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Global 2013 smartphone sales to hit 1 billion: survey
by Staff Writers
Washington (AFP) Sept 04, 2013


iPhone expected to star at Apple event September 10
San Francisco (AFP) Sept 03, 2013 - Apple on Tuesday fired off invitations to a September 10 event at which it is expected to spice up its iPhone line and unveil a low-priced version.

In true Apple style, the invitations revealed little. The message, "This should brighten everyone's day" was below the company logo on a page dotted with brightly colored circles.

The design seemed to lend credence to unconfirmed reports that Apple plans to release iPhones in a rainbow of colors, including gold.

The special event will take place at Apple's headquarters in the Silicon Valley city of Cupertino.

Apple is widely believed to be readying two new versions of its iPhone, with one a less expensive model to win over budget buyers in emerging markets such as China.

Apple's move comes as pressure mounts from rivals such as Samsung that field a Android-powered smartphones running the gamut of prices.

Speculation has centered around whether Apple will shift its strategy of focusing on premium devices priced at the high-end of the market to include a lower-cost handset appealing to people with tight budgets.

While new iPhones promise to grab attention, a centerpiece of the Apple event will be the dramatically overhauled touch-screen interface.

In June, Apple unveiled what chief executive Tim Cook branded the biggest change to iOS -- Apple's mobile operating system -- since the introduction of the iPhone in 2007.

Jonathan Ive, the man behind the winning hardware designs of Apple products, put his mark on the icons, layout and style of the home and lock screens people use to engage with Apple mobile devices.

The new iOS comes with a hotly anticipated iTunes Radio Service featuring more than 200 stations "and an incredible catalog of music" from Apple's online shop.

The ad-supported free music service "offers music fans access to thousands of new songs every week, as well as serving up exclusive music from new and popular artists before you hear them anywhere else," Apple said.

Apple last week began letting US iPhone owners trade in their smartphones for credit toward buying new models.

As the smartphone market in the United States and other Western countries matures, companies may have better luck encouraging upgrades rather than reaching out to first-time buyers, according to Gartner analyst Van Baker.

Motives for Apple's trade-in program likely include keeping iPhone users loyal to the smartphones as well as the lucrative iTunes shop for digital music, films, and books.

"Keeping people in the fold is what it is all about," Baker said.

South Korean Samsung has found global success with smartphones powered by Google's free Android software, which now dominates the market.

Global smartphone sales are expected to top one billion in 2013, driven by low-cost handsets and gains in emerging markets, a research firm said Wednesday.

International Data Corp said it sees the smartphone market growing 40 percent this year, and will likely grow to 1.7 billion annually by 2017.

Overall mobile phone sales will grow 7.4 percent, rebounding from a nearly flat year in 2012, IDC said. Total mobile handset sales are expected to be some 1.8 billion, with more than half of that in the smartphone segment.

Smartphone growth is the result of a variety of factors, including steep device subsidies from carriers, especially in mature economic markets, as well as a growing array of sub-$200 smartphones.

"Two years ago, the worldwide smartphone market flirted with shipping half a billion units for the first time -- to double that in just two years highlights the ubiquity that smartphones have achieved," said Ramon Llamas, IDC's mobile research manager.

"The smartphone has gone from being a cutting-edge communications tool to becoming an essential component in the everyday lives of billions of consumers."

By 2017, smartphones are expected to take over nearly all sales in the most developed economies, according to IDC's Kevin Restivo.

"Aggressive carrier subsidies of handsets, falling prices, higher consumer awareness, and a vast array of devices will mean almost all phones shipped to the developed world will be 'smart,'" he said.

"However, smartphone shipment volume will be dominated by emerging markets, such as China, even though the percentage of smartphones to feature phones won't be as high."

Llamas said the Google Android system will remain the top platform, followed by Apple's iOS.

"What remains to be seen is how Windows Phone and BlackBerry's respective futures will play out pending their recent announcements," said Llamas. "Windows Phone has inched ahead of BlackBerry during the first half of 2013, and we believe that will extend into the future. However, overall shipments will continue to trail those of Android and iOS."

The IDC forecast indicates Windows Phone market share will increase to 10.2 percent by 2017 from 3.9 percent this year, while Android's share will slip to 68 percent from this year's 75 percent. Apple meanwhile is expected to see modest gains to 17.9 percent from 16.9 percent, IDC said.

A Kantar Worldpanel ComTech report released Wednesday indicated that Android still dominated the US market despite its share slipping more than seven percent to 51.1 percent in the second quarter of this year.

Meanwhile, Apple's iOS grew nearly eight percent to claim 43.4 percent of the US market, according to Kantar.

"However, with Microsoft's acquisition of Nokia, we may see a larger proportion of consumers choosing a Windows device over iOS or Android, replicating the strength seen in Europe and Mexico," Kantar said in its report.

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