vein recognition workforce management software and access control solutions in the enterprise market depict an impressive 18% five-year growth rate, boosted by market leaders like Fujitsu and Hitachi,” concludes Pavlakis.

    “Innovative startups like HYPR are making strides in improving biometric blockchain capabilities, while wearable pioneers like Nymi are triggering a domino effect with heart rate-empowered payments.”

  • Nearly one in five smartphones shipped are fake

    Nearly one in five smartphones shipped are fake

    Nearly one in five mobile phones and one in four video game consoles shipped internationally are fake, according to a new OECD report.

    Trade in Counterfeit ICT Goods finds that a growing trade in counterfeit IT and communications hardware is impacting consumers, manufacturers and public finances.

    Smartphone batteries, chargers, memory cards, magnetic stripe cards, solid state drives and music players are also increasingly falling prey to counterfeiters.

    On average, 6.5% of global trade in ICT goods is in counterfeit products, according to analysis of 2013 customs data. That is well above the 2.5% of overall traded goods found to be fake in a 2016 report.

    The high value of smartphones and ICT accessories and insatiable demand makes them a lucrative target for counterfeiters, and cautions that the number and range of affected products is growing.

    Counterfeit ICT goods entail health and safety risks, service outages and loss of income for companies and governments. China is the primary source of fake ICT goods, and US manufacturers are the most hit by lost revenue and erosion of brand value. Almost 43% of seized fake ICT goods infringe the IP rights of US firms, followed by 25% for Finnish firms and 12% for Japanese firms.

    Counterfeits are goods that infringe trademarks. In an industry that relies heavily on intellectual property rights, ICT counterfeiting preys on consumers’ trust in established brands and poses risks to their health, safety and privacy. Counterfeit phones can contain more hazardous substances like lead and cadmium, while fake phone chargers can mean fire and electric shock risks. Fake intermediary ICT devices and components, including transistors, printed circuits and radio masts, are also being shipped.

    The report estimates the value of global trade in counterfeit ICT goods at $143 billion as of 2013, based on data from nearly half a million customs seizures around the world over 2011-13. Almost two-thirds of counterfeit ICT goods are shipped by express and postal services, significantly complicating the screening and detection process.

    The ICT sector accounted for 5.5% of total value added in the OECD area in 2013, equivalent to about USD 2.4 trillion. World exports of manufactured ICT goods grew 6% per year from 2001 to 2013 to USD 1.6 trillion, with China exporting almost a third of the total.

  • 3.4b smartphones to be ready for m-payment by year-end

    3.4b smartphones to be ready for m-payment by year-end

    The install base of smartphones compatible with mobile payment platforms Apple Pay, Samsung Pay or Android Pay is on track to reach 3.4 billion by the end of the year, IHS Markit has predicted.

    The company estimates that by the end of 2017, 11% of active smartphones worldwide will be ready for Apple Pay, 61% will be compatible with Android Pay and 3% with Samsung Pay – but this overlaps with the compatibility of Android Pay.

    The total install base of compatible smartphones is meanwhile predicted to grow even further to 5.3 billion by 2021.

    But to date Apple has launched Apple Pay in just 15 international markets, Samsung has rolled out Samsung Pay in 14 and Android Pay is available in 10, leaving a large addressable market untapped.

    “To reach [the large install base of compatible] smartphones, Apple, Samsung and Android must strategically expand mobile payments services and build partnerships with banks and financial institutions,” IHS Markit mobile and telecoms analyst Ruomeng Wang commented.

    “Despite Apple Pay having a 10-month head start on Samsung Pay, Samsung has been catching up with Apple in terms of total available markets,” he noted.

    Use of the payment platforms is also increasing online. IHS Markit said currently 38 payment platforms and 2 million small businesses are supporting Apple Pay on the web, while Android Pay allows users to make payments on the Google Play store as well as multiple mobile web sites in the US.

    “Compared to Apple and Google, Samsung doesn’t have the same level of content, app platforms or web browsers designed to keep customers engaged. In order to tie customers to Samsung’s ecosystem, Samsung must actively expand Samsung Pay’s support for online retail,” Wang said.

  • Myanmar smartphone shipments up to 26% YoY

    Myanmar smartphone shipments up to 26% YoY

    According to the latest International Data Corporation’s (IDC) Asia/Pacific Quarterly Mobile Phone Tracker, a total of 2.5 million smartphones were shipped to Myanmar in 2016Q3, reflecting a 26% (year-on-year) YoY growth, IDC said in a statement on 25 December. This has been the strongest YoY growth seen in Myanmar’s budding smartphone market since 2015Q3. Sequentially, shipments declined 10% from 2.7 million in 2016Q2 as soft retail sales and the typhoon season negatively impacted smartphone buying in the country.

    “Despite years of hypergrowth in Myanmar’s emerging smartphone market, channels are now starting to lament about a looming slowdown as retail sales show signs of softening, causing inventory buildup across the board,” says Jerome Dominguez, Market Analyst for Mobile Devices, IDC Asia/Pacific.

    IDC maintains a positive outlook for Myanmar’s smartphone market in 2017, although growth is expected to be tamer compared to previous years.

    “IDC expects Myanmar’s smartphone market to grow by 9% this 2017 off the back of relatively low smartphone penetration rate and rising disposable income. This is already a lowered forecast to account for the slower consumer market and political instability in some parts of Myanmar,” adds Dominguez.

    Myanmar’s projected growth for smartphones in 2017 still stands higher than the 6% growth expected in the whole ASEAN region for next year.

    Myanmar Smartphone Vendor and Market Highlights, 2016Q3

    Samsung continued to keep its lead, owing it largely to the good reception of its budget-friendly J-series. Huawei came in at 2nd place and while finishing with a flat quarter, its sales and distribution were still going strong across Myanmar. Vivo spiked last quarter, coming in at 3rd place as it further penetrated tier 2 and tier 3 cities. Xiaomi dropped to the 4th spot although its volume remained high and consumer response stayed positive as it continued to offer smartphones perceived as good value for money. OPPO held the 5th place, maintaining its stronghold in the urban sites of Yangon and Mandalay although its overall shipments dropped quarter-on quarter (QoQ) due to inventory build-up.

    As with many developing countries, low-cost smartphones continue to thrive in Myanmar. In 2016Q3, 89% of smartphone shipments to the country fall below US$225. “Smartphones priced at US$50<US$150 still holds the sweet spot among Myanmar consumers. However, handsets in the US$150<US$250 price band are also on a growth track due to the influx of mid-range handsets from Chinese vendor Vivo,” adds Dominguez.

    Despite being a budget market for devices, Myanmar’s feature phone market remains very small, unlike other emerging markets, accounting for only 20% of total mobile phone shipments in 2016Q3. “Channels in Myanmar are not expecting the feature phone market to pick up anytime soon based on the rather progressive device adoption in the country, where most consumers would typically opt for a smartphone as their first mobile phone,” states Dominguez.

    In terms of screen size preference, smartphones in the <4.5“segment are now starting to diminish as Myanmar consumers go for larger screen sizes. 5” <5.5” handsets continue to gain traction, growing 44% YoY. Phablets (5.5” <6.99”) also saw a huge annual growth of 160% last 2016Q3, particularly driven by the rise in the 5.5”<6” segment. Huawei and Vivo lead the 5” <5.5” band while Xiaomi and Samsung reign supreme in the phablet category. “Myanmar’s increasing appetite for bigger screens is driven by the rising popularity of content consumption on social media, particularly on Facebook,” says Dominguez.

    4G LTE has just been recently introduced to Myanmar but as of October 2016, all 3 telcos have already been able to roll out 4G LTE services. Concurrently, 4G-capable devices have also shown a spike in 2016Q3, growing 41% QoQ, with market leaders Samsung, Huawei, and Xiaomi leading the wave. “IDC has raised its 4G smartphone shipment forecast in Myanmar for 2017 to account for the positive uptake of 4G smartphones in the country and vendor direction to focus on this air interface moving forward,” says Dominguez.

  • Global device sales set to stay flat until 2018

    Global device sales set to stay flat until 2018

    Worldwide combined shipments of PCs, tablets, ultramobiles and mobile phones are projected to remain flat in 2017 with 2.3 billion units, according to Gartner.

    There were nearly 7 billion phones, tablets and PCs in use in the world by the end of 2016. However, Gartner does not expect any growth in shipments of traditional devices until 2018, when a small increase in ultramobiles and mobile phone shipments is expected.

    “The global devices market is stagnating,” said Ranjit Atwal, research director at Gartner. “Mobile phone shipments are only growing in emerging Asia-Pacific markets, and the PC market is just reaching the bottom of its decline.”

    Atwal said that aside from declining shipment growth for traditional devices, average selling prices are also beginning to stagnate because of market saturation and a slower rate of innovation.

    “Consumers have fewer reasons to upgrade or buy traditional devices,” he said. “They are seeking fresher experiences and applications in emerging categories such as head mounted displays (HMDs), virtual personal assistant (VPA) speakers and wearables.”

    Gartner sees the PC market benefiting from a replacement cycle toward the end of this forecast period, returning to growth in 2018. Increasingly, attractive premium ultramobile prices and functionality will entice buyers as traditional PC sales continue to decline.

    The mobile phone market will also benefit from replacements. There is, however, a difference in replacement activity between mature and emerging markets.

    “People in emerging markets still see smartphones as their main computing device and replace them more regularly than mature markets,” said Atwal.

    Device vendors are increasingly trying to move into faster-growing emerging device categories.

    “This requires a shift from a hardware-focused approach to a richer value-added service approach,” said Atwal.

    “As service-led approaches become even more crucial, hardware providers will have to partner with service providers, as they lack the expertise to deliver the service offerings themselves.”