Nokia and Windows global momentum continues

Local brands edge out global players in China

The latest smartphone sales data from Kantar Worldpanel ComTech, for the three months to September 2013, shows Windows Phone now makes up one in 10 smartphone sales across the five major European markets*, has overtaken iOS in Italy, and is gaining momentum in emerging markets. Android remains the dominant operating system across Europe with 71.9%, an increase of 4.2 percentage points compared with the same period last year.

Windows Phone, driven almost entirely by Nokia sales, continues to make rapid progress in Europe and has also shown signs of growth in emerging markets such as Latin America.

Dominic Sunnebo, strategic insight director at Kantar Worldpanel ComTech, comments: “With the smartphone market in developed countries so congested, it is emerging economies that now present manufacturers with the best opportunity for growth.

“Nokia dominated in Latin America for many years, and while its popularity declined with the fortunes of Symbian it now has an opportunity to regain the top-spot. The majority of consumers in Latin America still own a Nokia featurephone and upgrading to an entry level Lumia is a logical next step. Price is the main barrier in developing markets and the budget Lumia 520 opens the door to smartphone ownership for many.”

In Britain, Windows accounts for 11.4% of the market. Android is still the number one operating system with 58.4% while BlackBerry now only has 3.1%. Apple’s iOS has dipped by 1.0 percentage point to 27.0%, although it is expected to strengthen at Christmas.

Sunnebo explains: “August is traditionally a quiet month for Apple as consumers wait for the release of new models, and strong sales of the iPhone 5S and 5C at the end of September did not manage to make up for the lull. The full impact of the new iPhones will be seen at Christmas when iOS is expected to bounce back strongly in Britain, the US and Australia.”

Local brands growing in China

China is increasingly dominated by Android which accounts for 81.1% of the market, up 14.6 percentage points from last year. Domestic manufacturers made up 44% of smartphone sales in the latest period, compared to just 30% the previous year. Huawei, Xiaomi, Lenovo and Coolpad handsets are particularly popular outside of China’s largest cities and represent a more value-for-money option than global brands.

Sunnebo comments: “Chinese consumers are prepared to make a huge investment in their smartphone, with some spending up to 70% of their monthly salary on a new device. With such a high investment, Chinese consumers want to get the best value for money and are increasingly opting for a high-spec local brand over a low-spec global equivalent. The message for global manufacturers is clear – Chinese consumers demand value, and overpriced entry-levels models no longer cut it against increasingly impressive local competition.”

Kantar Worldpanel ComTech: Urban China Smartphone Sales Data to Q313

Smartphone % penetration in Great Britain stands at 68% in September, with 87% of devices sold in the past three months being smartphones.

*The big five European markets includes UK, Germany, France, Italy and Spain.

Click on the right to download additional data.