From the operating system perspective, a newcomer was released in 4Q08 — the Android OS from Open Handset Alliance. The first device was launched by T-Mobile in the UK and manufactured by HTC. The expectations were high, it being the first Google phone, but the results were modest. "T-Mobile G1 was not a revolutionary device in terms of hardware, despite the good impressions users get when they use it," said Jeronimo.

Even with a small market share of 0.3 percent among operating systems, the expectations are high for Android in 2009. Major vendors will release Android devices later this year, and the second device was unveiled by Vodafone at the World Mobile Congress 2009 in Barcelona last week — the HTC Magic. Currently the momentum is all about Android devices.

"We believe Android OS will get an important share of the market in the converged mobile devices segment within the next three years. Android is getting the necessary support from operators and manufacturers to be a major OS in the upcoming years, bringing low to mid-price tier smartphones to the consumer."

Top Mobile Phone Vendors
Nokia is well settled as the smartphone leader, with a market share of 53.6 percent. The E71, E51, E85, N95 and 5800 XpressMusic were the most shipped products during the quarter. In 2008, Nokia announced several partnerships (IBM, Microsoft) that will leverage its devices among enterprises and business professionals, where BlackBerry is well implemented.

Research in Motion successful products gave it a 16.7 percent market share, twice that of the previous quarter. The company's experience in converged mobile devices makes RIM a key player in the prosumer market with its well-known BlackBerry devices. The new BlackBerry Storm and BlackBerry Bold contributed to the excellent performance in major Western European markets in 4Q08, particularly in the UK, a major market for RIM in WE. The company shipped 3.8 million units in 2008, 85.6 percent higher than in 2007. It is also important to point out that RIM was the market leader in datacentric devices in 4Q08, with a market share of 35.2 percent.

Apple shipments decreased by 50 percent in 4Q08 from the previous quarter, totaling one million units. However, Apple achieved 10.7 percent market share in the smartphone segment, making it the third biggest segment player in Western Europe. Despite the success of iPhone, Apple will face a challenging year if new products are not introduced. The main vendors are filling up the market with a full range of touchscreen devices, most of them with more and better features than iPhone.

HTC increased shipments by 24.4 percent year on year in 4Q08 with 6.8 percent market share. Although shipments slipped by 15.2 percent from the previous quarter and were lower than in the first quarter, typically the weakest quarter of the year. The new products launched faced rising competition from BlackBerry and its South Korean rivals, LG and Samsung. In 2009, HTC will continue to be under pressure from its rivals, with the new Windows Mobile and Android devices coming to the market later this year. HTC will continue to focus on Android devices, a strategy to diversify its product mix.

Samsung is the fifth major smartphone player, with a market share of 5.4 percent. Samsung shipped half a million units to Western Europe in 4Q08, 91 percent higher than in 4Q07. Samsung F480 and i900 Omnia were the main contributors. The Windows Mobile touchscreen device (i900 Omnia) was well accepted in the market, competing during the holiday season with iPhone. Operators without an agreement with Apple subsidized the device to directly compete with iPhone. Samsung is expected to increase market share in 2009 as several devices will be launched running Windows Mobile, Android, and LiMo (Linux).

Source: IDC