Global mobile revenue to hit $1.5 trillion in 2012

The mobile market is set to rake in approximately US$1.5 trillion this year, accounting for as much as 2% of the global GDP, according to the Global Mobile Market Update published by consulting and strategy firm, Chetan Sharma.

Accounting for the significant figure, the firm cites booming data revenues; a massive uptake of smarphones, which now account for 70% of devices sold; and mobile services which cater for billions of subscribers across the globe – figures which have grown exponentially over the years.

“By the end of 2011, the global subscriptions exceeded 6 billion. The first 1 billion took over 20 years and this last one took only 15 months,” the firm said.

“The primary growth drivers are India and China which are cumulatively adding 75 million new [subscribers] every quarter. China became the first country to eclipse the 1 billion mark in March 2012. India is likely to arrive at the milestone by early 2013.”

“Smartphones are driving tremendous growth around the globe,” the firm continued, stating further that mobile devices are now exceeding traditional computers in unit sales and revenue.

Samsung takes the sales lead

According to data released from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, Samsung has dethroned previous leader, Nokia, as the largest mobile phone vendor in the world.

While overall device sales have declined 1,5% when comparing Q1 2012 with the same period in 2011, Samsung has seen a 267% increase in year-on-year unit sales for the quarter, from 11.5 million in 2011, to 42.2 million in 2012.

Following behind Samsung, Apple shifted 88,7% more devices, shipping 25.1 million units in 2012, compared to 18.6 million, previously.

Global smartphone shipments Q1 2011 / Q1 2012

Global mobile phone shipments Q1 2011 / Q1 2012

“The race between Apple and Samsung remained tight during the quarter, even as both companies posted growth in key areas,” said Ramon Llamas, senior research analyst with the IDC.

Losing ground, Nokia, RIM and HTC all saw a decrease in the number of units shipped, while Nokia saw its market share crash from 23,8% in 2011, to 8,2% in 2012.

“Nokia and RIM are under severe market scrutiny as investors and developers leave in droves. Lack of product planning and execution has left their market share in disarray,” said Chetan Sharma.

The state of the global mobile market

In its report, Chetan Sharma provided the following snapshot the global mobile market:

• Total Global Mobile Revenues to hit $1.5 Trillion in 2012, over 2% of Global GDP
• Top 10 operators control 42% of the global data mobile revenues
• Mobile Services Revenue exceeded $1 Trillion for the first time in 2011
• The number of mobile operators with more than $1 Billion in yearly data revenues will touch 50 in 2012
• Total Global Mobile Data Revenues went past $300 Billion in 2011
• Non-messaging data now owns 53% of the global mobile data revenues
• Mobile Operator Profits have more than doubled over the last 10 years. However, the wealth is not divided evenly. Asia’s share has tripled at the expense of Europe whose profit share has declined by 50%
• Total Global Subscriptions to exceed 7 Billion in early 2013
• Mobile Devices are now exceeding traditional computers in unit sales and revenue
• 70% of the device sales in the US are now smartphones. Samsung and Apple now account for 50% of the smartphone unit share and 90% of the profit share.