Mobile Penetration rates will continue its increase with Android dominating

Economic conditions had slowed down the overall mobile penetration increase in 2012. However, penetration rates will climb this year at a rate that manufacturers expect to increase their volume of handsets. Overall, global market penetration is expected to be over 91% for last year.. This is based on a study performed by Erickson. A closer look at these numbers, reveal why manufacturers like Samsung will continue ship record levels of handsets.

It should be no surprise that Europe has the highest penetration rates. Many Europeans carry two devices or continuous swap their SIM cards. At 128%, Europe sits at the top of spectrum. Latin America, the Middle East, and North America also have penetration rates about 100%. Essentially, the people in these countries who want a cell phone, have at least one. Asia (excluding China and India), are reaching a similar penetration rate, with around 96% of their people with a mobile device. This leaves China (81%), India (72%), and Africa(67%)at the bottom. China and India represent around 2 billion of the world’s 7 billion residents.

Samsung, LG, Nokia, and other manufacturers will definitely be focusing their efforts on India and China.  Although India’s economy continues to experience growth, there is a defined gap between the rich and the poor. In addition, many of India’s rural communities have little or no access to the infrastructure necessary to have cell phone service. India’s government has placed regulatory mechanisms to encourage rural service and telecoms providers know its importance in growing a subscriber base. Manufacturers must be able to offer low-cost devices in order for consumers to be able to afford their product. A similar, low-cost strategy must be used in China as well. Domestic manufactures Huawei and ZTE will also help improve China’s penetration rates. It is much easier for these manufacturers to sell their product in China than a foreign organization such as HTC.

When it comes to the OS market share, Android will continue to dominate this year. Samsung has had its biggest year due to its success with their Galaxy series. Google purchased Motorola last year and is expected to improve its smartphone lineup. Apple’s iOS continues to hold strong despite its disappointing iPhone 5. For Apple to continue its success, they must be able to offer a lower cost smartphone to be more affordable to users world-wide.

Androids market share in 2012 was around 68%, with Apple a distant 18.8%. RIM finished at 4.7% market share and is expected to launch its new Blackberry 10 operating system early this year.    The Canadian manufacture faces an uphill battle, as they fight to gain back the market share they have lost to Android and iOS. Many analysts believe that RIM is far too late to save the OS from a fate similar to  Palm.  Windows Phone ended the year at 2.6% with its highly anticipated launch of Windows Phone 8. The platform merges Microsoft’s operating system for their computers, tablets, and smartphones. This simplified strategy could have worked well for Microsoft if consumers did not feel so confused trying to use their OS. Although Microsoft has yet to release official numbers, sales of the OS have appeared to be quite dismal.

Whether you are LG or RIM, the critical success factors will be the same: Innovation, an appealing marketing strategy and cost-friendly. In the mobile industry, its all about being first. Apple revolutionized the touchscreen mobile device and created and operating system that even the most non-technical consumer can pick up and use. Samsung’s creative advertising propelled their Galaxy S 3 device as the new “cool” device for the younger generation. Nokia had once enjoyed tremendous growth with selling basic phones to 2^nd and 3^rd world countries. Many manufacturers and OS platforms struggling through 2012 and this year will either make or break these organizations.