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J’son & Partners Consulting presents brief results of the research: Russian and Global LTE Device Markets, Results of 3Q2014.

 

Cellular communication operators have started to implement LTE technology several years ago. For a long time, short range of affordable LTE devices is a key deterrent for new generation of networks development. Nowadays the situation has been improved – number of devices equipped with LTE is expanding and satisfies the fast growing demand on them.

 

Global LTE Device Market

 

According to GSA data 2 218 subscriber LTE devices had been launched on the market by 183 distributors of mobile devices in October 2014. The number of equipment’s suppliers increased for 53% during 2013-2014.

 

 

In October 2014, smartphones are the leaders with considerable share of 47.1% in the structure of subscriber LTE devices. For the period of 3Q2013 – 3Q2014 share of LTE-smartphones in the total range increased for 10%. Share of LTE-tablets is 9% in the range of LTE devices, it increased per 1% in October 2014 vs 3Q2013. Share of other segments (LTE-routers, LTE-USB-modems) are decreasing due to the growth of LTE-smartphones and LTE-tablets shares: from 31% till 25% and from 13% till 9% for 3Q2013 – 3Q2014 accordingly.

 

 

According to ABI Research total deliveries of LTE-phones was 335 mln pcs in 2013 and it will reach 483 mln pcs by the end of 2014. It is forecasted that the market will grow with 23% annual average rate and LTE-phones deliveries will hit 1.34 bln pcs by 2019.

 

 

Russian Market of LTE Devices

 

LTE-Smartphone Market

 

LTE-smartphones market in Russia was 1 mln pcs in 3Q2014 that is 36% more than the indicator of the previous quarter and 145% more than results of 3Q2013.

 

Increasing popularity, affordable price, expansion of range of devices and increasing penetration of 4G networks are influencing the growth of LTE-smartphones market.

 

 

According to J’son & Partners Consulting volume of Russian LTE-smartohones market was 1 mln devices or 0.6 bln USD in 3Q2014.

 

 

According to J’son & Partners Consulting in Russia average retail price of LTE-smartphone was $626 in 3Q2014.

 

LTE Smartphone Market Structure

 

  •       For 2012 - 3Q2014 share of Android-based smartphones took the major part of the market and overstepped Apple – permanent market leader since the development of LTE-devices market.
  •       The growth of manufacturers with more or less considerable sales shares on the Russian LTE-smartphones market. In 4Q2012 there have been 2 manufacturers – Apple and Nokia, in 3Q2014 – the number has increased considerable.
  •       According to J’son & Partners Consulting Apple has major sales share (in $) – 51% of the total sales in 3Q2014.
  •       Around 32% of all LTE-smartphones sold in 3Q2014 cost less than 500 USD.
  •       Around 13% of all LTE-smartphones sold in 3Q2014 cost less than 350 USD.
  •       According to J’son & Partners Consulting iPhone models are leaders by sales in 4Q2012 – 3Q2014.

 

LTE Tablet Market Structure

 

Due to J’son & Partners Consulting data in 1Q2014 14% (in pcs.) or 30% (in $) of total tablet market volume supported LTE technology.

 

 

By the of end of 1Q2014, average retail price on LTE-tablet was 22 185 RUB, while average retail price on tablet without LTE was only 8 130 RUB.

 

Average retail price on LTE-tablet is 3 times higher than the average tablet price (not supporting LTE).

 

LTE-Tablets Market Structure

 

  •       iOS is the leading operational system on the LTE-tablet market – major part of LTE-tablets operate on this OS.
  •       Apple is the leading manufacturer by sales ($ and pcs.).

 

LTE-USB-Modems Market

 

According to the preliminary estimations, made by J’son & Partners Consulting, sales of 4G modems will be higher than 3G modems, by the end of 2014 – 2.6 times growth vs 2013.

 

 

Range and Characteristics of Operator’s LTE-Devices Sold in Russia

 

 

Key Factors of Russian LTE-Device Market Development

 

Drivers

  •       Expansion of LTE-devices’ range;
  •       Price deduction on LTE-devices;
  •       The development of 4G networks in Russia;
  •       Cellular communication operators are interested in the increase of LTE-devices sales that
  •       increase a consumption of heavy content;
  •       Changes in consumers’ preferences: demand on high speed data transfer.

 

Barriers

  •       Price on LTE-devices are high in comparison with price on general devices (LTE-smartphones – 3 times higher; LTE-tablets – 2,7 times). In the meantime, this factor is not a barrier for USB-modems, as there is a slight price difference on 3G and 4G modems.

 

Russian LTE-Device Market Forecast

 

According to J’son & Partners Consulting forecast, LTE-smartphones sales will be over 20 mln devices by 2018. Sales increase 5,7 times vs same indicator in 2014. In Russia share of LTE-smartphones in the total sales of smartphones will be over 50% in 2017-2018.

 

During 2014 – 2018, average growth rate of LTE-tablet sales will be 42% and by 2018 it will reach over 7 mln devices.

 

USB-modems segment will consist mostly from 4G modems by 2018. Already now, 4G USB-modems have started replacing 3G modems: USB-LTE-modem market volume will be 6-7 mln devices by 2018.

 

 

Detailed Results of the Research are Presented in the Full Version of the Report: Russian and Global LTE-Device Market, 2012‑2018

 

 

Example of the Content

 

1. Introduction

2. Resume

3. Commercial LTE Networks in Russia. Key Market Players and Pretenders on LTE Development in Russia

3.1. Currently operating (commercial) LTE networks

3.1.1. Network coverage

3.1.2. LTE subscriber base

3.2. Planned LTE

3.2.1. Motiv

3.2.2. Osnova Telecom

3.2.3. Antares

3.2.4. SMARTS

3.2.5. TTK

4. LTE Networks Development in the World. Business Cases

4.1. LTE networks and subscribers’ devices development in the world

4.2. Business cases

5. Russian LTE-Smartphone Market, Key Indicators

5.1. LTE-smartphone market volume, pcs and $, 2012 – 3Q2014 (quarterly dynamics)

5.1.1. LTE-smartphone market volume, pcs, 2012 – 3Q2014 (quarterly dynamics)

5.1.2. LTE-smartphone market volume, $, 2012 – 3Q2014 (quarterly dynamics)

5.2. Average retail price per LTE-smartphone, market structure by price segments, 2012 – 3Q2014 (quarterly dynamics)

5.2.1. Average retail price per LTE-smartphone, quarterly dynamics (USD and RUB), 2012 – 3Q2014

5.2.2. LTE-Smartphone market structure by price segments, % of sales, pcs., 2012 – 3Q2014 (quarterly dynamics)

5.2.3. LTE-Smartphone market structure by price segments, % of sales, $, 2012 – 3Q2014 (quarterly dynamics)

5.3. LTE-Smartphone market structure by operational systems, 2012 – 3Q2014 (quarterly dynamics)

5.4. TOP sales of LTE-smartphones, 2012 – 3Q2014 (quarterly dynamics)

5.5. LTE-Smartphone market structure by federal regions, 3Q2014

5.6. LTE-Smartphone market structure by manufacturers, 2012 – 3Q2014 (quarterly dynamics)

5.6.1. LTE-Smartphone market dynamics by manufacturers, % of sales, pcs., 2012 – 3Q2014 (quarterly dynamics)

5.6.2. LTE-Smartphone market dynamics by manufacturers, % of sales, $, 2012 – 3Q2014 (quarterly dynamics)

6. Russian LTE-Tablet Market

6.1. Structure of tablets sales: +/- 4G, 1Q2014

6.2. Average retail price on LTE-tablet, 1Q2014

6.3. Structure of LTE-tablet market by operational systems, 1Q2014

6.4. Structure of LTE-tablet market by manufacturers, 1Q2014

7. USB-Modems

7.1. Range of USB-modems with LTE, sold in Russia, September 2014

7.2. USB-modems sales structure: 3G/4G, 2Q2014

8. Wi-Fi Routers

8.1. Range of Wi-Fi routers with LTE, sold in Russia, September 2014

9. Range and Characteristics of Operators LTE-Devices, sold in Russia

9.1. Range of LTE-smartphones on Russian market, September 2014

9.2. Range of LTE-tablets sold in Russia, September 2014

10. Forecasts and Tendencies, 2013 – 2016

10.1. LTE-smartphone market volume, 2014-2018

10.2. LTE-tablet market volume, 2014-2018

10.3. 4G-modem market volume, 2014-2018

11. Key Conclusions

12. Annex. Commercial LTE Networks in Russia, 3Q2014

 

 

List of Figures

Figure 1. LTE-smartphones market volume, Russia, 4Q2012 – 3Q2014

Figure 2. Average retail price on LTE-smartphones, USD., Russia, 4Q2012 – 3Q2014

Figure 3. Structure of LTE-smartphones by operational systems, % of sales, pcs., 4Q2012 – 3Q2014

Figure 4. Structure of LTE-smartphones market by manufacturers, % of sales, pcs., 3Q2014

Figure 5. Structure of tablets sales: +/- 4G, 1Q2014

Figure 6. Average retail price on LTE/non LTE tablet, 1Q2014

Figure 7. Range of LTE-smartphones, September 2014

Figure 8. Range of LTE-tablets, September 2014

Figure 9. Range of LTE-USB-modems, September 2014

Figure 10. Range of LTE-Wi-Fi routers, September 2014

Figure 35. Volume of LTE-smartphones in Russia, mln.pcs., 2013-2018

Figure 36. Volume of LTE-tablet market in Russia, mln.pcs., 2014-2018

Figure 37. Volume of 4G modem market in Russia, mln.pcs., 2013-2018

Figure 11. Volume of LTE-smartphone market, mln.pcs., Russia, 4Q2012 – 3Q2014

Figure 12. Volume of LTE-smartphone market, bln.USD, Russia, 4Q2012 – 3Q2014

Figure 13. Average retail LTE-smartphone price, USD, Russia, 4Q2012 – 3Q2014

Figure 14. Structure of LTE-smartphone market by price segments, % of sales, pcs., Russia, 4Q2012 – 3Q2014

Figure 15. Structure of LTE-smartphone market by price segments, % of sales, $, Russia, 4Q2012 – 3Q2014

Figure 16. Structure of LTE-smartphone market by operational systems, % of sales, pcs., 4Q2012 – 3Q2014

Figure 17. Leaders of LTE-smartphone sales by quarters, thousand pcs., Russia, 4Q2012 – 3Q2014

Figure 18. Structure of LTE-smartphone sales by federal regions, Russia, 3Q2014

Figure 19. Structure of LTE-smartphone market by manufacturers, % of sales, pcs., Russia, 4Q2012 – 3Q2014

Figure 20. Structure of LTE-smartphone market by manufacturers, % of sales in $, Russia, 4Q2012 – 3Q2014

Figure 21. Structure of tablets sales: +/- 4G support, 1Q2014

Figure 22. Average retail price per LTE-tablet / tablet without LTE 1Q2014

Figure 23. Structure of LTE-tablets by operational system, 1Q2014

Figure 24. Structure of LTE-tablet market by manufacturers, 1Q2014

Figure 25. Structure of LTE-USB modem market range sold in Russia, September 2014

Figure 26. Structure of USB modems sales: with support of 3G/4G, mln.pcs., Russia, 2012 – 2014

Figure 27. Structure of LTE-Wi-Fi routers’ range, sold in Russia, September 2014

Figure 28. Share of manufacturers by presented range of LTE-smartphones, September 2014 (based on TOP 30 popular LTE-smartphones – version of Yandex.market)

Figure 29. Share of operational systems by presented range of LTE-smartphones, September 2014 (based on TOP 30 popular LTE smartphones – version of Yandex.market)

Figure 30. LTE-smartphones market structure by price segments by presented range of LTE-smartphones, September 2014 (based on TOP 30 popular LTE-smartphones – version of Yandex.market)

Figure 31. Structure of LTE-tablets offer by operational systems, Russia, September 2014

Figure 32. Share of manufacturers by presented range of LTE-tablets, September 2014

Figure 33. LTE-tablet market structure by price segments and presented range of LTE tablets, September 2014    Figure 34. LTE-tablet market structure by CRT size by presented range of LTE tablets, September 2014

Figure 35. LTE-smartphone market structure in Russia, mln.pcs., 2013-2018

Figure 36. LTE-tablet market volume in Russia, mln.pcs, 2014-2018

Figure 37. 4G modem market volume in Russia, mln.pcs, 2013-2018

 

 

List of Tables

Table 1. Number of devices, which operates in LTE FDD, LTE TDD

Table 2. List of announced LTE-TDD devices, as of December 2012

Table 3. List of announced USB-modems LTE-TDD, as of December 2012

Table 4. Main suppliers of LTE-TDD chipsets and centers of their maintenance

Table 5. TOP-10 leaders by LTE smartphones sellers, pcs., 2Q2014

Table 6. Range of USB modems with LTE support, sold in Russia, 3Q2014

Table 7. Range of Wi-Fi routers, supporting LTE technologies, sold in Russia, 3Q2014

Table 8. TOP-30 by popularity of LTE smartphones, as of September 2014, Yandex.market

Table 9. Range of LTE tablets on the Russian market, as of September 2014

 

This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.