Nokia regaining lost market share in global mobile phone market

Phone major Nokia is regaining confidence among phone
consumers across markets.

Nokia shipped 106.6 million phones in Q3 2011 to gain market
share of 27.1 percent as compared to 110.4 million shipped in Q3 2010 with a
market share of 31.6 percent.


The second largest phone maker Samsung is coming closer to
Nokia. Samsung shipped 87.8 million phones in Q3 2011 with market share of 22.3
percent. In Q3 2010, Samsung’s market share was 20.5 percent with shipments of
71.4 million phones, according to IDC.


Nokia’s transition from the Symbian to the Microsoft Windows
Phone operating system as its primary smartphone platform led to a transition.
Overall the Central Europe, Middle East and Africa markets showed strong growth
due in large part to Nokia’s rebound in the regions. Nokia had a very strong Q3
2011 due to feature phone growth. Its smartphone decline continued, however,
but it remained the market leader in the region.


Nokia is betting big on both Windows phone for developed
markets and cost effective Nokia Asha
phones for emerging markets. The Asha mobile phone family includes Nokia Asha
303, 300, 200 and 201. Nokia is pricing Asha model at EUR 65 to 115.


Nokia is targeting
over 50 per cent market share in India on the back of innovative products,
services and content within 2012.

“Our target share should always be more than half of the total market…I
think we would be able to get there in 2012 by focusing on great innovative
products, great delivery and experience at retail points, services and content
integration,” said D Shivakumar, vice president and managing director,
Nokia India.


Nokia reversed a global market share on a sequential basis
last quarter thanks to stronger feature phone sales in key regions as well as
the clearing of inventory backlogs in traditional strongholds, namely China and
Europe, which led to a sharp year-over-year shipment and share decline last


Nokia’s smartphone fortunes could improve in quarters to
come now that it has introduced the Nokia Lumia devices, powered by Windows
Phone 7, to markets where its brand is still relatively strong and in areas
where the company has lost share over the past two years, according to IDC.


Nokia’s global handset shipments edged down 3 percent
annually to 107 million units in Q3 2011. Nokia’s strong sales of its
entry-level dual-SIM models in emerging markets were counterbalanced by weak
demand for its high-end Symbian phones in developed regions. The recent
Microsoft Lumia announcements have come at a good time to help Nokia’s stagnant
smartphone volumes. Hot on Nokia’s heels, second-ranked Samsung continued to
grow and reached an all-time-high marketshare of 23 percent, fuelled by robust
shipments of its high-end Galaxy S2 superphone”  said Neil Mawston, director at
Strategy Analytics.

Samsung registered
double-digit growth compared to the third quarter a year ago and also outpaced
the market. The company’s growth was driven by smartphone sales, such as the
Galaxy S2. Smartphone sales were notably higher in emerging markets including
China. Samsung outpaced the feature phone market as well in terms of growth.


Samsung didn’t close the market share gap on Nokia for the
top mobile phone position, but it remains within striking distance. Q4 2011
will have a different story to tell as Nokia’s Windows phones are out, Apple is
experiencing record sales of iPhone  4S and Samsung and HTC will be
offering more smart phones.


By Baburajan K
[email protected]