Day: February 23, 2010

“The Marketplace update that Microsoft announced just a few days ago has been released today. Just launch the Marketplace app on your phone and you will recive the updated version. If this doesn’t work you can also uninstall the current version that is you your handset and download the newer one at mp.windowsphone.com.
Here are the new updated feature included in this version:

World View: previously known as “geo selector”, the World View feature will allow Marketplace users to browse and purchase applications from different geographic catalogs. For example, a user in France could choose to browse the English US catalog, or a user in Canada could browse the catalog from Japan. All application prices will show up in the user’s local currency and Microsoft will be in touch with registered independent software vendors (ISVs) in the weeks ahead to provide step-by-step instructions on how to re-price their apps for all markets.
Installation onto storage cards: a highly requested feature by end users, it will allow users to install applications downloaded from Marketplace onto storage card memory. This will solve a common pain point today where the main memory of the phone runs out after installing a few apps from Marketplace.
Free app submissions to additional markets: ISVs will no longer have to pay a $10 fee for submitting applications to additional markets. With this change Microsoft is simplifying its fee structure and providing more opportunities for ISVs to submit their applications to smaller markets. Once an application has been certified for a primary market ($99 submission fee applies) ISVs can submit for free that same application to other catalogs, as long as they meet the current Market Validation guidelines.
Improved ISV registration flow: The ISV registration flow in the developer portal will be simplified, with different registration paths optimized for the type of ISV (company, individual, student) and additional guidance for completing the application submission process will be provided.
Deep linking: Microsoft is releasing deep linking capabilities for ISVs to allow users to purchase their apps from Marketplace. On the web, ISVs will be able to construct a URL to link directly to the purchase page of their applications in the Marketplace Web site, and will have access to the “Get it Now for Windows phone” logo, which standardizes the way ISVs link to Marketplace. On the device, ISVs will be able to call Marketplace from within their applications and open the purchase page for a specific app, allowing them to offer additional titles or provide free users the option to purchase premium version of an application.
Expansion to Russia: users in Russia will be able to access and purchase apps via credit card from a local catalog of applications, as well as purchase from other catalogs through the World View feature. ISVs from Russia will also be able to register with Marketplace and submit their creations to any supported Marketplace country.
Applications policy changes: Changes are being made to Microsoft’s existing application acceptance policies to allow VoIP applications that use the carrier network unless explicitly prohibited by a mobile operator. Mobile Operators who sign a Marketplace deal with Microsoft will be able to dictate if they allow or prohibit the use of VoIP apps in their networks.

Worldwide mobile phone sales to end users totalled 1.211 billion units in 2009, a 0.9 per cent decline from 2008, according to Gartner, Inc. In the fourth quarter of 2009, the market registered a single-digit growth as mobile phone sales to end users surpassed 340 million units, an 8.3 per cent increase from the fourth quarter of 2008.

“The mobile devices market finished on a very positive note, driven by growth in smartphones and low-end devices,” said Carolina Milanesi, research director at Gartner. ”Smartphone sales to end users continued their strong growth in the fourth quarter of 2009, totalling 53.8 million units, up 41.1 per cent from the same period in 2008. In 2009, smartphone sales reached 172.4 million units, a 23.8 per cent increase from 2008. In 2009, smartphone-focused vendors like Apple and Research In Motion (RIM) successfully captured market share from other larger device producers, controlling 14.4 and 19.9 per cent of the worldwide smartphone market, respectively.”

Throughout 2009, intense price competition put pressure on average selling prices (ASPs). The major handset producers had to respond more aggressively in markets such as China and India to compete with white-box producers, while in mature markets they competed hard with each other for market share. Gartner expects the better economic environment and the changing mix of sales to stabilise ASPs in 2010.

Three of the top five mobile phone vendors experienced a decline in sales in 2009 (see Table 1). The top five vendors continued to lose market share to Apple and other vendors, with their combined share dropping from 79.7 in 2008 to 75.3 per cent in 2009.

Table 1
Worldwide Mobile Terminal Sales to End Users in 2009 (Thousands of Units)

Company

2009 Sales

2009
Market
Share (%)

2008 Sales

2008
Market
Share (%)

Nokia

440,881.6

36.4

472,314.9

38.6

Samsung

235,772.0

19.5

199,324.3

16.3

LG

122,055.3

10.1

102,789.1

8.4

Motorola

58,475.2

4.8

106,522.4

8.7

Sony Ericsson

54,873.4

4.5

93,106.1

7.6

Others

299,179.2

24.7

248,196.1

20.3

Total

1,211,236.6

100.0

1,222,252.9

100.0

Note* This table includes iDEN shipments, but excludes ODM to OEM shipments.
Source: Gartner (February 2010)

In 2009, Nokia’s annual mobile phone sales to end users reached 441 million units, a 2.2 per cent drop in market share from 2008. Although Nokia outperformed industry expectations in sales and revenue in the fourth quarter of 2009, its declining smartphone ASP showed that it continues to face challenges from other smartphone vendors. “Nokia will face a tough first half of 2010 as improvement to Symbian and new products based on the Meego platform will not reach the market well before the second half of 2010,” said Ms Milanesi. “Its very strong mid-tier portfolio will help it hold market share, but its ongoing weakness at the high end of the portfolio will hurt its share of market value.”

Samsung was the clear winner among the top five with market share growing by 3.2 percentage points from 2008. This achievement came as a result of improved channel relationships with distributors to extend its reach and better address the needs of individual markets as well as a rich mid-tier portfolio. For 2010, the company is putting a focus on Bada, its new operating system (OS) that aims at adding the value of an ecosystem to its successful hardware lineup.

Motorola sold slightly more than half of its 2008 sales and exhibited the sharpest drop in market share, accounting for 4.8 per cent market share in 2009. “Its refocus away from the low-end market limited the volume opportunity, but should help it drive margins going forward. Motorola’s hardest barrier is to grow brand awareness outside the North American market, where it benefits from a long-lasting relationship with key communications service providers (CSPs).

In the smartphone OS market, Symbian continued its lead, but its share dropped 5.4 percentage points in 2009 (see Table 2). Competitive pressure from its competitors, such as RIM and Apple, and the continued weakness of Nokia’s high-end device sales have negatively impacted Symbian’s share.

At Mobile World Congress 2010, Symbian Foundation announced its first release since Symbian became fully open source. Symbian^3 should be made available by the end of the first quarter of 2010 and may reach the first devices by the third quarter of 2010, while Symbian^4 should be released by the end of 2010.

“Symbian had become uncompetitive in recent years, but its market share, particularly on Nokia devices, is still strong. If Symbian can use this momentum, it could return to positive growth,” said Roberta Cozza, principal research analyst at Gartner.

Table 2
Worldwide Smartphone Sales to End Users by Operating System in 2009 (Thousands of Units)

Company

2009 Units

2009
Market
Share (%)

2008 Units

2008
Market
Share (%)

Symbian

80,878.6

46.9

72,933.5

52.4

Research In Motion

34,346.6

19.9

23,149.0

16.6

iPhone OS

24,889.8

14.4

11,417.5

8.2

Microsoft Windows Mobile

15,027.6

8.7

16,498.1

11.8

Linux

8,126.5

4.7

10,622.4

7.6

Android

6,798.4

3.9

640.5

0.5

WebOS

1,193.2

0.7

NA

NA

Other OSs

1,112.4

0.6

4,026.9

2.9

Total

172,373.1

100.0

139,287.9

100.0

Source: Gartner (February 2010)

The two best performers in 2009 were Android and Apple. Android increased its market share by 3.5 percentage points in 2009, while Apple’s share grew by 6.2 percentage points from 2008, which helped it move to the No. 3 position and displace Microsoft Windows Mobile.

“Android’s success experienced in the fourth quarter of 2009 should continue into 2010 as more manufacturers launch Android products, but some CSPs and manufacturers have expressed growing concern about Google’s intentions in the mobile market,” Ms Cozza said. “If such concerns cause manufacturers to change their product strategies or CSPs to change which devices they stock, this might hinder Android’s growth in 2010.”

“Looking back at the announcements during Mobile World Congress 2010, we can expect 2010 to retain a strong focus around operating systems, services and applications while hardware takes a back seat,” said Ms Milanesi. “Sales will return to low-double-digit growth, but competition will continue to put a strain on vendors’ margins.”