APPLYING THE CONCEPTS 2.3 The following table, stored in Smartphone Sales, repre
ID: 3353960 • Letter: A
Question
APPLYING THE CONCEPTS 2.3 The following table, stored in Smartphone Sales, represents the annual market share of smartphones, by type, for the years 2011, 2012, and 2013. Type Android iOS Microsoft Blackberry Other OS 2011 47% 19% 2% 11% 21% 2012 66% 19% 3% 5% 790 2013 78% 16% 3% 2% 1% Source: Data extracted from gartner.com/newsroom/id/2665715 and www.gartner.com/resId=23349 16. a. What conclusions can you reach about the market for smart- b. What differences are there in the market for smartphones in 2011, 2012, and 2013?Explanation / Answer
Part a.
(1) As we go from 2011 to 2013, the market share of Android type smartphones has increased from 47% to 66% to 78%. This means that the Android phones are becoming more and more preferred choice among smartphone users.
(2) On the other hand, market share of Bleckberry phones has been on a significant decline from 11% in 2011, to 5% in 2012 to only 2% in 2013. Therefore, we conclude that the Blackberry phones are drastically reducing its appeal among smartphone users.
(3) Same trend is seen for smartphones in "Other OS" category.
(4) However, iOS and Microsoft smartphones are the ones, who have nearly maintained a constant market share during this time period. After maintaining the 19% share of 2011 into 2012, iOS phones has shown only small dip of 3% and reached 16% of market share in 2013. Microsoft has nearly remained constant from 2% in 2011 to 3% in both 2012 and 2013.
Part b:
(1) In 2011, smartphones marketshare data is less skewed towards Android phones i.e. there is 53% (more than half the market) contribution in market share coming from all the other phone types put together in 2011. However, as we move into 2012 and 2013, this market share data is becoming more and more skewed towards Android phones.
(2) In 2011, Blackberry had significant marketshare of 11%. But this has reduced to a very small numbers 5% and 2% in 2012 and 2013 respectively. So in 2013, Bleckberyy has almost no share in smartphone market.
(3) "Other OS" category smartphones have also seen drastic reduction in their market share. In 2011, they were having marketshare of 21%, which has gone doen to mere 1% in 2013.