Windows Phone takes third place in Q2 with 8.7 million units shipped

The IDC pushes out quarterly reports that give us insight into the breakdown of the mobile market. In a report that hit the web today, IDC is stating that Windows Phone has the highest Year-over-Year growth of the top five platforms and has solidified itself in the third position in the marketplace.

Not surprisingly, Nokia has pegged control of the Windows Phone vendors and accounted for 81.6% of the smartphones shipped with Windows Phone OS. For Nokia, this is a number that they would like to maintain as the company is working to keep its numbers in the black after making a dramatic shift in its business model to support Windows Phone instead of Symbian as its primary OS.

But, despite having high growth, Windows Phone was still dominated by Android with 187 million units shipped, Apple came in second with 31.2 million units shipped and Windows Phone picked up the rear with 8.7 million units.

But, growth is growth and Microsoft and its Windows Phone platform are headed in the right direction and have easily surpassed Blackberry who was down 11.7% with 6.8 million units shipped.

To little surprise, Samsung, whose Galaxy line of phones has been able to carve out a niche in the crowded Android ecosystem, dominated Android vendors. Interesting as well, Samsung bested HTC in the Windows Phone segment, which is a bit surprising, as the HTC 8x has been well received among consumers.

Source: IDC

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We're #3! We're #3!

Seriously though - this is as high, ranking wise, as I want WP. I want their market share to grow enough to be profitable for MS and its partners, but I think its for the best I'd they're always behind and hungry. If they get to 2nd or 1st, they could get fat, lazy and complacent.

They will never catch Android, so I wouldn't worry; too many OEMs churning out cheap droids for that to ever happen. But I think they have a chance of catching Apple - even though I do expect Apple to start growing again once they bring out a cheaper handset. But even if MS do overtake Apple in a year or so, they wouldn't get lazy. Firstly MS seem a very different beast to what it was years ago and is more hungry and agile, and secondly the mobile space is too competitive and too cutthroat to ever rest.

I expect Apple's market share to go up once the cheaper models come out. People are currently opting for the cheaper 4/4s over the 5 right now. Same for iPads...more opting for the mini. So their market share will probably go up.

Yeah Apple will have a resurgence and fight back against Android. Still plenty of pie their for Nokia however. I reckon they will both start eating in Android.

techbeck said,
I expect Apple's market share to go up once the cheaper models come out. People are currently opting for the cheaper 4/4s over the 5 right now. Same for iPads...more opting for the mini. So their market share will probably go up.

Only if it's actually cheap. I'm talking like $200 or less outright.

If they try the usual trick of presenting a turd and charging "JUST $400!" it'll go nowhere. People have wised up.

If Nokia can keep growing it's quarter numbers at the rate they have been then they should hit 10million by Q4. It seems most Android makers are in that 10mil range with Samsung running away with the lions share of course.

I remember when LG hit 10million for the first time and people made a big deal about it. Wonder what they'll say when Nokia reaches that mark.

Surprising that HTC still couldn't beat Samsung in the WP race despite the 8X/8S being on the market longer and I believe on more carriers.

Android is growing fast. I don't see them moving from that spot. Can Microsoft catch the iPhone is the question. They may just settle in at third and try to maximize profits from there.

JHBrown said,
Android is growing fast. I don't see them moving from that spot. Can Microsoft catch the iPhone is the question. They may just settle in at third and try to maximize profits from there.

With a large enough overall market like the smartphone one is, even if you're in 3rd place but sell 20million a quarter then I'd say you're doing quite fine.

GP007 said,

With a large enough overall market like the smartphone one is, even if you're in 3rd place but sell 20million a quarter then I'd say you're doing quite fine.

I agree. Look at Apple and their OSX. They are still profitable even though Windows dominates the computer market.

if nokia keeps this growth going,i see more manufacturers putting their hat in and really putting effort into their phones. all it takes a few more to get the ball rolling. theres a reason android sells that many phones. you've got every manufacturer in the world pumping out these phones. look at nokia,approaching top 5 vendor territory,yet its the combination of all the little manufacturers that make up a huge chunk of phones sold.

It's already been stated by analysts that they feel OEMs won't get serious about doing this until MS drops it's licensing costs to be more in line with Android. Since Android is free to license, it's hard to compete with that. Granted, there are costs for OEMs that don't want vanilla Android, but the licensing for WP might outweigh even that.

MS needs to make it virtually free to use, and try making money other ways until the platform is more successful, then slowly ratchet up licensing costs.

For example, MS might try not charging licensing on units created but units sold and with lower licensing costs as well. It would definitely shift the risk of going with a platform with regard to licensing the OS.

If there continues to be many new WP phones released every year, I don't think it would be too hard for them to catch up to iOS. Though if Apple starts coming out with an annual "plastic" model and a phone with a bigger screen, then I think iOS will start reeling in a lot more market share.

ahinson said,
It's already been stated by analysts that they feel OEMs won't get serious about doing this until MS drops it's licensing costs to be more in line with Android. Since Android is free to license, it's hard to compete with that. Granted, there are costs for OEMs that don't want vanilla Android, but the licensing for WP might outweigh even that.

MS needs to make it virtually free to use, and try making money other ways until the platform is more successful, then slowly ratchet up licensing costs.

For example, MS might try not charging licensing on units created but units sold and with lower licensing costs as well. It would definitely shift the risk of going with a platform with regard to licensing the OS.

Or, they can lower the costs as more units are sold/shipped. Like the first 100k can be one price and then the next batch can be less and so on.

Astra.Xtreme said,
If there continues to be many new WP phones released every year, I don't think it would be too hard for them to catch up to iOS. Though if Apple starts coming out with an annual "plastic" model and a phone with a bigger screen, then I think iOS will start reeling in a lot more market share.
The issue in going plastic for Apple, is that Apple has gone to great lengths to market themselves as being a premium brand. How else can they justify their exorbitant pricing for a product that does nothing more than their cheaper plastic contemporaries?

ahinson said,
It's already been stated by analysts that they feel OEMs won't get serious about doing this until MS drops it's licensing costs to be more in line with Android. Since Android is free to license, it's hard to compete with that. Granted, there are costs for OEMs that don't want vanilla Android, but the licensing for WP might outweigh even that.

oems pay something like $15 or more to Microsoft to use android. not only that,to have the store and google apps also costs a fee too. according to zte, Microsoft charges anywhere from $23-$30 to license wp. I don't think licensing is the issue here.

ahinson said,
The issue in going plastic for Apple, is that Apple has gone to great lengths to market themselves as being a premium brand. How else can they justify their exorbitant pricing for a product that does nothing more than their cheaper plastic contemporaries?

Well yeah, I'm sure Jobs will be rolling in his grave. But this isn't the first thing that's gone against what Jobs wanted. The iPad Mini was something he was highly against.

The market is simply too huge for them to continue playing purely the luxury game. The plastic iPhone will still give people the same experience, but the trade-off of a plastic chassis is a much lower price. Samsung pretty much proved that people don't mind a crappy build, so now Apple is taking the dive too.

ahinson said,
The issue in going plastic for Apple, is that Apple has gone to great lengths to market themselves as being a premium brand. How else can they justify their exorbitant pricing for a product that does nothing more than their cheaper plastic contemporaries?


All except one model of the Lumia line is plastic and they are considered high end as well. The Lumia 920 for instance.


It doesn't matter that they use plastic. It matters that it doesn't look or feel cheap. Nokia proved that can be done. So I don't forsee a plastic iPhone looking like a Samsung Galaxy.

What MS need to do is dissect a Galaxy S3 and a S4 and work out how to get WP on it. Get all the people out there who are getting bored of their Android's a way to flash WP - even just to play with - would overnight give them a potentially vast new audience. I've no idea if it's possible, probably not, but it'd be an interesting experiment and an amusing reverse on the usual comments on Nokia that "I'd buy it if it had Android on it".

shockz said,
The 3G and 3GS were plastic. Nobody ever questioned them as being cheap then....
Things have changed. Images have been built. The iPhone 3g/gs are their 2nd and 3rd gen phones. They've differentiated themselves from the plastic Android devices by using more premium materials and attracting different users. Now, plastic is coming back, and I think they think that going cheap is going to save them. I don't think it will. Android is dominating them in every market except the US, and now there's real competition in WP. Time will tell the whole story, but imo Apple is going to continue to lose market share to alternatives.

ahinson said,
Things have changed. Images have been built. The iPhone 3g/gs are their 2nd and 3rd gen phones. They've differentiated themselves from the plastic Android devices by using more premium materials and attracting different users. Now, plastic is coming back, and I think they think that going cheap is going to save them. I don't think it will. Android is dominating them in every market except the US, and now there's real competition in WP. Time will tell the whole story, but imo Apple is going to continue to lose market share to alternatives.

Agreed. I think the plastic iPhone will help if it's priced right, but they simply won't be able to compete if they only offer 2 phones per year. There are dozens and dozens of Android phones every year, and even if they sell like crap, all together it beats the hell out of Apple's numbers. Even WP will catch up at this pace. Though if they release a third model with a big screen, it might make things interesting.

Astra.Xtreme said,

Agreed. I think the plastic iPhone will help if it's priced right, but they simply won't be able to compete if they only offer 2 phones per year. There are dozens and dozens of Android phones every year, and even if they sell like crap, all together it beats the hell out of Apple's numbers. Even WP will catch up at this pace. Though if they release a third model with a big screen, it might make things interesting.

I think the 5c is going to be $100 cheaper than a 5s,and its going to replace the 5. My theory on why they are doing that is because it will sort of be an upgraded 5,not to the level of the 5s, but it will look like a good value at that price. the plastic will cut down on cost,but then they can go and add things like the rumored fingerprint scanner,better camera,etc.. Now,they have 2 new phones they can promote. the 4s and 4 will each drop $100 too. the leaks suggest the screen is as big as a 5 screen,so if they decided to make this a super cheap priced phone,wouldnt that just kill sales of the 4 and 4s? instead, this way seems like a good strategy for apple,but nothing will beat having a lot of companies shipping your operating system. apples model doesn't allow them to do that anyways,so just like the mac, they can continue to make pretty good profit on low volume. that's only natural for a closed system model like apples.

vcfan said,

I think the 5c is going to be $100 cheaper than a 5s,and its going to replace the 5. My theory on why they are doing that is because it will sort of be an upgraded 5,not to the level of the 5s, but it will look like a good value at that price. the plastic will cut down on cost,but then they can go and add things like the rumored fingerprint scanner,better camera,etc.. Now,they have 2 new phones they can promote. the 4s and 4 will each drop $100 too. the leaks suggest the screen is as big as a 5 screen,so if they decided to make this a super cheap priced phone,wouldnt that just kill sales of the 4 and 4s? instead, this way seems like a good strategy for apple,but nothing will beat having a lot of companies shipping your operating system. apples model doesn't allow them to do that anyways,so just like the mac, they can continue to make pretty good profit on low volume. that's only natural for a closed system model like apples.

I think they need to do better than only chopping off $100. That thing needs to start at something like $299 (USD) for it to even sell. I'm not sure what un-subsidized phones generally cost outside of the US, but they need to price this thing competitively. Their "luxury" pricing scheme surely won't work with a plastic phone.

ilovetech said,
WP is growing fast but still a long way off. Hope it catches pretty fast now and reach magical 10% sooner.

Nokia and the Home Shopping Network are doing their best to make that happen.

ilovetech said,
WP is growing fast but still a long way off. Hope it catches pretty fast now and reach magical 10% sooner.

WP will be out of breadth by next quarter. This is best they can do. That number will remain stagnant for near future same way their Bing has been at distant third in search.

Auditor said,

WP will be out of breadth by next quarter. This is best they can do. That number will remain stagnant for near future same way their Bing has been at distant third in search.


You're basing this on what, exactly?

korupt_one said,
you just randomly pull stuff out of your arse all the time or what, Next quarter it will also grow.

And you are pulling these number from which one of your arse.

Auditor said,

WP will be out of breadth by next quarter. This is best they can do. That number will remain stagnant for near future same way their Bing has been at distant third in search.

Is this where you predict Apple will be bankrupt next quarter too?

WP doesn't have a prayer in hells chance of making any sort of significant dent in the market due to missing features and lack of customization.

Order_66 said,
WP doesn't have a prayer in hells chance of making any sort of significant dent in the market due to missing features and lack of customization.

Yea because Microsoft have already said they're not going to update WP8 or add anything new to it. /s

We have just started rolling out windows phone to 2 of our largest customers, on requests from them. Not massive in the grand scheme of things(about 1k handsets by the end of the year) but it is a trend that is continuing.

thomastmc said,

I believe this was the orifice he used: http://www.neowin.net/news/201...7-1bn-android-phones-a-year

Even at the lowest end of the projections, WP will continue to grow over the next 3.5-4 years around at least the same rate as this quarter.

WP is no where near out of "breath", but you maybe out of "breadth"

Oh now suddenly MS fanboy started believing analystic predictions about the growth in WP. I know, this is MS fanboy site but blinded by love for MS and arse pulling numbers is not going to help the real cause.

MS is late in market and came up with crappy product. WP might grow like bing grew in search market with a distant 2nd position after Google or will go up the route of Zune. LOL.

Auditor said,

Oh now suddenly MS fanboy started believing analystic predictions about the growth in WP. I know, this is MS fanboy site but blinded by love for MS and arse pulling numbers is not going to help the real cause.

MS is late in market and came up with crappy product. WP might grow like bing grew in search market with a distant 2nd position after Google or will go up the route of Zune. LOL.


HAH!

Auditor said,

Oh now suddenly MS fanboy started believing analystic predictions about the growth in WP. I know, this is MS fanboy site but blinded by love for MS and arse pulling numbers is not going to help the real cause.

MS is late in market and came up with crappy product. WP might grow like bing grew in search market with a distant 2nd position after Google or will go up the route of Zune. LOL.

Is it that I'm an MS fanboy, or just that you're an MS hateboy?

Yes, yes, everybody's wrong and you're right. So what orifice did your market predictions come from? Or, are you just another MS hateboy believing your own negative hype?

Auditor said,

Oh now suddenly MS fanboy started believing analystic predictions about the growth in WP. I know, this is MS fanboy site but blinded by love for MS and arse pulling numbers is not going to help the real cause.

MS is late in market and came up with crappy product. WP might grow like bing grew in search market with a distant 2nd position after Google or will go up the route of Zune. LOL.

I hope you're not actually an auditor in real life because you're so comically wrong.

thomastmc said,

Is it that I'm an MS fanboy, or just that you're an MS hateboy?

Yes, yes, everybody's wrong and you're right. So what orifice did your market predictions come from? Or, are you just another MS hateboy believing your own negative hype?

Atleast its not the same orifice from where you are pulling out your number. You can call me MS hateboy because I don't like their new product but you got no reason to be a fanboy. So same thing applies to you that you are MS fanboy who belives its own MS la la land. LOL

Trollercoaster said,

I hope you're not actually an auditor in real life because you're so comically wrong.

And you know the future for sure with your crystal ball. What profession you are in by the way. Let me guess you must not be the psychic.

Auditor said,

Atleast its not the same orifice from where you are pulling out your number. You can call me MS hateboy because I don't like their new product but you got no reason to be a fanboy. So same thing applies to you that you are MS fanboy who belives its own MS la la land. LOL

That's what I thought... Straight from the 4th grade schoolyard

Auditor said,

And you know the future for sure with your crystal ball. What profession you are in by the way. Let me guess you must not be the psychic.

Touchy.

Lets see in the next quarter. If WP8 is still around 8.5-9m shipments we'll congratulate you.

If not you should leave and never return.

Trollercoaster said,

Touchy.

Lets see in the next quarter. If WP8 is still around 8.5-9m shipments we'll congratulate you.

If not you should leave and never return.

Oh.. so if it remains at my prediction number then I just get congratulation and if its not the you should leave, not me, and never return.

thomastmc said,

That's what I thought... Straight from the 4th grade schoolyard

Atleast its better than your 1st grade schoolyard. Ha..Ha..

Auditor said,

Atleast its better than your 1st grade schoolyard. Ha..Ha..

Thanks for proving my point

BTW, "Atleast" is not a word. I thought that was a typo, but you've used it twice. You should work on that, along with your ability to have a somewhat thought out opinion.

thomastmc said,

Thanks for proving my point

BTW, "Atleast" is not a word. I thought that was a typo, but you've used it twice. You should work on that, along with your ability to have a somewhat thought out opinion.

English is my second language and I am good enough to use it without any problem. How fluent you are on your second language or third language. It doesn't make you smart by pointing my use of At least or Atleast. There are so many people like you who wants to be grammar nazi on public forum and you are no different. Now you go back to your Surface and play angry bird.

Auditor said,

English is my second language

Apparently from Alberta.

What's your excuse for not being a native English speaker?

Auditor said,

English is my second language and I am good enough to use it without any problem. How fluent you are on your second language or third language. It doesn't make you smart by pointing my use of At least or Atleast. There are so many people like you who wants to be grammar nazi on public forum and you are no different. Now you go back to your Surface and play angry bird.

It was just a "heads up". I didn't criticize you for it, just let you know that it's something you could correct, like being able to back up your opinions with evidence and a rational argument.

You're correct, it doesn't make me "smart" to point out the error. I don't speak another language, but I would argue that speaking more than one language doesn't make someone smart. Having a lot of knowledge on any given topic also doesn't make someone smart. What makes someone smart is their ability to logically reason, in any language and on any given topic.

I don't have a Surface and I've never played Angry Birds, not even once. I would more likely be playing Chess (or Tetris on my phone).

BTW, more accurately it would make me a "Spelling Nazi", since I was pointing out that it was not a compound word, (which has less to do with the structure of the sentence than the correct spelling/adjoining of two words). It wouldn't make me a "Grammar Nazi", because your use of "at least" with the correct spelling within the sentence structure was correct for common English

thomastmc said,

It was just a "heads up". I didn't criticize you for it, just let you know that it's something you could correct, like being able to back up your opinions with evidence and a rational argument.

You're correct, it doesn't make me "smart" to point out the error. I don't speak another language, but I would argue that speaking more than one language doesn't make someone smart. Having a lot of knowledge on any given topic also doesn't make someone smart. What makes someone smart is their ability to logically reason, in any language and on any given topic.

I don't have a Surface and I've never played Angry Birds, not even once. I would more likely be playing Chess (or Tetris on my phone).

BTW, more accurately it would make me a "Spelling Nazi", since I was pointing out that it was not a compound word, (which has less to do with the structure of the sentence than the correct spelling/adjoining of two words). It wouldn't make me a "Grammar Nazi", because your use of "at least" with the correct spelling within the sentence structure was correct for common English

Whatever dude.. if that's what make you feel happy then so be it. There is no logical explanation to fanboys and spelling Nazi. Now be happy and go play Tetris.

Auditor said,

Whatever dude.. if that's what make you feel happy then so be it. There is no logical explanation to fanboys and spelling Nazi. Now be happy and go play Tetris.

htc shipped 5.36 million phones q1, and q2 sales were up 40%. I doubt their shipments increased 40% though,because they released the htc one that has high margins.

I guess IDC neglected to show them or Sony on the chart. My guess is that they're in the top 5 Android OEMs. So, why not show them? It might have made the chart too crowded, perhaps.

Sony and HTC aren't there cos they didn't sell as much as the others, simply as that. You may see more of them in the US/UK but Lenovo, Huawei, ZTC, etc are massive in China and the Far East and are selling bigger volumes with lower margins in an area HTC/Sony just cannot compete.

Everyone looks at the Galaxy or the HTC One, but it's the cheap handsets that are pumping out and increasing the volume of Android sales.