The Koreans are coming: Nokia still leads Mobile phone market but leadership is gradually being eroded


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Thursday, 19 May 2011
The Mobile phone industry continues to see major changes with new player juggling for position challenging the old guards. Nokia continues to have its head over the water but it is being dragged in by the others as it has failed to transits into new technology.

According to a new report and figures from American company, Gartner it shows that Nokia is living dangerously, and that Sony Ericsson has comfortably found a good place down the leadership board to lay itself to rest.

Finnish Nokia still tops the list, but the dwindling market share probably sends shivers down the spine of observers about Nokia's new leadership.
Nokia itself said its global market share will shrank to 29 percent in 2010. Now Gartner's figures show for the first quarter of this year, Nokia is down 25 percent.

That could be analysed as a large and rapid fall, since so many years ago, Nokia was above 40 percentile in its market share. Looking at it and the past, it could be concluded that Nokia is now down to its 1997 size.

The explanation for Nokia's low performance has to do with the company’s weak strategy for not tapping into the computer phenomenon that attached the mobile phone market. Therefore those who got themselves deep into it moved on while reserved Nokia stagnates.


On the whole, Nokia alone reached over 100 million mobiles devises sold, 108 million was sold in the first quarter of this year, but most are of the older GSM technology, and only 25 percent are 3G and Smartphone handsets.

The company’s cooperation with Microsoft to provide smart phones with the Windows operating system is not expected to bear fruit until next year. The total market for mobile phones grew by 19 percent quarter to quarter, and amounted to 428 million this year.

Korean Samsung appears to be the winner and defended its second place on the leader board and it is on the heels of Nokia with 16 percent of the world market, although the proportion has declined a bit. Korean LG Electronics is third with 5.6 percent, also a decline compared with first quarter 2010.

After the three in the top list are pegged together then the distances between the competitors for fourth to ten places are not too large, which also makes for big swings even further ahead.
Apple is now four, but the company sells, simply a PC-like mobile phone, Iphone.

Then the Canadian RIM and ZTE Chinese and Taiwanese HTC and American Motorola were completely worked out but are now again visible on the top-ten leader board.

Swedish-Japanese Sony Ericsson sold 7.9 million units and is in ninth place with a market share of 1.9 percent, down from 2.7 percent in the first quarter of 2010.

In tenth place is Chinese Huawei which now also makes mobile phones. Huawei competes with Ericsson on the network production and system development side as well.

Operating systems also struggle, but that which largely determines the immediate future, is headed by Google’s Android system with 36 percent of the world market share – a sharp rise from 9.6 percent in 2010.
Nokia's Symbian is your second choice by 27 percent but is supposed to be phased out this year and replaced by Windows and Apple is in third place with 17 percent.
By Team

See report here - Gartner Says 428 Million Mobile Communication Devices Sold Worldwide in First Quarter 2011, a 19 Percent Increase Year-on-Year

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