Global connected smart devices up 27%
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.
And according to the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Device Tracker, 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.
4Q12 shipments are expected to reach 362.0 million units with a market value of $169.2 billion.
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, the IDC says.
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)
| Vendor | 3Q12 Unit Shipments | 3Q12 Market Share | 3Q11 Unit Shipments | 3Q11 Market Share | 3Q12/3Q11 Growth |
| 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% |
| 3A | 3B | 3C | 3D | 3E | 1E |
Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10, 2012.
Smart Connected Device Market by Product Category, Shipments, Market Share, 2012-1016 (shipments in millions)
| Product Category | 2016 Unit Shipments | 2016 Market Share | 2012 Unit Shipments | 2012 Market Share | 2016/2012 Growth |
| 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, 2012.
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