Nokia falls to No. 2 mobile device maker in its own backyard

Nokia falls to No. 2 mobile device maker in its own backyard

Summary: Nokia is the largest company in Finland as well as the number one mobile device maker in Western Europe for many years. But Nokia must learn to say number No. 2 now.

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Nokia is the largest company in Finland as well as the number one mobile device maker in Western Europe for many years. But Nokia must learn to say number No. 2, since it slipped to that spot on IDC's list of quarterly mobile phone shipments, announced this morning by the analyst firm. The No. 1 post now belongs to rival Samsung, while Apple, RIM and HTC posted strong increases of their own.

Nokia shipped 1.4 million fewer phones in the first quarter of 2011 compared to the same quarter a year earlier. It was the only device manufacturer in the top five to ship fewer phones year over year. The slip caused the company's first quarter market share to drop 10 percent year over year, declining from 32.7 percent to 29.7 percent.

How the rest of the filed fared:

Top Western European Mobile Phone Vendors, Total Shipments and Market Share, 1Q11 (Smartphones and Feature Phones Combined) (Units in Millions)

Vendor 1Q11 Unit Shipments 1Q11 Market Share 1Q10 Unit Shipments 1Q10 Market Share 1Q11/1Q10 Change
1. Samsung 13.2 29.3% 12.5 29.1% 5%
2. Nokia 12.6 27.9% 14.0 32.7% -10%
3. Apple 4.4 9.8% 3.0 6.9% 49%
4. Research in Motion 3.5 7.8% 2.4 5.5% 48%
5. HTC 3.5 7.8% 0.9 2.2% 271%
Others 7.8 17.4% 10.1 23.6% -22%
Total 45.0 100% 42.9 100% 5%
Source: IDC European Quarterly Mobile Phone Tracker, May 2011

Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.

Francisco Jeronimo, European mobile devices research manager, IDC, praised Samsung move to touchscreen technology and Google's Android Operating System.

Samsung was the one understanding the trends first and moving faster. Samsung understood early the trend on touchscreen devices and became the market leader on feature-phones by providing a full range of devices at very competitive prices. On smartphones, Samsung has quickly moved to Android as well as investing in its own platform, Bada. Flexibility and being able to address all market segments have contributed to Samsung's ability to quickly adjust to the market trends. Apple, on the other hand, coming from nowhere in the mobile phone business, capitalized on its strong brand and user-experience innovation. It took years for competitors to come up with devices that could challenge consumers' preference for the iPhone."

Nokia fared poorer still in the smartphone-specific sales battle. Its marketshare dropped 15 percent, from 40.6 percent in Q1 2010 to 19.6 this last quarter. Apple led the field and all other device makers saw tremendous growth.

Top Western European Mobile Phone Vendors, Shipments and Market Share, 1Q11 (Smartphones Only)(Units in Millions)

Vendor 1Q11 Unit Shipments 1Q11 Market Share 1Q10 Unit Shipments 1Q10 Market Share 1Q11/1Q10 Change
1. Apple 4.4 20.8% 3.0 24.6% 49%
2. Nokia 4.2 19.6% 4.9 40.6% -15%
3. Research in Motion 3.5 16.5% 2.4 19.6% 48%
4. HTC 3.5 16.5% 0.9 7.8% 271%
5. Samsung 2.6 12.1% 0.3 2.5% 744%
Others 3.0 14.5% 0.6 4.9% 414%
Total 21.2 100% 12.1 100% 76%
Source: IDC European Quarterly Mobile Phone Tracker, May 2011

Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.

Topics: Hardware, Mobility, Nokia, Samsung, Telcos

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18 comments
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  • Message has been deleted.

    Alan Smithie
    • RE: Nokia falls to No. 2 mobile device maker in its own backyard

      @Alan Smithie

      WP7 is not a mobile device.
      msalzberg
    • Quit being an idiot.

      @Alan Smithie
      Or it it something you can't help?
      Bill Pharaoh
  • Elop is an idiot, see Osborne Effect

    This graph they released is just the dumbest thing ever:
    http://www.engadget.com/2011/02/11/rip-symbian/

    I bought an E7, but when Elop announced they were killing Symbian and replacing it with WP7, I would have been left with a phone that the manufacturers had already announced was to be killed. When I thought he'd fix their R&D so they would make the last few improvements to Symbian needed to compete, I thought it was worth the money, but after he announced it was dead, the phone was worth almost nothing.

    So I sent it back for store credit.

    I mean that is just so dumb, it's the Osborne Effect. Now he has hundreds of programmers working on WP7 to make it good enough for Nokia, instead of hundreds of programmers working on Symbian to add the few missing bits and pieces.

    And Ovi maps launched an amazing 3D map... did anyone notice? Well of course it gets kicked over to MS for everyone to use. So its no longer an advantage to Nokia.

    Dumb dumb dumb dumb.

    If he wanted to release a WP7 phone, then why didn't he simply do it and announce a WP7 phone, instead of killing Symbian and crippling the company before he's even ready to get a handset out of the door.
    guihombre
    • Obviously nobody wants Symbian

      @guihombre
      Only an idiot couldn't see that. Sticking with Symbian would have been the move that not only crippled, but destroyed the company.

      Moving to WP7 was the smart move.
      Bill Pharaoh
      • RE: Nokia falls to No. 2 mobile device maker in its own backyard

        @Bill Pharaoh
        Any proof of that? Seems that even with the release of WP7SOS, Windows mobile is in decline. So maybe going with Android would have been a smarter choice.
        Rick_K
      • Android the smarter choice? I don't think so

        @Rick_K
        <br>Nokia's always been different, better then their competitors. Android would have made them just been another face in the crowd, no different, no better then the next guy.<br><br>From all accounts WP7 OS is much smoother and more stable then Android, so why would a company with the best hardware repuration that Nokia has want to go with a second best OS?<br><br>You, and many other anti-MS people have nothing to lose by choosing the wrong OS for Nokia, so you can all say "Android is the better choice", but at the end of the day, the people who's responsibility to the company (and better insight into anything Nokia related) saw that WP7 is the best choice.<br><br>If Nokia gets to modify the UI, then how does going Android make more sense then going WP7 as the underlying OS? <br>WP7 is the quicker and more stable of the two.
        Bill Pharaoh
      • @Pharaoh, there's 3 problems with that

        The three problems with that are:

        First Symbian *was* the top dog.
        Secondly, it's all just code, there was nothing stopping them writing a portrait keyboard for Symbian for example or adding an animation where needed. It was entirely an internal Nokia management problems.
        Thirdly, he *announced* a product was terminated *before* it even made it to market. That's the Osborne effect. Just plain straight dumb-ness.

        Now you fanbois can talk up WP7 all you like, but he doesn't yet have a WP7 product on the market, let alone a successful one, yet he's already talked down Symbian sales and burnt his bridges to make sure the company can't backtrack if their WP7 fails.
        guihombre
      • RE: Nokia falls to No. 2 mobile device maker in its own backyard

        @Bill Pharaoh
        <i>Nokia's always been different, better then their competitors. Android would have made them just been another face in the crowd, no different, no better then the next guy</i>

        So being yet another WP7SOS phone vendor they are not another face in a smaller crowd? At least with symbian they were unique, now they are just another OEM making phones with someone else?s OS.
        Rick_K
      • RE: Nokia falls to No. 2 mobile device maker in its own backyard

        @Rick_K
        What is WP7SOS? Is that the one you are cooking? See if you can't resist to post negative and flame posts against WP7, you only look cheap, for that matter against any platform. Small advice, hope you will take this criticism in a better way unlike someone who changes handles so frequently.
        Ram U
      • RE: Nokia falls to No. 2 mobile device maker in its own backyard

        @Rama.NET
        It is the acronym for Windows Phone 7 Series Operating System (WP7SOS) Much easier to use the acronym than writing the full name out. Kind of like typing Mac OS X, instead of Macintosh OS X. What is really irritating is there are some one here that flag posts that do not agree with their own opinion.



        @Bill Pharaoh How about growing up a bit, and stop flagging every post I make. Try and dispute what I am saying, rather than trying to censor it.
        Rick_K
  • As a consolation:

    At least Nokia is still selling plenty of Feature phones. In the end that might be all they are able to sell, but at least they will not go out of business. ;)
    Rick_K
    • Message has been deleted.

      Bill Pharaoh
      • Message has been deleted.

        Rick_K
  • My Inner Munchkin

    Just wait until Windows 8! Or maybe it's Windows Phone. I forget. Anyway, a CLOUD SHALL COME OUT OF THE EAST, AND WINDOWS WILL COVER THE LAND!!!

    Do I get my twenty bucks now?
    Robert Hahn
  • RE: Nokia falls to No. 2 mobile device maker in its own backyard

    History always repeat itself for idiots who doesn't want to change. Nokia, as the (former) world leader in mobile phone sales/market share has long been making one of the best phones but bundled with its acquired Symbian OS was the stupidest move ever. They should have thought who pays them their salary; which is obviously the end users who purchase them.

    Smartphones are akin to portable computers and people has nightmarish experience with Microsoft in the computing world who is experiencing steady decline in market share. Google/other open source community shared their codes with end users to make them better in the mindset of what end users want, not proprietary codes like Microsoft that assumes what end users want.

    Profit seeking idiots from the management point of view should have foreseen this and look for alternate move even though we understand that they want to protect their intellectual property. Look at the rise of blackberry from the beginning and how it is slipping down now. Another good example to witness how stupid management think they know it all.

    In the end, whether the managements of Nokia, RIM, and Microsoft like it or not...they are heading toward their doom as end users now know better than the yesteryears.
    kumseng.tkseng@...
  • After receiveing the Kiss of Death from Microsoft

    the writing is in the wall. Same will happens to RIM.
    Same happened to Yahoo, same happened to Palm.
    Anybody see the trend?
    theo_durcan
    • RE: Nokia falls to No. 2 mobile device maker in its own backyard

      @theo_durcan

      Yeap, Microsoft is pure poison.
      Maybe someday, when Apple or Google buys Microsoft the will finally get rid of Ballmer.
      czorrilla