Friday, October 21, 2011

Nokia Slip Further Behind

There was a time not so long ago when Nokia could do no wrong and they dominated the mobile Market. However, today their market share continues to decline, they have just announced a loss in the third quarter of 151m euros (£132m) from a 322m-euro profit in the same period last year with a 38% drop of smartphone sales than the previous year. Net sales have fallen 13% to 9bn euros and shares have dropped 41% so far this year.

A report by the research firm Gartner claims that in the second quarter Nokia accounted for just over 22% of the smartphone market.

Having turned its back on the Symbian operating system in favour of its own Meebo system it refused to follow the Android route and now has pinned it flag firmly on Windows Phone 7. This may prove a stroke of fortune but is more likely down to the fact that its CEO Mr Elop came from Microsoft.

So the question is whether Microsoft Phone 7 plus Nokia can complete in what is becoming a very narrow market? The Microsoft system has failed to get the real sales when it was offered by HTC and Samsung and without a wide base of manufacturers is unlikely to win on the back of Nokia’s loyal customer base alone. A very close coupling of the two old giants may still prove attractive but it may find itself as a single market offer against Apple , Android and RIM with little to really sustainable differentiation.

Nokia's first device running Windows is expected to be launched in London next week.

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