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Obviously, Smartphone Shipments Exceeded PC Sales in 2011

Feb. 6, 2012 Paul Thurrott | Windows IT Pro

Market researchers from Canalys this week announced that overall sales of smartphone handsets exceeded those of PCs in calendar year 2011. But the firm's numbers artificially amplify PC sales by including sales of tablet devices and don't correspond at all with numbers from other researchers.

"Smartphone shipments overtaking those of client PCs should be seen as a significant milestone," said Canalys VP and principal analyst Chris Jones. "In the space of a few years, smartphones have grown from being a niche product segment at the high end of the mobile phone market to becoming a truly mass-market proposition. The greater availability of smartphones at lower price points has helped tremendously, but there has been a driving trend of increasing consumer appetite for Internet browsing, content consumption, and engaging with apps and services on mobile devices."

According to Canalys, hardware makers shipped 488 million smartphones during 2011, compared with 415 million PCs. But Canalys' numbers are off in some obvious ways. First, they're artificially inflated because the firm spuriously includes tablet devices in the PC figure. Take out the 63 million tablets sold in the year, and the total number of PCs shipped goes to 352 million units, the figure that Gartner also reports.

Nothing can hide the fact that smartphones are now far more popular than PCs. It's not even close.

And, yes, it's fair to claim that smartphones, tablet devices, and PCs can perhaps soon be combined into a single market category called "personal computing devices." Why Canalys combines smartphones and PCs, and not smartphones and tablets, or all three, is unclear. For now, however, I'd argue that these categories—smartphones, tablets, and PCs—are three separate product types and should be measured separately.

Second, Canalys massages its numbers in ways I find dishonest. It claims that Apple somehow edged out Samsung as the number-one maker of smartphones for 2011, the only time I've seen such a claim. But it does so by not crediting Samsung with the sales of some of its devices, the Nexus S and Galaxy Nexus; these are instead credited to "Google."

Looking at the share breakdowns for the markets for smartphones, tablets, and PCs separately, the Canalys numbers start to make a bit more sense. In smartphones, Android was number one in 2011 by far, with 52 percent of the market, followed by iOS (23 percent) and Symbian (12 percent). Total tablet sales were about 15 percent the size of the actual PC market. And Apple's iPad accounted for roughly 60 percent of overall tablet sales, with Android devices once again making big gains.

Discuss this Article 32

mkroehler
on Feb 6, 2012
Except for the first tr*ll, I think most of the comments here are valid. As is often the case, it's simply a matter of perspective. For the consumer, I have little doubt that, with this economy, many consumers are more likely to spend their dollars on devices that they'll use several times a day for what they view as "productivity" - texting, games, even the occasional phone call - than on a PC. For many consumers, the PC offers more power and functionality than they need. In the business space, the exact opposite is true. While most folks can get a portion of their work done via phone, they are dead in the water without their PC. And, while a tablet may work in certain circumstances and industries, the vast majority of business "productivity" - something other than angry birds or cut the rope - requires the power of a PC. Since the business market is at a standstill (again, thanks to the economy), the results are not the least bit surprising. The only real surprise is how the numbers have been skewed...
infiniteloop
on Feb 7, 2012
@Meh: Our CEO is ultimatelyresponsible for every decision made in the company. Isn't yours?
mkroehler
on Feb 6, 2012
Other than infinitep**p (troll), I think most of the comments here are valid. As is often the case, it's simply a matter of perspective. For the consumer, I have little doubt that, with this economy, many consumers are more likely to spend their dollars on devices that they'll use several times a day for what they view as "productivity" - texting, games, even the occasional phone call - than on a PC. For many consumers, the PC offers more power and functionality than they need. In the business space, the exact opposite is true. While most folks can get a portion of their work done via phone, they are dead in the water without their PC. And, while a tablet may work in certain circumstances and industries, the vast majority of business "productivity" - something other than angry birds or cut the rope - requires the power of a PC. Since the business market is at a standstill (again, thanks to the economy), the results are not the least bit surprising. The only real surprise is how the numbers have been skewed...
mkroehler
on Feb 6, 2012
Other than infinitepoop (troll), I think most of the comments here are valid. As is often the case, it's simply a matter of perspective. For the consumer, I have little doubt that, with this economy, many consumers are more likely to spend their dollars on devices that they'll use several times a day for what they view as "productivity" - texting, games, even the occasional phone call - than on a PC. For many consumers, the PC offers more power and functionality than they need. In the business space, the exact opposite is true. While most folks can get a portion of their work done via phone, they are dead in the water without their PC. And, while a tablet may work in certain circumstances and industries, the vast majority of business "productivity" - something other than angry birds or cut the rope - requires the power of a PC. Since the business market is at a standstill (again, thanks to the economy), the results are not the least bit surprising. The only real surprise is how the numbers have been skewed...
mkroehler
on Feb 6, 2012
Except for the first two posts, I think most of the comments here are valid. As is often the case, it's simply a matter of perspective. For the consumer, I have little doubt that, with this economy, many consumers are more likely to spend their dollars on devices that they'll use several times a day for what they view as "productivity" - texting, games, even the occasional phone call - than on a PC. For many consumers, the PC offers more power and functionality than they need. In the business space, the exact opposite is true. While most folks can get a portion of their work done via phone, they are dead in the water without their PC. And, while a tablet may work in certain circumstances and industries, the vast majority of business "productivity" - something other than angry birds or cut the rope - requires the power of a PC. Since the business market is at a standstill (again, thanks to the economy), the results are not the least bit surprising. The only real surprise is how the numbers have been skewed...
jersey72
on Feb 7, 2012
"...more than adequate..." There's a ringing endorsement! I'm ditching my laptop today!
mkroehler
on Feb 6, 2012
Except for the Apple troll (infinitepoop), I think most of the comments here are valid. As is often the case, it's simply a matter of perspective. For the consumer, I have little doubt that, with this economy, many consumers are more likely to spend their dollars on devices that they'll use several times a day for what they view as "productivity" - texting, games, even the occasional phone call - than on a PC. For many consumers, the PC offers more power and functionality than they need. In the business space, the exact opposite is true. While most folks can get a portion of their work done via phone, they are dead in the water without their PC. And, while a tablet may work in certain circumstances and industries, the vast majority of business "productivity" - something other than angry birds or cut the rope - requires the power of a PC. Since the business market is at a standstill (again, thanks to the economy), the results are not the least bit surprising. The only real surprise is how the numbers have been skewed...
jersey72
on Feb 7, 2012
@R- Sacrilege! The future is tablets created by Apple!! Don't you know that?!?! You need a forward looking CEO. @infiniteloop- Every good CEO I've ever worked with has known better than to micromanage, but instead to surround himself with people he trusts to make good decisions so he's free to focus on the direction of the corporation. I'd be concerned about any medium+ sized (and even many small) corporation where the CEO is deciding what systems the sales team should be using.
jersey72
on Feb 7, 2012
And a CEO making tech decisions. Interesting...
argraphics
on Feb 6, 2012
My Wife who only does Groupon/Web surf/email/ Crap like that is happy with her iPad and her 2 year old Dell laptop is now collecting dust in a closet somewhere... I think shes a perfect example of the majority of PC buyers in the consumer market I could be wrong.
chuckb84
on Feb 6, 2012
"Obviously, Smart Phone Shipments Exceeded PC Sales in 2011" Good points about Canalys numbers vs. Gartner. The whole issue of "categories" for these devices is clearly in flux and there is not a universally agree schema for it. Paul reaches the right conclusion: CLEARLY smartphones outsold PCs. That trend is only going to increase. I agree that is it is a dubious claim that Apple sold more smartphones than Samsung. It was virtually a tie, so close that which company "won" is irrelevant. They both sold a LOT of smartphones. But the most interesting thing in this article is what is absent: The word "Microsoft" does not even appear.
infiniteloop
on Feb 7, 2012
@Meh: He also had the foresight not to get the company involved with this mess. http://www.theregister.co.uk/2012/02/07/google_android_cdma/
infiniteloop
on Feb 6, 2012
@R: Our entire sales team have ditched their laptops for iPads and their blackberries for iPhones. But then, we have a very forward looking CEO.
BallmerGates
on Feb 6, 2012
More and more, traditional Windows PCs are becoming "trucks" as Steve Jobs described -- a small niche relegated to the workplace for very specific tasks. That's why PC sales are down (though oddly, Mac sales are surging). For consumers by in large, post-PC devices whether smartphones or tablets are good enough. Microsoft has no foothold in these markets.
jersey72
on Feb 6, 2012
Honestly there's nothing in this article nor the numbers. Cell phones have outsold PCs for how long now? The number is driven by, more than anything, the simple fact that people are moving from non-smart phones to smart phones. Anyone who thinks a smart phone could replace a PC (or Mac) is delusional at best. A tablet can only do that in certain scenarios.
infiniteloop
on Feb 7, 2012
@Meh: The decision wasn't his. But he does not sign off any major decision he isn't comfortable with. It's called responsibility. And is why, as a company, even in this economy, are extremely successful.
scottm99999
on Feb 7, 2012
@infiniteloop, Every business has different needs & meets them differently. In their current incarnation, tablets won't work for us.
mkroehler
on Feb 6, 2012
Except for the first tr*ll, I think most of the comments here are valid. As is often the case, it's simply a matter of perspective. For the consumer, I have little doubt that, with this economy, many consumers are more likely to spend their dollars on devices that they'll use several times a day for what they view as "productivity" - texting, games, even the occasional phone call - than on a PC. For many consumers, the PC offers more power and functionality than they need. In the business space, the exact opposite is true. While most folks can get a portion of their work done via phone, they are dead in the water without their PC. And, while a tablet may work in certain circumstances and industries, the vast majority of business "productivity" - something other than angry birds or cut the rope - requires the power of a PC. Since the business market is at a standstill (again, thanks to the economy), the results are not the least bit surprising. The only real surprise is how the numbers have been skewed...
mkroehler
on Feb 6, 2012
Except for the first tr*ll, I think most of the comments here are valid. As is often the case, it's simply a matter of perspective. For the consumer, I have little doubt that, with this economy, many consumers are more likely to spend their dollars on devices that they'll use several times a day for what they view as "productivity" - texting, games, even the occasional phone call - than on a PC. For many consumers, the PC offers more power and functionality than they need. In the business space, the exact opposite is true. While most folks can get a portion of their work done via phone, they are dead in the water without their PC. And, while a tablet may work in certain circumstances and industries, the vast majority of business "productivity" - something other than angry birds or cut the rope - requires the power of a PC. Since the business market is at a standstill (again, thanks to the economy), the results are not the least bit surprising. The only real surprise is how the numbers have been skewed...
mkroehler
on Feb 6, 2012
Other than infinitep**p, I think most of the comments here are valid. As is often the case, it's simply a matter of perspective. For the consumer, I have little doubt that, with this economy, many consumers are more likely to spend their dollars on devices that they'll use several times a day for what they view as "productivity" - texting, games, even the occasional phone call - than on a PC. For many consumers, the PC offers more power and functionality than they need. In the business space, the exact opposite is true. While most folks can get a portion of their work done via phone, they are dead in the water without their PC. And, while a tablet may work in certain circumstances and industries, the vast majority of business "productivity" - something other than angry birds or cut the rope - requires the power of a PC. Since the business market is at a standstill (again, thanks to the economy), the results are not the least bit surprising. The only real surprise is how the numbers have been skewed...
hawg16
on Feb 7, 2012
"Our entire sales team have ditched their laptops for iPads and their blackberries for iPhones. But then, we have a very forward looking CEO." Sales teams, while important, do not put their computing devices through anywhere near the same amount of work that a GIS person would (for example). Of course, if you had any awareness of anyone aside from yourself, you would have thought of that. @R & Meh You guys are wasting your time. The kool-aid has been drunk and the indoctrination of infiniteloop is complete. Rational words and sound arguments will no longer work. The best part is now that I've accepted that he truly is a fanboy, I can look at his posts, sit back and laugh. Jump all over Paul for being a Microsoft shill all you want, infiniteloop, but you are exactly the same as him--if not worse--for Apple. I look forward to your stunning (or is it stunned?) reply.
MSTAYLOR
on Feb 6, 2012
Here is another breakdown of the smartphone numbers - http://blogs.barrons.com/techtraderdaily/2012/02/06/apple-npd-says-4s-most-popular-u-s-smartphone-in-q4/?mod=yahoobarrons Obviously, Microsoft is not mentioned here either. Soom people say that spells the doom of them as a company. My opinion is that currently, people use both computers and smartphones. Each for different tasks. Is that changing? Of course it is. Will it put shutters on any companies doors? I am guessing that it will - RIM will likely be the first, but neither Microsoft or Apple will be one of those companies. Only fools think (or hope) that either will.
infiniteloop
on Feb 8, 2012
@Meh: It's also a small fraction of the price of Microsoft's bloat ware.
infiniteloop
on Feb 6, 2012
Like I said Chuckb84: It's happening. And it's happening without Microsoft.
jersey72
on Feb 6, 2012
Ars- Re-read my post. We're on the same page here. Smart phones are replacing the sales of PCs? Sorry - just don't see it. Tablets? Sure - in certain cases, absolutely. Macs? Absolutely.
infiniteloop
on Feb 6, 2012
So Google's Nexus S and Galaxy Nexus should be accredited to Samsung? Does that mean that the Xbox should be accredited to Flextronics? Or the iPhone accredited to Pegatron? Come on. Surely you're not this desperate to berate the iPhone?
infiniteloop
on Feb 7, 2012
@chuckb84: There's no need for Office on iPad. iWork is a more than adequate and compatible alternative.
infiniteloop
on Feb 6, 2012
It's happening. And it's happening without Microsoft. I smell Fear. This article reeks of it.
argraphics
on Feb 6, 2012
@Meh Its not replacing PC's its replacing Sales/upgrades of PC's and when it comes to MONEY thats whats hurting... As everyone else has said The party has moved on without microsoft....
chuckb84
on Feb 7, 2012
So, no argument that Phones/Tablets address different needs than traditional PCs. However, the distinction is blurry for at least two reasons: First, tablets (and even phones) now have the memory and cpu horsepower of a desktop PC of the mid-90's, at least, and they're getting more powerful all the time. The limitations on the use of these devices is more the screen size and the i/o capability than memory or cpu. They're quite adequate for many business functions. Office doesn't yet run on an iPad, but it could and probably will soon, at least in a slimmed down version. Second, phones and tablets can connect as thin clients to PC "servers". They are already solutions for running Ofifce on an iPad that use this approach. I can easily imagine ArcView or other software running on a PC that serves that info to multiple tablets. Laptops and desktops certainly aren't' going way, but all these devices are going to coexist. The trend over time is towards smaller, more mobile devices with longer battery life and the capability to be used anywhere.
scottm99999
on Feb 6, 2012
@Meh, I agree with you, at least from the enterprise perspective. The smartphone has been a nice addition to the laptops our remote people have, but the tablets we tried just wouldn't cut it. Maybe the PC or Mac can be replaced by a tablet or smartphone if you're talking purely consumer...as argraphics mentions.
mkroehler
on Feb 6, 2012
Except for the first tr*ll, I think most of the comments here are valid. As is often the case, it's simply a matter of perspective. For the consumer, I have little doubt that, with this economy, many consumers are more likely to spend their dollars on devices that they'll use several times a day for what they view as "productivity" - texting, games, even the occasional phone call - than on a PC. For many consumers, the PC offers more power and functionality than they need. In the business space, the exact opposite is true. While most folks can get a portion of their work done via phone, they are dead in the water without their PC. And, while a tablet may work in certain circumstances and industries, the vast majority of business "productivity" - something other than angry birds or cut the rope - requires the power of a PC. Since the business market is at a standstill (again, thanks to the economy), the results are not the least bit surprising. The only real surprise is how the numbers have been skewed...

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