Business News Holding

Tag: canalys

  • What Do Consumers Do With Their Phones?

    A recent Canalys consumer study, which surveyed over 3.000 people across France, Germany and theUK, looked at what features consumers are using on their phones.

    The first conclusion is that the use of data services is limited outside of smart phone owners and that customers on SIM-only contracts consume more data than their pre-paid counterparts. “The results go some way to quashing the expectations that SIMonly customers will only use voice and text,” says Canalys.

    When comparing the usage habits of respondents with pre-paid contracts versus those with SIM-only contracts, usage was higher in every category for individuals with SIM-only packages.

    For example, 27% of SIM-only users regularly browsed web sites on their handsets compared with just 14% of pre-paid users. Equally, the number of customers accessing social networking services on their mobile phones was considerably higher among SIM-only users (16%) when compared with pre-paid users (7%). The use of e-mail was also greater among those who subscribed to SIM-only deals (23%) versus consumers on pre-paid tariffs (16%).

    According to Canalys, operators will hope that the uptake of data services will steadily increase across their subscriber bases. “The major challenge that operators face is ensuring there is a sufficient penetration of handsets that are capable of accessing connected services, a questionable factor, especially looking at the difference in usage between handset brands across data services,” the report says.

    The other conclusion is that social networking on mobile phones remains a relatively small, but growing service. The research shows that despite the large usage figures quoted by companies such as Facebook, usage of social networking in the mass market remains limited.

    Only 10% of end users regularly accessed this type of service from their mobile phones. iPhone users were by far the most active, with almost half regularly accessing social networking services. Figures for BlackBerry (27%) and HTC (23%) users were lower than those for Apple, but were still significantly above the average.

    “These results show that usage of social networking services is higher among smart phone users, and as the market leader in the smart phone market, it is fair to assume that usage on Nokia’s flagship products would be similar. Usage of social networking services across all of its products, however, was only 7%,” says Canalys.

    When looking at e-mail usage on mobile phones, BlackBerry owners were the most active with 68% regularly using e-mail on their handsets. Owners of handsets from Apple (67%) and HTC (53%) also used e-mail far more regularly than those who owned handsets from the leading vendors, where on average only 15% of end users were regularly using e-mail on their phones.

    Web site browsing also revealed contrasting usage patterns: 73% of iPhone users regularly browsed web sites on their handsets; 60% of BlackBerry owners and 56% of HTC owners had similar habits.

    Conversely, just 8% of Motorola owners regularly browsed web sites on their phones and, though web browsing was higher on phones from LG (18%), Samsung (17%), Nokia (16%) and Sony Ericsson (16%), it was still significantly below that of iPhone users.

    Navigation services were cited by 36% of end users as a feature that they wanted on their next mobile phone that they did not have today. The majority of respondents were keen to have an in-car turn-by-turn solution on their next phone.

    “But as many navigation solution providers are now discovering, it is not good enough just to supply the software. For in-car navigation to be successful on mobile phones the experience of portable navigation devices (PNDs) needs to be matched or exceeded. This means that car kits or cradles need to be supplied alongside the software at the time of purchase. In addition, events such as incoming calls and other alerts need to be handled in a way that provides minimal disruption to the navigation experience,” analysts conclude.

  • Canalys Special Report “Smart phone market trends 2009/2010”

    ADVERTORIAL. The mobile industry is pinning its hopes on smart phones as the driver of growth in difficult times. Overall mobile phone shipments are falling, but smart phones are growing and taking an increasing share of the market.

    Companies such as Apple and RIM are seeing increases in demand for their devices, challenging the likes of Nokia, and leading a fundamental shift toward new device form factors and use of mobile applications by consumers and businesses.

    Network operators are struggling to establish the best strategy to open up new revenue streams, while having to manage complex partnerships with strong hardware vendors, as well as other companies that have entered their world with mobile service revenue aspirations of their own, such as Google and Microsoft.

    The Canalys “Smart phone market trends 2009/2010” report pulls together, in a concise format, qualitative analysis of key market trends, top-level market share and shipment estimates for the leading vendors, comparative analysis of vendors’ performance and evaluation of their strengths and weaknesses, and forecasts for future market development.

    “Smart phone market trends 2009/2010” report gives the precise and exhaustive answers to the following questions:

    • Who are the leading smart phone vendors in each region?
    • What impact will application stores have on operators and vendors?
    • How are the different mobile operating systems evolving and why?
    • Which operators have the best smart phone strategies?
    • How will the different regions grow over the next five years?
    • What are the biggest threats to today’s leading smart phone vendors?
    • How can mobile companies make the most of growth in China?
    • What are the implications of a more software-centric mobile ecosystem?
    • What are the key trends in user interfaces and form factors?
    • Where are the key competitive arenas for Google, Apple, RIM, Microsoft, Nokia et al?

    The full report, published in August 2009, is 70 pages and includes supporting definitions and explanation of the research methodologies used, and is only available direct from Canalys – the acknowledged leading market analyst firm in this area.

    Click here to find out more

  • Q2: Nokia Retains Lead but Apple and RIM Are Rising Fast

    “Smart phones continue to shine as one of the brightest spots of the technology industry, with shipments growing despite the global recession,” says the recent Canalys’ report on the Q2 key smartphone market trends.

    “Innovation in interfaces, design, applications and promotion continue to excite consumers, which, in contrast to the PC industry, is helping to keep average selling prices stable. The rise in data traffic seen by mobile network operators is finally generating a return on their investment in broadband capacity and will drive further infrastructure expenditure,” the autors predict.

    According to the report, Apple has established industry leadership in terms of industrial design, ease of use and application availability, offering one of the most desirable devices on the market and setting a standard that rivals are striving to emulate. It reinforced its position during the quarter by launching the iPhone 3GS.

    Pete Cunningham, Canalys senior analyst, said, “Apple has revolutionised the smart phone sector, leapfrogging more experienced rivals. The competition must move much faster to close the gap in terms of functionality and design and at the same time try to target Apple’s weak spots. These are primarily related to its business model, which requires premium upfront pricing, high cost of ownership and, in many countries, a restricted operator line-up.”

    The research shows that the competition is building in a number of different forms. RIM has successfully expanded its product portfolio to include a wide selection of devices and interfaces that appeal to a range of customers at different price points. This includes 2.5G models that are smaller, lighter, lower cost and have better battery life than most of its 3G rivals. Palm has received widespread acclaim following the launch of the Pre in the US during Q2.

    Chris Jones, Canalys VP and principal analyst, added, “As a relatively small company, Palm has shown what creative leadership and focused investment can achieve. By going back to its roots and developing its own operating system, it has produced an innovative and differentiated product. Investors have responded to this, with its share price growing over 70% this year. Palm still has plenty of challenges ahead – it must find the resources to launch the Pre on the global stage, while continuing to fund development of its product pipeline.”

    Another emerging trend is the rise of the Google-led Android OS, which is already taking 3% of the smart phone market. Success so far has been driven through HTC, but with many other vendors, including Samsung, joining the fray, volumes are expected to increase substantially. The free licence model, tight integration with Google applications and the potential for a high degree of vendor and operator customisation are all benefits attracting industry participants.

    Jones continued, “It is noteworthy how differently the smart phone business is developing compared to the PC industry. PCs are a highly standardised, commoditised platform, where one model is often largely indistinguishable from another. Consequently, PC price points are incredibly low, which is good for customers, but the industry lacks excitement. Smart phones are different – Nokia, Apple, RIM and Palm have all achieved success by developing their own operating systems and delivering distinct devices and interfaces. Android customisation will further add to this diverse mix. As a result, new smart phones are front page news around the world."

    “The main loser has been Microsoft’s highly standardised Windows Mobile platform. Its smart phone market share has now fallen below 10% and the trend is likely to continue as many of its OEM partners, including HTC, Motorola and Palm, are focusing investment on other platforms,” he conclude.

    In addition to smart phones, netbooks are the other hot area within the technology industry in this difficult year. The competition and opportunities created between these platforms will be discussed at the Canalys Mobility Forum, taking place on November 17, near London’s Heathrow Airport.