Almost 40% of EMEA smart phones have GPS — MobileMonday Global: Industry News

^{Competition gains on Nokia} Almost 40% of EMEA smart phones have GPS

23 Aug 2008 at 06:03 GMT Timo Poropudas

Growth slowed in the smart phone market in EMEA in Q2, but total shipments of 12.6 million still made it the second biggest quarter ever in volume terms, says the new report from Canalys.

The market research company estimates that smart phones represented 13 percent of all mobile phone shipments. Nokia remained the market leader by wide margin, but the other vendors in the top five posted much higher than average year-on-year growth, with second-placed RIM closing the market share gap by several points, and HTC, Motorola and Samsung more than doubling their shipments.

EMEA smart phone market Q2 2008
Vendor	Q208 Shipments	Q208 Share	Q2 2007 Shipments	Q207 Share	Growth, %
Nokia	8,950,820	71.20 %	7,811,120	79.70 %	14.6
RIM	900,950	7.20 %	546,570	5.60 %	64.8
HTC	881,200	7.00 %	402,950	4.10 %	118.7
Motorola	433,040	3.40 %	134,580	1.40 %	221.8
Samsung	401,990	3.20 %	121,090	1.20 %	232.0
Others	1,000,430	8.00 %	790,470	8.10 %	26.6
Total	12,568,430	100.00 %	9,806,780	100.00 %	28.2

Source: Canalys

Both HTC and RIM have been making steady progress toward the one million shipments per quarter mark in EMEA and are now very close to each other in market share terms, but it is possible that they will be overtaken by Apple in Q3 following the launch of the iPhone 3G in many countries in the region.

The smart phone market continues to be boosted by user demand for high-end features. This is unlikely to be dramatically affected by the economic situation in the short term, though operators will likely become even more unwilling to heavily subsidise high-end devices without adequate proof of return, and contract lengths and the time between upgrades are expected to increase. Canalys estimates that 58% of the smart phones that shipped in EMEA in Q2 had integrated Wi-Fi, 13% had stylus or finger-driven touch screens and 38% had integrated GPS.

Today, many owners are not making full use of their smart phones features, said Canalys senior analyst Pete Cunningham. Concern over usage costs is still a big barrier, though wider availability of flat rate data plans will help, and usability still needs to improve for certain applications on many devices. People are also wary of draining their battery and not being able to make calls. Battery life isnt helped by having GPS and Wi-Fi turned on, nor by having a large, bright screen for navigation or web browsing. But there is clear demand for those features and applications, and advances in battery technology would enable quite substantial changes in usage patterns, with all the service revenue benefits that would bring.

Recent consumer research conducted by Canalys in several European countries reinforces the importance of balancing features against power consumption. In a survey of over 4,000 mobile phone users in March, battery life came out as the aspect of their phone they were least satisfied with. Another survey of 3,000 consumers in June showed that having better battery life than current mobile phones and notebooks would make two-thirds of respondents more, or much more, likely to purchase a Mobile Internet Device (MID) a device designed for web browsing on the move. This registered as a stronger influence than the inclusion of features such as GPS, mobile TV or the ability to make phone calls.

As the number of GPS-equipped phones rises, adoption of location-based services (LBS) becomes a more realistic prospect. Canalys European consumer surveys also reveal interest in a variety of such services. The most popular are those that relate to driving, such as getting information on local road traffic, speed cameras, open petrol stations and current fuel prices. The services that fewest respondents thought would be useful were those that delivered information on local cinemas and programme times, and local retail price comparison and stock searches.