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Korea, the Global Smartphone Giant · million in 2013. Korean companies are lead-ing the global LTE...
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T he smartphone revolution, trig- gered in 2007 by the launch of the iPhone, is rapidly shifting the focus of the global mobile phone market from feature phones to smartphones. Smartphone ship- ments in 2013 increased to 930 million units, rising 33.1 percent compared to the previous year. This is the first time that smartphone shipments have exceeded that of feature phones. The share of smartphones in the entire mobile phone market is expected to rise 11.5 percentage points from 44.3 percent in 2012, reaching 55.8 percent in 2013 and illustrating the accelerating spread of smartphones world- wide. The Korean mobile phone industry is being rapidly realigned due to the rise of smart- phones. Smartphone shipments accounted for only 1.0 percent of all mobile phone ship- ments in 2007 but soared to 52.9 percent in 2012. Shipments and sales revenues of smart- phones recorded particularly remarkable growth over the past three years. Between 2010 and 2012, sales revenues rose nine-fold from USD 8.2 billion to USD 72.9 billion, and shipments jumped by 8.2 times, from 30 mil- lion units to 247 million. Smartphone sales grew both in advanced markets that focus on high-end models and emerging markets with low-end ones. The share of Korean smartphone companies in advanced markets rose by 24.0 percentage points from 11.1 percent in 2010 to reach 35.1 percent in 2012. The share in emerging mar- kets also increased by 24.6 percentage points from 10.1 percent, reaching 34.6 percent dur- ing the same period. The competitiveness of Korea's smartphone industry has been strengthened steadily for the last three years. As a result, the global market share ranked sixth at 4.2 percent in 2008, fourth at 10.0 percent in 2010 and first at 24.0 percent in 2011. In 2012, it grew further — to 35.3 percent — becoming a leader of the glob- al smartphone industry. Korean companies have unrivaled advan- tages in technology, production capacity, global distribution channels, brand awareness, marketing strategies and the vertical integra- tion of core components (application proces- sors, memory semiconductors, display panels, batteries, camera modules, etc). Based on these advantages, they have secured a strong presence in the smartphone industry in a rela- tively short period of time. There are two key concepts this year in the smartphone industry. The first is the explo- sive growth of long term evolution (LTE) smartphones. The sales volume of LTE smart- phones is expected to record up to 194 percent growth from 92 million units in 2012 to 270 million in 2013. Korean companies are lead- ing the global LTE smartphone market, with a market share of 45.4 percent in 2012. They plan to accelerate the market release of new flagship models targeting advanced markets, as those countries are expected to account for 68 percent of all LTE smartphone sales. The second key concept is the increasing impact of emerging economies including China on the global smartphone market. The smartphone sales volume in emerging coun- tries is expected to increase 44.7 percent com- pared to the previous year to 610 million units, exceeding that of advanced economies (15.7 percent, 320 million units). As the share of emerging nations in the global smartphone market rises by 5.3 percentage points from 60 May 2013 The Market 06 Korea, the Global Smartphone Giant As the rise in smartphones realigns Korea's mobile phone industry, Korean smartphone manufacturers are expected to continue performing well globally [Smartphone Sales] [Smartphone Shipments] Source: SA Revenues and Shipments of Korean Smartphone Companies Source: SA Global Market Share of Korean Smartphone Companies (as measured by shipments) Galaxy S3 www.samsung.com
Transcript of Korea, the Global Smartphone Giant · million in 2013. Korean companies are lead-ing the global LTE...
The smartphone revolution, trig-gered in 2007 by the launch ofthe iPhone, is rapidly shiftingthe focus of the global mobilephone market from feature
phones to smartphones. Smartphone ship-ments in 2013 increased to 930 million units,rising 33.1 percent compared to the previousyear. This is the first time that smartphoneshipments have exceeded that of featurephones. The share of smartphones in the entiremobile phone market is expected to rise 11.5percentage points from 44.3 percent in 2012,reaching 55.8 percent in 2013 and illustratingthe accelerating spread of smartphones world-wide.
The Korean mobile phone industry is beingrapidly realigned due to the rise of smart-phones. Smartphone shipments accounted foronly 1.0 percent of all mobile phone ship-ments in 2007 but soared to 52.9 percent in2012. Shipments and sales revenues of smart-phones recorded particularly remarkablegrowth over the past three years. Between2010 and 2012, sales revenues rose nine-foldfrom USD 8.2 billion to USD 72.9 billion, andshipments jumped by 8.2 times, from 30 mil-lion units to 247 million.
Smartphone sales grew both in advancedmarkets that focus on high-end models andemerging markets with low-end ones. Theshare of Korean smartphone companies inadvanced markets rose by 24.0 percentagepoints from 11.1 percent in 2010 to reach 35.1percent in 2012. The share in emerging mar-kets also increased by 24.6 percentage pointsfrom 10.1 percent, reaching 34.6 percent dur-ing the same period.
The competitiveness of Korea's smartphoneindustry has been strengthened steadily for thelast three years. As a result, the global marketshare ranked sixth at 4.2 percent in 2008,fourth at 10.0 percent in 2010 and first at 24.0percent in 2011. In 2012, it grew further — to35.3 percent — becoming a leader of the glob-al smartphone industry.
Korean companies have unrivaled advan-tages in technology, production capacity,global distribution channels, brand awareness,marketing strategies and the vertical integra-tion of core components (application proces-sors, memory semiconductors, display panels,batteries, camera modules, etc). Based onthese advantages, they have secured a strongpresence in the smartphone industry in a rela-tively short period of time.
There are two key concepts this year in thesmartphone industry. The first is the explo-sive growth of long term evolution (LTE)smartphones. The sales volume of LTE smart-phones is expected to record up to 194 percentgrowth from 92 million units in 2012 to 270million in 2013. Korean companies are lead-ing the global LTE smartphone market, with amarket share of 45.4 percent in 2012. Theyplan to accelerate the market release of newflagship models targeting advanced markets,as those countries are expected to account for68 percent of all LTE smartphone sales.
The second key concept is the increasingimpact of emerging economies includingChina on the global smartphone market. Thesmartphone sales volume in emerging coun-tries is expected to increase 44.7 percent com-pared to the previous year to 610 million units,exceeding that of advanced economies (15.7percent, 320 million units). As the share ofemerging nations in the global smartphonemarket rises by 5.3 percentage points from 60
May 2013
The Market06
Korea, the Global Smartphone GiantAs the rise in smartphones realigns Korea's mobile phone industry, Korean smartphonemanufacturers are expected to continue performing well globally
[Smartphone Sales] [Smartphone Shipments]Source: SA
Revenues and Shipments of Korean Smartphone Companies
Source: SA
Global Market Share of Korean SmartphoneCompanies (as measured by shipments)
Galaxy S3
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May 2013
percent in 2012 to 65.3 percent in 2013, com-petition between manufacturers to dominatethese markets is expected to become fiercer.The rise of emerging economies will helpexpand the global influence of Korean compa-nies based on their price competitiveness,products tailored to meet various demands andstrong brand awareness.
Korean players are expected to continuous-ly boast strong performance on the globalstage. Major Korean smartphone manufacturerSamsung Electronics has recorded a series ofhits with its flagship models, including theGalaxy S (June 2010), Galaxy S2, Galaxy S3,Galaxy Note and Galaxy Note2. With the suc-cess of these high-end models, SamsungElectronics has ranked No.1 in the global mar-ket, outcompeting rivals such as Nokia andApple. The company plans to release 350 mil-lion units of smartphones around the worldthis year, which is 65 percent more than lastyear. The Galaxy S4, introduced in New Yorkon March 14, is included in the newly releasedmodels. LG Electronics is also expected toestablish a lineup of smartphones rangingfrom high-end products (Optimus G, Optimus
G Pro) to low-end models (Nexus 4, L/FSeries). LG smartphone shipments are predict-ed to record 40 to 50 million units this year,and it is highly possible that LG will becomethe No. 3 manufacturer in the global market.
So far, the world-class hardware capabilityof Korean companies has strengthened com-petitiveness in both quality and price, and thecompanies will continue to come up with dif-ferentiated products in the global marketthrough innovation in UI (user interface) andUX (user experience). Given this strong com-petitiveness, it seems the companies will meettheir sales goals this year without trouble andthat Korea will solidify its presence as a globalsmartphone leader.
By Hae Shik, JungDeputy Director
IT Industry Analysis TeamNational IT Industry Promotion Agency (NIPA)
[Advanced Markets] [Emerging Markets]Source: Gartner
Shipments and Market Share of Korean Companies in Advanced / Emerging Markets
Prospects of Smartphones in Advanced /Emerging Markets
Smartphone Prospects /LTE Smartphone Market
Source: SA
Shipments of LTE Smartphones Smartphones in Emerging Markets
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SO FAR,THE WORLD-CLASS
HARDWARE CAPABILITY OF
KOREAN COMPANIES HAS
STRENGTHENED COMPETI-
TIVENESS IN BOTH QUALI-
TY AND PRICE, AND THE
COMPANIES WILL CONTIN-
UE TO COME UP WITH DIF-
FERENTIATED PRODUCTS
IN THE GLOBAL MARKET
THROUGH INNOVATION IN
UI (USER INTERFACE) AND
UX (USER EXPERIENCE).
Galaxy Note2
Optimus G Pro
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