Smartphone market and technologies

18 de Abril 2013

La Nueva Realidad de las Telecomunicaciones en la Argentina

Smartphone market

Global Internet user – connections in millions

Global Internet user will double over next few years – most will be mobile

Global Mobile Data Traffic by 2016

2012, Global mobile traffic is gr 10% of global Internet traffic.

Global Mobile Data Traffic Forecast by Region

Global Mobile Data Traffic Forecast by Devices

Global mobile phone by device type

• Smartphones are finally

overtaking feature phones

in worldwide sales

• 918.6 million smartphones

(2013), 50% of the

industry's total shipments

• China is expected to have

the largest smartphone

market in 2013, with 301.2

million shipments

Source: IDC 2013 (Q4-2012 )

Global sales forecast by devices from 2012 and 2017

Emerging market smartphone sale

Emerging market smartphone

sales are set to overtake the

developed markets’ sales of

smartphones by 2016

Market Share – Android market

Source: Jumptab, 03/2013

Mobile operators and

advertisers focusing on the

Android market should assume

that more than 50% of their ads

will appear on Samsung

smartphones, unless they

specifically target other devices.

Market share and profitability Q2/2012

Source: IDC, Canaccord Genuity

Profitability of mobile

phone industry (total)

Market share

smartphones

Market share mobile

phones (total)

The characteristics of different smartphones I/III

Average monthly mobile data consumption of smartphone users

<50MB per month 11%

51-100MB per month 16%

101-150MB per month

14% 151-200MB per month

16%

201-300MB per month

22%

301-400MB per month

5%

400MB+ per month 17%

Source: Informa Telecoms & Media

N=106

59.2% of operators see that the average smartphone usage is less than 200MB per month.

The characteristics of different smart phones Volume of traffic on your network of smart phone users

Video calling 0%

Video, including streaming

and downloads

36%

Peer-to-peer file-sharing

1%

Web browsing

26%

Social networking

services 37%

Source: Informa Telecoms & Media

N=106

Social networking and video

download and streaming drive the

greatest volume of traffic on your

network

The characteristics of different smart phones Mobile data consumption of smartphone platforms

iOS 43%

Android 27%

Symbian 6%

BlackBerry 15%

Windows Phone

7%

Other 3%

Source: Informa Telecoms & Media

N=106

Apple smartphone user

consuming 43% of mobile data

and Android user 27% on

networks in terms of average MB

per smartphone per month?

OS and Apps: content is driver of mobile data

•OS used by these users affected application use

•YouTube most popular media service

Users aged 18 to 34 used more

applications than older age groups.

Source: n= 1,138, Analysys Manson 2012

Mobile share of online video

LTE accessability:

• 4G subscribers in the U.S. are 33% more

likely to watch a video on their

smartphones than the average mobile

user.

Data volume:

• Mobile video already accounted for more

than 50% of global mobile data traffic for

the first time in 2011

Mobile OS market

Source: IDC (Dec 2012)

Global smart phone operating system share in 2012 and 2016

(millions of units),

Smart phone operating system market share

22 © Nokia Siemens Networks

iOS 7%

Android 14%

Symbian 29%

BlackBerry 13%

Windows Mobile/

Windows Phone 16%

Other 21%

iOS devices (iPhone and iPad) have the lowest churn and Symbian devices the highest – suggesting that end users either blame or reward the operator for the quality of their experience of a device.

Smartphone churn rate via OS

Android Is Winning, But Android Phone Makers Aren't

Big handset makers who don't want to be just another Android provider are going to start introducing their own flavors of Android for their phones. This is the risk of being open -- Google can lose control of its platform.

Good news for Google is that its partners don't really have much choice. They can't get access to iOS. And Microsoft is as deeply in bed with Nokia as Google is about to be with Motorola.

Android is suddenly in trouble

Clear developers message: Build on iOS first, Android second

Verizon CFO Fran Shammo says the company plans on putting its weight behind Windows Phones. AT&T is reportedly spending $150 million to market Windows Phones.

Applications

Global: Top10 Android Apps 2012 Global: Top10 iPhone Apps 2012

Source: Nielsen, Data from January – October 2012

Top Apps on smart phones by usage

Global mobile traffic 2012

2%

69%

29%

Source: Informa Telecoms and Media 2012

1%

65%

34%

Global mobile traffic 2016

Source: Informa Telecoms and Media 2012

Service market share

8%

61%

9%

56%

3%

6%

11%

4%

5%

4%

6%

15%

4%

5% Messaging Messaging

VAS* VAS*

*VAS = Value Added Services

Internet Internet

Social

Games

Music

Video/TV

Apps

Portable Internet

Mobile browsing

Social

Games

Music

Video/TV

Apps

Mobile browsing

Portable Internet

Mobile Internet alone will account for over

69% of total data traffic Data traffic from mobile Internet, apps and

mobile TV/video will see massive growth

Global: Top10 mobile content services, by data traffic, 2011 / 2016

Video streaming service on smart phones

Source: Informa Telecoms and Media 2012

Global mobile video

streaming traffic to

soar to 5.75 billion

gigabytes in 2016

(+5000% compared

to 2011).

Most VoD services

are now primarily

focused on

streaming (~85%).

YouTube dominates

but e-commerce,

news, sports, movie

trailers catching up. *mobile data traffic excludes portable Internet (dongles, modems)

Developer project starts – iOS vs. Android

63%

73%

75% 73%

27% 25%

27%

37%

Android iOS

1Q11 2Q11 3Q11 4Q11

Total new project starts (thousands)

16

12

8

4

Developers don't want to develop on a fragmented platform. The uptake of Android 4.0 has been poor

Growth of applications stores

• Apple App Store increased by 200%

between 4Q09 and 2Q11, to reach a

total of 421,000 apps.

• Androids Google play Market increased

by around 1,100% between 4Q09 and

2Q11, to reach a total of 215,000 apps.

• BlackBerry App World increased by

around 800% between 4Q09 and 2Q11,

to reach a total of 36,000 apps.

Google Play Store vs Apple App Store

Dec 2011: Google announced that the Android Market had passed its 10 billionth app download. Apple hit that mark in July 2011

Dec 2011

Mobile monetizing

Source: Gartner, CAGR Compound Annual Growth Rate, Q4/11

Mobile monetizing

growing rapidly to $ 12B

with 71% in Apps and

29% Ads

Tablet market

The gap between iOS and Android shrank, largely due to the Amazon Kindle Fire

Source: Online Publisher’s Association