Nokia Loses Its Mobile Crown

Nokia Corp. (NYSE: NOK) needs this news like a hole in the head: The troubled Finnish giant's mobile phone sales have slumped so dramatically that Samsung Corp. has, for the first time, overtaken it as the world's leading handset vendor.

According to Strategy Analytics Inc. , Samsung shipped 93.5 million handsets during the first quarter of 2012, a year-on-year increase of nearly 36 percent for the South Korean firm.

That quarterly total gave Samsung a 25.4 percent market share, ahead of Nokia's 22.5 percent. Nokia, which had been the market leader since 1998, shipped 82.7 million handsets during the first three months of this year, a year-on-year decline of 24 percent.

Table 1: Global Mobile Handset Shipments & Market Shares Q1 2012
In millions Global shipments Q1 2011 Global shipments Q1 2012 Global market share Q1 2011 Global market share Q1 2012
Samsung 68.9 93.5 19.3% 25.4%
Nokia 108.5 82.7 30.4% 22.5%
Apple 18.6 35.1 5.2% 9.5%
Others 160.4 156.7 45.0% 42.6%
Total 356.4 368.0 100% 100%
Source: Strategy Analytics

Nokia's sales were "squeezed at both ends, as low-end feature phone shipments in emerging markets stalled and high-end Microsoft Lumia smartphones were unable to offset the rapid decline of Nokia's legacy Symbian business," stated Strategy Analytics Executive Director Neil Mawston in a press release. (See What the Nokia Lumia Really Costs, Lumia Software Bug Dims Nokia's US Hopes , Nokia Fires Cheap Shot at Apple and Nokia Unveils Cheaper Lumia.)

Apple achieved its highest ever market share figure thanks to continued demand for the iPhone 4S in Japan and the U.S. and the recent launch of the smartphone in China. (See Apple Earns $11.6B on Q2 iSales.)

Nokia is having a tough time currently, as the recent news reports below show:

— Ray Le Maistre, International Managing Editor, Light Reading

sarahthomas1011 12/5/2012 | 5:34:54 PM
re: Nokia Loses Its Mobile Crown

I wonder how much Samsung was helped by having multiple operating systems or if all its growth came from Android. It also supports Windows Phone and bada. Nokia's only got Windows Phone and what's left of Symbian.

FastCache 12/5/2012 | 5:34:52 PM
re: Nokia Loses Its Mobile Crown

Having risen to be a power house in smartphones and consumer electronics devices one might wonder why Samsung still feels it important to play as a tier 2 player in the mobile infrastructure market.

krishanguru143 12/5/2012 | 5:34:49 PM
re: Nokia Loses Its Mobile Crown

Samsung was helped by Nokia shifting to WP.  The sales will never be there for WP and Elop will be replaced.  His replacement will have a lot of work to do.

Foucs 12/5/2012 | 5:34:49 PM
re: Nokia Loses Its Mobile Crown

I think the most important reason of Nokia falling is that Nokia have no innovation in recent years when functions of handset is updating everyday especially in smart times . Jsut like serveral years ago , Nokia is so glory because all functions of hanset is detail segment in their every handset . but till now , we seldom to see such configuration handset appearing .Thus , the nokia falling is necessary .Later , if Samsung falls in this line , the result is same .

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