Week in a Nutshell #6

Welcome to the sixth episode of the 'Week in a Nutshell’ series.

Smartphone industry has been a popular topic in my blog. I believe statistics about the smartphone market in China will be an interesting read in this post. Please feel free to have a look at my previous posts if you are interested in technology and mobile ecosystem.

Headlines:

  1. Xiaomi Passes Samsung as Top Smartphone Vendor in China in 2014
  2. Social Selling - Book Your Next Hotel Room Via Instagram
  3. Mobile Game Revenues to Grow 16.5% in 2015, Surpassing $3 Billion

Xiaomi Passes Samsung as Top Smartphone Vendor in China in 2014

International Data Corporation (IDC) has recently released their Asia/Pacific Quarterly Mobile Phone Tracker analysis. According to the analysis, 107.5 million smartphones were shipped to China in Q4'2014. This rounds up to 420.7 million smartphones being shipped to China in 2014. 

Source: IDC

I believe these charts clearly show the strong presence of Xiaomi in China and its great performance in 2014. I have huge respect for Xiaomi as they provide high-quality products while keeping the prices significantly low compared to the competition. For example, Xiaomi's latest Android-based Mi Note phablet is half the price compared to iPhone 6 Plus ($370 vs. $749) and these two devices nearly have the same technical qualifications. Xiaomi proves that you don't have to spend a small fortune for a high-quality smartphone!

I assume Xiaomi's strong performance also affected Samsung negatively as Samsung dropped to the fifth position in Q4'2014. I'm impatiently waiting for Samsung Galaxy S6 announcement in the first week of March to see if Samsung has listened to customer feedback and taken actions accordingly. I expect Samsung to remove most of the bloatware (Samsung's low-quality native apps in Galaxy S series that no one uses) as a part of their forked Android operating system in the new Galaxy S6. It would be a good starting to compete with iPhones and Xiaomi's Mi series smartphones.

In the first chart, we also see that Apple had a very strong entrance into China in Q4'2014 getting the second spot after Xiaomi. As I mentioned in my previous post, 'Week in a Nutshell #3', Apple's entrance into China had a vital contribution to their record-breaking Q4'2014 financial performance. Apple gained 12.3% smartphone market share in China in Q4'2014 meaning that 13.2 million iPhones were sold. This constitutes 17.7% of 74,5 million iPhones sold worldwide in Q4'2014.


Social Selling - Book Your Next Hotel Room Via Instagram

Conrad Hotels are experimenting with the Like2Buy technology on Instagram. Like2Buy enables brands to direct Instagram followers to a specific website after followers like a post.

I believe social selling, or social commerce, could be next big thing for the brands since Generation Y and Z spend significant amount of their leisure time on social media platforms such as Twitter, Instagram and Snapchat. I assume liking an Instagram post or adding a Tweet to favorites is more common than visiting Amazon.com, manually searching for the product and adding it to your cart or your wishlist. Imagine if you could buy a product by just liking an Instagram post or adding a Tweet to your favorites. Wouldn't that be cool?


Mobile Game Revenues to Grow 16.5% in 2015, Surpassing $3 Billion

Revenue generated by mobile games reached $2.61 billion in US in 2014 and estimated to surpass $3 billion in 2015. This is the reason why I wasn't surprised when I saw several ads from mobile gaming applications such as Game of War and Clash of Clans during this year's Super Bowl. Mobile gaming market is big and growing. It should not be underestimated. 

Source: eMarketer


Hereby, we came to the end of the sixth episode of ‘Week in a Nutshell’ series. If you enjoyed this post, I'd be happy if you could comment, share, like and/or recommend it. 

Thanks,
Birkan