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Samsung to take Nokia's crown next quarter

26 июля 2011

A poor set of quarterly results from Nokia last week suggest the Finnish vendor could lose its position as handset market leader this quarter, with South Korea's Samsung waiting in the wings to take its crown, IDC noted on Monday.

However, the analyst firm sees a brighter future for Nokia in the longer term, thanks to its partnership with Microsoft and strong support from the operator community.

"Nokia is bleeding on all fronts," IDC analyst Francisco Jeronimo said in a research note, pointing out that that the vendor is suffering in both the high-end smartphone and mass-market feature phone segments of the market.

"Over the next few quarters IDC estimates that Nokia will continue to lose market share in both segments, risking its worldwide leadership to Samsung as soon as Q3 2011," Jeronimo said.

"Samsung's smartphone devices are flying off the shelves in developed markets and its feature phones will continue to challenge Nokia in emerging markets," he added.

According to IDC estimates, Nokia's global handset market share slipped to 25% in calendar Q2, down from 34% a year ago, while its chare of the smartphone market declined to a paltry 16%, having stood at 37% five quarters ago.

Nokia itself reported a 20% on-year decline in total mobile device shipments to 88.5 million, while its smartphone business, hit by the popularity of Apple and Android-powered devices, saw shipments fall 34% to 16.7 million units.

"Apple is rumoured to be launching a cheaper iPhone in September. If this is true, Nokia will continue to lose market share until the new platform from Microsoft is fully deployed," Jeronimo warned.

To make matters worse, the vendor will suffer as the feature phone segment is eroded by the arrival of new, lower-cost smartphones from the likes of Samsung, ZTE and Huawei.

However, IDC sees light at the end of the tunnel for Nokia.

"The new platform will play an important role in Nokia's results next year and there are strong signs that it could reverse the current situation," Jeronimo said.

Jeronimo points out that Microsoft "got the basics right", that is, it created a good user experience with Windows 7. And while the operating system is not yet as strong as its better-established rivals, that will change over the coming quarters as more devices and applications make it to market.

"[In addition], Nokia and Microsoft will be strongly supported by mobile operators," Jeronimo said. "A full range of devices from Nokia, subsidised by operators, will definitely have a positive impact on Nokia's results."

Whether that impact is enough for Nokia to regain its leadership position in the market, should it lose it, remains to be seen though.

Источник: Total Telecom

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