Canaccord Genuity Technology Analyst Michael Walkley’s February channel checks for the mobile device market indicated stronger sell-through trends than January in the U.S., with sales somewhat rebounding after a slow start to 2012. A few highlights from his checks:
- iPhone sales remained strong in the U.S. and sell-through of the iPhone led to additional market share gains versus its competitors. Further, strong global share gains continue with the iPhone 4S selling well in international markets including Brazil, Russia, and China. While Android tablets were a primary focus at last year’s MWC, Walkley notes that most Android OEMs offered tablets but focused meetings on new smartphone offerings. With the iPad 3 expected to be announced on March 7, Walkley believes Apple will likely dominate tablet market share for the remainder of 2012.
- Sales trends remained weak for both RIM and HTC with current smartphones from these OEMs struggling to sell versus the iPhone and Samsung Galaxy S II smartphones. HTC has lost significant share in the U.S. market the past several months following the iPhone 4S and Samsung Galaxy S II launches. In addition, Walkley’s checks indicated continued soft BlackBerry sales due to high-end share losses in leading smartphone markets combined with lower-priced Nokia (NOK) feature-phones and sub-$200 Android smartphones adversely impacting sales in emerging markets. The only notable areas of inventory from his checks were some BlackBerry 7 smartphones and HTC 4G inventory at both the Sprint (S) and Verizon (VZ) channels;
- Qualcomm has a strong position with OEMs gaining global smartphone market share such as Apple, Samsung, and Chinese OEMs. Further, Walkley’s meetings with smartphone OEMs and industry contacts at MWC indicated strong design wins for Qualcomm’s integrated 28nm 8960 chipset and other multi-mode LTE Snapdragon solutions. Therefore, he believes Qualcomm is well positioned to build on its leading 3G and 4G chipset market share and grow market share during F12. If Qualcomm can ramp production to meet the very strong demand for its integrated LTE MSMs, then Walkley believes his F12 estimates could prove conservative.
Apple (AAPL : NASDAQ : US$532.70), Net Change: -12.48, % Change: -2.29%, Volume: 27,456,171
Qualcomm (QCOM : NASDAQ : US$62.10), Net Change: -0.33, % Change: -0.53%, Volume: 7,732,144 Research In Motion (RIMM : NASDAQ : US$13.29), Net Change: -0.50, % Change: -3.63%, Volume: 13,835,210