Research firm Strategy Analytics today announced its estimates of the global smartphone market for the fourth quarter of 2011, finding that Apple narrowly squeezed by Samsung to retake the title of world's largest smartphone vendor as measured by unit shipments. According to Strategy Analytics' numbers, Apple's 37 million iPhones narrowly eclipsed Samsung's quarterly smartphone shipments of 36.5 million units.

Neil Mawston, Executive Director at Strategy Analytics, added, “While Apple took the top spot in smartphones on a quarterly basis, Samsung became the market leader in annual terms for the first time with 20 percent global share during 2011. With global smartphone shipments nearing half a billion units in 2011, Samsung is now well positioned alongside Apple in a two-horse race at the forefront of one of the world’s largest and most valuable consumer electronics markets.”

Strategy Analytics showed Apple first taking the title in the second quarter of 2011 as it passed Nokia and held off a surging Samsung to become the world's largest smartphone vendor. But Apple's reign at the top was short-lived as Samsung easily topped the list in the third quarter on continued growth paired with a pause in iPhone sales ahead of the iPhone 4S launch. With the iPhone 4S launch now fueling Apple's numbers, it was able to retake the lead from Samsung in the fourth quarter, although it was not able to top the charts for full-year 2011.

One caveat for numbers released by Strategy Analytics and other research firms comes from the fact that Samsung no longer reports mobile phone sales numbers, ending the practice in mid-2010 for competitive reasons. Consequently, observers can only estimate Samsung's sales numbers based on the company's financial performance and other evidence.

AT&T today announced its financial results for the fourth quarter of 2011, revealing that the carrier saw record-smashing sales of 9.4 million smartphones, nearly double the previous quarter's sales and 50% higher than the company's previous record. The iPhone was clearly the primary driver of smartphone sales for AT&T, as the carrier reported 7.6 million iPhone activations during that quarter, with the "majority" of those activations being iPhone 4S devices.

In the fourth quarter, the company set a new record with 9.4 million smartphones sold, nearly double the number sold in the third quarter and 50 percent more than the previous quarterly record. Fourth-quarter smartphone sales represented more than 80 percent of postpaid device sales. Both iPhone and Android device sales set records. During the quarter, more than 7.6 million iPhones were activated, the majority of which were iPhone 4S, which went on sale Oct. 14, and more than twice as many Android smartphones were sold versus the fourth quarter a year ago. iPhone sales were helped by a superior customer experience, with AT&T delivering download speeds up to three-times faster than on other U.S. carriers' networks.

The iPhone and total smartphone numbers can not be directly compared, however, as the "activations" number AT&T reports for iPhones includes used devices activated on new contracts such as when a user's old device is sold or given away upon upgrading.


AT&T also touts its lead over Verizon in iPhone activations, noting that it has continued to easily outpace Verizon every quarter since AT&T lost exclusivity on the iPhone in early 2011.


Finally, AT&T notes that it has continued to improve its voice and data network, with more than 80% of data traffic now coming over the carrier's enhanced backhaul that allows for "4G" speeds on devices supporting at least HSPA+, such as the iPhone 4S. The carrier also reports that "call retainability", an inverse measure of dropped call rates, has continued to increase and was over 99% throughout the quarter for 3G connections on a nationwide basis.

Following a major expansion of iPhone 4S availability to China and 21 other countries two weeks ago, Apple appears to be preparing to make a few more additions to the device's market reach this Friday, January 27.

Apple's current iPhone partners in Indonesia, Telkomsel and XL have both announced that they will begin carrying the iPhone 4S on Friday. Telkomsel is the country's number one carrier with over 100 million customers, while XL ranks number three with approximately 46 million customers. Meanwhile, the iPhone 4S will be arriving in Costa Rica on the same day, with newcomers Claro and Movistar joining existing iPhone partner Kolbi in offering the device.


iPhone 4S teaser notice from Telkomsel
While France already has several carriers supporting the iPhone and the country is typically among the first to offer new iPhone models, the country's iPhone offerings may be ripe for a shakeup as new carrier Free Mobile will also begin offering the iPhone 4S on January 27.

The carrier is currently offering unlimited talk/text/data packages without phones priced at €19.99 per month with no contract. Current customers of Free's home Internet service pay only €15.99. The carrier has yet to announce pricing for any iPhone plans that could come on contract with subsidized devices, but The Connexion reports that Free's iPhone plans would be "half the price" of competitors offerings.

9to5Mac reports that it has received word from a "reliable" source at Foxconn that Apple is gearing up to begin production of the iPhone 5, suggesting that the company could be pushing for a mid-year launch more in line with pre-iPhone 4S debuts.

The source said various sample devices are also floating around (which vary slightly from one another) so it is impossible to tell which one will be the final. Some things in common with all of them, however, are:

- 4+ inch display (made by LG on at least one of them)
- No teardrop-shaped devices as were rumored in the lead up to the iPhone 4S. Samples so far have been symmetrical in thickness. Also longer/wider.
- None of the sample devices have the iPhone 4/4S form factor
- None of the devices are final versions

The report notes that the start of production seems to be coming several months ahead of last year's schedule, indicating that Apple could be targeting a launch well ahead of last year's October debut of the iPhone 4S. Consequently, Apple could be returning to its traditional iPhone launch pattern of an introduction at the company's Worldwide Developers Conference (typically held in June) with availability in the first batch of countries coming just a few weeks later.


Some of the details of today's report are very similar to those shared in an iLounge report from last November that also claimed a 4-inch next-generation iPhone 5 without a teardrop shape was being targeted for a summer launch.

Speculation on Apple's next-generation iPhone launch timing has been split, with some observers suggesting that the iPhone 4S was an anomaly for Apple and that it will return to the usual mid-year timeframe, while others have suggested that moving back to the mid-year launch would make for an extremely short lifecycle for the iPhone 4S.

Update: Daring Fireball's John Gruber specifically refutes the claim that iPhone 5 production is starting up. He also doubts the claim that the device is likely to be longer and wider that the current form factor, although he does not appear to suggest that he has specific knowledge on that aspect.

Reuters reports on new data from research firm Kantar Worldpanel ComTech showing that Apple slipped past Android by the narrowest of margins in fourth quarter U.S. smartphone sales, with Apple's iPhone taking 44.9% of the market and Android taking 44.8%.

"Apple has continued its strong sales run in the U.S., UK and Australia over the Christmas period," Dominic Sunnebo, global consumer insight director at the research firm said.

"Overall, Apple sales are now growing at a faster rate than Android across the nine countries we cover," Sunnebo added.

The results, driven by Apple's blockbuster quarter in the wake of the iPhone 4S launch, saw Apple double its U.S. sales share year-over-year while Android slipped from its 50% share a year ago. Apple yesterday reported sales of 37 million iPhones during the quarter, far exceeding expectations.


Kantar's report also focuses on Windows Phone, which continues to struggle despite the high-profile launch of Nokia's Lumia smartphones. Windows Phone's market share remains at less than 2% in all nine markets followed by Kantar.

Earlier this month, Verizon Wireless Chief Financial Officer Fran Shammo noted that the carrier had activated 4.2 million iPhones during the fourth quarter of 2011, more than doubling the previous quarter's sales on the momentum of the iPhone 4S launch and potentially signaling a blockbuster quarter for Apple in the iPhone market.

Verizon today officially announced its earnings for the fourth quarter of 2011, revealing in a conference call that the company actually activated 4.3 million iPhones during the quarter. With the carrier reporting total smartphone sales of 7.7 million units, the iPhone represented approximately 55% of the carrier's smartphone sales for the quarter.


Verizon wireless profit margins and net growth in retail customers
Smartphones now account for 44% of Verizon's postpaid customer phone base, up from 39% in the previous quarter. That strong growth in smartphones such as the iPhone significantly reduced the carrier's margins in its wireless business during the quarter as absorbed the heavy upfront subsidies paid to manufacturers for the devices. Verizon will recover those costs over the length of customers' contracts, making carriers willing to take short term hits to profitability to lock in smartphone customers on lucrative service contracts.

Last week, we noted that several carriers in Singapore were working to offer camera-less iPhone 4S models for users whose professions prevented them from carrying camera-equipped mobile phones. With Singapore requiring all male citizens and many permanent residents to serve up to two years in the military, there is a significant market for camera-less phones in the country.


CNET Asia now reports that Singapore carrier M1 has officially gone live with its camera-less iPhone 4 and 4S models on its website. As previously reported, the devices are standard iPhone 4 and 4S models which have seen both front and rear cameras removed by the carrier. The camera-free versions carry a S$49 premium over their standard counterparts, covering the camera removal process. The camera removal process also voids Apple's warranty on the device, and M1 is offering users the ability to purchase a separate one-year warranty through a third-party vendor.

Last week, research firm NPD released data showing that Apple's iOS had significantly closed the gap on Android in new U.S. smartphone sales in October and November, narrowing Android's 34 percentage-point lead to just four points in the wake of the iPhone 4S debut.


Nielsen now takes a look at its own data, showing similar momentum that had carried over through the end of 2011.

Among recent acquirers, meaning those who said they got a new device within the past three months, 44.5 percent of those surveyed in December said they chose an iPhone, compared to just 25.1 percent in October. Furthermore, 57 percent of new iPhone owners surveyed in December said they got an iPhone 4S.

Breaking the data down into monthly surveys of people who had acquired a new smartphone over the previous three months, that iPhone 4S effect resulted in iOS nearly matching Android in share of recent smartphone acquirers as of December.

Given the three-month windows of time covered by each monthly survey, December's data would include at least several weeks of time prior to the iPhone 4S launch. Data for January could thus show even stronger performance by Apple, although some of the early iPhone 4S adopters may fall out of the January sample due to the three-month window having closed, depending on when during the month the data is collected.

AllThingsD reports on new research from Consumer Intelligence Research Partners (CIRP) analyzing the impact of the secondary market for the iPhone, the portion of used iPhones that are resold or given away when users upgrade to the latest models. The survey looked at customers purchasing new iPhones beginning with the iPhone 4S launch last October, finding that 53% of those users had returned their old phones to the secondary market.

Of those old phones being put back onto the secondary market, the survey found that 49% were older iPhones, while 21% were BlackBerry smartphones and 15% were Android devices. Approximately two-thirds of those devices returned to the market were given away, with the remaining third having been sold.


Breakdown of old devices reentering secondary market following new iPhone purchases
According to the survey, 87% of those who sold or gave away their old iPhones expected the recipients to activate them for use, which CIRP estimates as representing 11% of carrier activations since last October. That number represents a boon for carriers, who do not have to pay subsidies to Apple on the used devices.

The research firm believes that, for every used iPhone that carriers activate, they save around $400. In the fourth quarter of 2011 alone, CIRP figures that secondary-market activations saved AT&T and Verizon between $400 million and $800 million in subsidy costs.

And while the strong market for used iPhones may seem like a detriment to Apple given that those users may be purchasing a used device offering no revenue for Apple rather than a new one, CIRP suggests that those low-priced used handsets are a common way to introduce new users to the iPhone ecosystem. That introduction then sets the users up for future purchases of new iPhones and other Apple products.

“It hurts Apple because it creates competition for new iPhones, which we see in the relatively modest sales of reduced-price iPhone 4 and free iPhone 3G units. But it also benefits the company because used iPhone customers aspire to own the newest and best iPhone, so they are likely future new phone customers. In fact, they are likely new entrants to the Apple ecosystem, who otherwise would not have found a way in.”

Beyond future hardware sales, the used iPhone market also increases the user base and market for apps and other iTunes Store content, with the device's able to serve more good than if they had been discarded or forgotten in a drawer.

Last August, Apple expanded its recycling program in the United States to allow customers to turn in their used iPhones and iPads for Apple gift cards.


As noted by Macworld UK and Macerkopf.de [Google translation], Apple has once again expanded its recycling efforts by bringing a similar initiative to the UK, France, and Germany. But rather than offering payment in the form of an Apple gift card, the program in these countries offers users cash deposited into their bank accounts.

With the Reuse and Recycling Programme, you could turn your old equipment into a brand-new Mac, iPod, iPhone or iPad.

Whether it’s an iPhone, iPad, Mac or PC computer, working or not, we’ll take it and determine if it qualifies for reuse and has a monetary value. If it does, the amount will be credited directly into your bank account. If it doesn’t, you can recycle it responsibly through one of our free recycling programs.

The program, offered in conjunction with the German arm of electronics recycler Dataserv, builds upon Apple's existing programs for recycling Macs, PCs, batteries, iPods, and mobile phones.

Apple supports recycling efforts in a number of other countries through third-party organizations with details for each region of the globe available from Apple's main recycling program pages.

The Jakarta Globe reports that Apple's three carrier partners in Singapore are making plans to offer iPhone 4S models lacking cameras, with the move said to be targeting members of the military who are prohibited from bringing camera-equipped phones onto their bases. Carrier M1 even briefly offered camera-less models on its website earlier this week.


"iPhone 4S Non Camera" listing on M1's site (Source: CNET Asia)
The camera-less phones are not, however, an officially-sanctioned product offered by Apple, as the carriers are simply removing the cameras from the standard devices before sale and charging a premium for the service. The modification also voids Apple's warranty on the device.

Following a year-long review, Mindef [the Singapore Defense Ministry] recently issued guidelines to its servicemen on the use of such smartphones.

It is understood that servicemen with these phones must show a certificate to prove that their handsets were modified by any one of the local telcos.

Last September, Mindef spokesman Desmond Tan told The Straits Times that Mindef and the SAF were 'exploring ways to allow our personnel to use smartphones while maintaining our current security policy on disallowing personal image-capturing devices to be used on Mindef/SAF premises'.

Singapore is of course not alone in its restrictions on camera-enabled phones, as many other governments and private companies place restrictions on such devices in sensitive locations. But the effort by Singapore's carriers appears to be the most official and organized attempt to address those needs for iPhone users.

CNET yesterday reported that Verizon has announced a "hard requirement" that all future smartphones released on the carrier support 4G LTE technology for faster data speeds. That requirement has naturally led to speculation that the carrier has all but confirmed that the iPhone 5 will support LTE, which had already been widely assumed and rumored.

Verizon's statement does, however, come with a minor catch, as there will reportedly be occasional exceptions to the LTE requirement, although those exceptions seem to be planned for the carrier's push-to-talk business.

From now on, nearly every smartphone, wireless hot spot, tablet, and Netbook that Verizon offers will come with LTE guns a-blazing. Yes, Virginia, that includes Windows Phone and BlackBerry devices, too.

There will be the occasional exception, however. For instance, phones on Verizon's push-to-talk network are 3G-only for now, and will remain that way until further notice.

Verizon's clear, unyielding stance on 4G--"a hard requirement," according to Verizon--may partially explain why it has picked up only one Windows Phone so far.

The report notes that Verizon currently leads the pack among U.S. carriers when it comes to LTE deployment, already covering 200 million people in 190 markets with plans to complete the buildout by the end of next year. Unsurprisingly, Verizon is seeking to use its lead in LTE to its advantage by pushing its users onto devices offering the faster speeds.