Nokia Displaced, Samsung, Apple Change Smartphone Landscape

By Ashok Bindra June 13, 2011

According to a report posted on CNET.com on Monday, Nokia will soon lose its dominance in the smartphone market, as per a study conducted by investment firm Nomura Securities. This study indicates that Nokia may soon lose its dominance to Samsung and Apple.

As reported by CNET.com, the investment firm is expecting Samsung to take the first place by the end of this quarter, followed by Apple in second position. As a result, it will significantly change a landscape that was dominated by Finnish cell phone supplier Nokia for some 14 years.

According to Nomura, the investment firm is forecasting that Samsung will take the No. 1 position in smartphones in the second quarter and that it will extend this lead into the third quarter, wrote CNET.com "This represents a significant turnaround from a 4.8 percent share in 1Q10 to 20.4 percent in Q3 2011," CNET.com quoted the company.

Nomura’s study shows that Apple's smartphone unit share will remain steady at around 17 percent, but Nokia's will drop from its current share of 25 percent to about 16 percent. Going into the future, Nokia will continue to lose market share, predicts Nomura. And could be surpassed by HTC by the end of next year.

Meanwhile, wrote CNET.com, competition and a tough market has prompted Nokia to cut its sales forecast for the second quarter. In addition, the company also recently announced its transition from its own operating system to Windows Phone based on a deal inked with Microsoft.

Although, Nokia is betting on Windows Phone, Nomura analysts don't see Nokia’s  fortunes improving anytime soon, wrote CNET.com.

Since market shares in mobile phones have been swinging a lot in previous years, the investment firm thinks that Nokia will turnaround, but it does not see a product led turnaround. Also, the company sees better opportunities among Asian vendors in particular.

Speaking last week at the Open Mobile Summit, Nomura analyst Richard Windsor sees more competition in the handset arena from Asian Android phone makers.

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Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell

TechZone360 Contributor

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