Apple sells more smartphones than Nokia

Apple sells more smartphones than Nokia

Apple has overtaken Nokia in worldwide smartphone volume sales for the first time ever.

According to analyst IDC, Nokia's worldwide smartphone share was around 16% in Q2 2011 – down from 37% a year earlier. This has seen Nokia lose leadership to Apple in the segment for the first time.

In Western Europe, one of the most important regions to Nokia, IDC estimated Nokia's market share to be 24% in the quarter, down from 37% in 2010. On the smartphone segment, IDC estimated Nokia's share is down to 15% from 40% in 2010, which takes the manufacturer down to the third position in the smartphone segmarket, after Apple and Samsung.

IDC estimates Nokia's overall worldwide market share to be 25% in Q2 2011 -  down from 34% a year ago.

The analyst firm said: ‘These disastrous results show how quickly bad a business can become for a company that does not understand the trends ahead of competitors or is too slow to react to those trends, in a such fast moving industry.

’Nokia is bleeding on all fronts. On the smartphone segment its portfolio is not attractive in terms of user experience, ecosystem and even price. Since the company started struggling in 2009, a price differentiation strategy was pursued to keep volumes high, but even this is not working anymore. Consumers can already find better Android devices at lower prices than Nokia smart devices.

'This could even get worse in the next quarters as Apple is rumoured to be launching a cheaper iPhone in September. If this is true, Nokia will continue losing market share until the new platform from Microsoft is fully deployed. From the feature phones perspective, the high volume driver for Nokia, the situation won't get any better.’

IDC said that Nokia will continue to lose market share in both segments, risking its worldwide leadership to Samsung as soon as Q3 this year.

However, in the long-term, IDC expects a ‘less gloomy future’ for Nokia.

It said: ‘The new [Microsoft] platform will play an important role on Nokia's results next year and there are strong signs that it can reverse the current situation.’

Written by Mobile Today
Mobile Today


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