Monday 1 August 2011

Nokia, still a market leader

According to the latest quarterly report issued by research firm IDC (International Data Corporation), the global mobile phone market grew by 11.3% year over year, as in second quarter of 2011 were delivered, worldwide, 365.4 million units – compared with 328.4 million units shipped in the second quarter of 2010.

But the figures were below predictions of the company, aimed at an increase of 13.3% for Q2 – lower than the growth of 16.8% recorded in 2011.


Sales of classic mobile phones fell for the first time since Q3 of 2009, accounting for 4% less compared to the same period in 2010. This decline is due to the rising popularity enjoyed by smartphone devices in regions such as USA, Japan and Western Europe.

“This trend will greatly affect ‘classic’ producers such as Nokia, which will lose in this segment to low-cost producers, such as MicroMAX, TCL-Alcatel or Huawei”, says Kevin Restivo, senior research analyst at IDC. Analysts of the company added that this trend is not new – sales of smartphones being the engine of growth in this market for the last few quarters.



Nokia still holds the number 1 of the top with 88.5 million units and a market share of 24.2% – but the manufacturer is in a sharp decline, accounting for 20.3% less than in Q2 2010. The only positive sign was recorded on the segment of dual-SIM devices: the company has shipped more than 2.6 million units in Q2. In the long-term, the future of Nokia will be dictated by the company’s ability to sell smartphones with Windows Phone 7 OS, which are expected to reach the market this year. Meanwhile, Nokia is trying to support the volume of deliveries of low-cost mobile phones and devices on the old Symbian platform.

Samsung holds the second position with a market share of 19.8%, registering a double-digit growth from the same quarter of 2010 and increasing at a slightly slower pace than the overall market. Like other suppliers, it is faced with a declining demand for traditional phones, but recovering by the success of Galaxy smartphones based on Android. The difference between Samsung and the market leader continued to shrink, reaching less than 20 million units. Analysts predict continued growth in the second half, which could overthrow Nokia from the first position.

LG Electronics holds third place with 6.8% – thanks to very good sales of Optimus smartphones. However, a combination of factors – including lower demand for regular handsets, the company’s slow pace to launch new smartphones and the pressure from competitors led the company to a decrease by 24% compared to estimates for the current year. If sales of LG will continue to decline, its ranking could be seriously threatened.

Apple remains in fourth position with a market share of 5.6%. The company recorded the highest growth worldwide, despite its “star”, iPhone4, has been on the market for more than a year. Three-digit growth of sales volume has allowed Apple to double its market share compared to the same quarter of last year. Apple’s ability to sell smartphones on the developing markets will dictate the fate of the manufacturer of smartphones in the future.

ZTE occupies fifth position in the rankings. Commonly known as a manufacturer of low-cost mobile phones, the Chinese company was successful on the Android smartphones (Blade and Racer) market, already announcing Libra, Skate and Amigo models for the second half of this year.

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