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IDC: Nokia users will push Windows Phone share above iPhone by 2015

By | March 29, 2011, 8:02am PDT

Summary: It’s no secret that Nokia is expecting, hoping (and probably praying) that all of its Nokia smartphone users will become Windows Phone users in the not-so-distant future. But at least one market-research firm is counting on this happening by 2015.

It’s no secret that Nokia is expecting, hoping (and probably praying) that all of its Nokia smartphone users will become Windows Phone users in the not-so-distant future. But at least one market-research firm is counting on this happening by 2015.

International Data Corp. (IDC) made available some of its latest predictions available in a March 29 press release for its Worldwide Quarterly Mobile Phone Tracker. (Thanks to WinRumors.com for the pointer to the press release.)

It’s not too surprising that IDC is predicting that Android will remain the dominant smartphone OS between now and 2015, growing its current worldwide share from 39.5 percent to 45.4 percent. But IDC is predicting that Microsoft’s Windows Phone OS will come in at No. 2 by 2015, growing from 5.5 percent share this year to 20.9 percent. Meanwhile, IDC claims that iOS will drop from 15.7 percent share, to 15.3 percent share in 2015.

Here’s IDC’s chart:

(click on the chart to enlarge)

So how is Windows Phone OS going to catapult to No. 2 in four years? If you look at IDC’s chart, it will largely happen by picking up almost all the Symbian share, according to IDC. IDC is predicting the 20.9 percent Symbian share will be down to .2 percent by 2015. I’m sure Microsoft is counting on getting a hefty share boost from its $1 billion-plus investment in Nokia, but will the Softies manage to hold onto almost all the Symbian base, as Nokia tries to wean them from Symbian? I’d think, given some Nokia users’ skepticism about the sanity of the deal, more than a few might go Android or iOS.

Four years is an eternity in the smartphone business. Lots of unanticipated things could (and will) happen between now and then. Plus, as we’ve seen with the Microsoft-Yahoo partnership, two vendors’ market shares combined don’t necessarily equal the total of their respective shares. Nonetheless, Nokia has stated in recent financial filings that its ultimate goal is to try to “retain and transition the installed base of approximately 200 million Symbian owners to Nokia Windows Phone smartphones over time.”

What’s your take? Are the IDC analysts overly optimistic, in terms of Windows Phone’s potential gains from the Nokia deal? Or is the Nokia deal Microsoft’s guarantee of relevancy in the smartphone market?

And for the record — I have no idea how anyone can predict (or even guess) what the mobile market will look like four years from now. Even the growing number patent lawsuits among all the different players alone could end up having a significant impact on the players and shares by then (maybe). So remember: Don’t shoot the messenger here. I am not backing IDC’s prediction; I am simply noting it….

More from my ZDNet colleague Larry Dignan:

Four Reasons Why IDC’s 2015 Nokia-Microsoft Predictions Are Bunk

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

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RE: IDC: Nokia users will push Windows Phone share above iPhone by 2015
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Microsoft has a loooong history of partnering with companies only to undercut them..IBM and OS/2(which MS morphed into NT, then 2k, XP, Vista, Windows 7, *..etc etc etc) Novell(which they used to develop Active Directory then cut the legs form under Novell).etc etc. I found it interesting that a former Microsoft exec went to head Nokia and right after that Nokia is not only dumping Symbian but nearly totally shutting down it?s own R&D to bet the farm totally on Microsoft. MS phone systems haven?t been market leaders..they?ve been followers and WP7 is no different. If part 2 of this article is correct MS just bought their way into being able to make their own hardware. If that?s correct Nokia?s market domination days are over.

http://www.emmanuelcomputerconsulting.com/archives/2731
@Hescominsoon: ... IDC thought that tablet market will be about flat with yearly sales like few hundred thousand units per year until 2015.

IDC is as utterly incompetent, ignorant and clueless as any other "research" and "analytical" agency.
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IDC is spreading FUD
Linux Geek Updated - 29th Mar 2011
@denisrs
unless Apple goes out of business, windoze can't increase share.
  • Flagged
@LG: So, let me see if I get this right ... you believe that unless Apple goes out of business, Microsoft, through its own efforts along with its partnership with the world's biggest cellphone OEM & distributor won't be able to win ANY marketshare?

Sorry, but this is perhaps the most deluded thing I've ever seen you post.
It looks to me like they are expecting to get about 3/4 of Symbian's share, since they already started at around 5.5%. I think a 25% defection rate for Nokia sounds realistic.
@Winning Guy
I haven't read their report, but who made the assumption that all the additional WP7 market share is going to come from Symbian?
We could see ... a proprotion of them coming over, but existing Andriod or iOS users could come over to the platform (with some Nokia users going to Andriod or iOS), which seemingly appears as Symbian users going to WP7.
(I.E. What is to say all Andriod & iOS users will keep using their platform?)
" I?d think, given some Nokia users? skepticism about the sanity of the deal, more than a few might go Android or iOS."

You're right about the skepticism. But, you also have to ask why they're not already using Android or iOS. I am very disappointed that Nokia is discontinuing Symbian and going to Microsoft. However, I've never been a fan of Android or especially Apple iOS, so when it's time to re-evaluate phones in 2012/13, then it will definetely be something to think about, but no slam dunk that I'll switch to one of those platforms. And, unlike those that have had a sip of the Apple coolaid, I've always bought my phone based on who has the best hardware and the best features (based on what I'm looking for), and for a long time now that has been nokia (except for the last phone which was a samsung and which I regretted when the phone died after 22 months). And I think right now, based on my wants and needs the Nokia N8 is the best.
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You can also ask....
Economister 29th Mar 2011
@mgrubb@...

why they are not already using WP7 or older. With Nokia going WP7 100%, all bets are off. Nokia's history is largely irrelevant. Virtually all their current users will be up for grabs. They will consider ALL their options. Some will stay and some will go. Trying go guess the ratio is a total crap shoot. Let's just say that they do not own phones running any type of MS SW currently, so it is not at all obvious why that would change.
@Economister - what you forget is that:

The cellphone industry and marketplace is VERY different outside the US
Nokia is far and away the world's biggest handset OEM and distributor but also provides many carrier & billing services in many countries around the world

Make no mistake - a large percentage of Nokia's customers will stay on Nokia operated services and with Nokia's devices. IDC prediction may be a little optimistic, but Windows Phone's marketshare will increase dramatically.
another OS to their arsenal to keep people on Nokia hardware. That could be Android, WebOS, MeeGo, or something else based on Linux. If I were Nokia, I would want those defecting to Android to be able to stay on Nokia hardware.
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@DonnieBoy
we won't here a peep out of you.

Look at all you scared little bunnies, already making excuses - because you're so afraid of MS succeding!

ROTFL!!!
I can only think that IDC makes statements like this to get exposure. Without references to back up the statements there is no credibility. I suppose some people will be happy with the positive words about Windows Phone and that will lead to some earnings opportunities for IDC.
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Through the timescope
Robert Hahn 29th Mar 2011
@curph "Without references to back up the statements there is no credibility."
What are you talking about, "references to back up the statements?" What sort of "references" can there be concerning events that are four years into the future?
Do not expect 'references' from these people. Their business is "precision guesswork," but make no mistake: it IS guesswork for the simple reason that humans do not know the future in advance.
What companies like IDC sell is Corporate CYA memos. The guy who proposes spending $60 million on an R&D project to develop high-speed vibrating sticks puts a slide in his Powerpoint that says, "IDC predicts the market for high-speed vibrating sticks will increase 35.4% annually through 2020." If that doesn't happen, it's not on him... it was IDC's prediction.

Big companies spent tens of thousands per year on these CYA predictions.
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Well said
Economister 29th Mar 2011
@Robert Hahn

The only problem is that truly successful companies do not need "CYA memos" to undertake investments, but I am sure that is not news to you. Did Jobs rely on IDC to go down the music player, video player, smart phone, tablet path? I would be shocked if he did.
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These IDC numbers ignore two huge factors
Johnny Vegas 29th Mar 2011
1) WP will have some as yet unknown killer features unmatched by ios/android in 2015.

2) Android phones will suffer a couple large pwn/botnet takeovers and private data exposures by 2015.

Taking these into account and RIM losing more enterprise share to WP than they're predicting and WP will also be passing android by then as well...
@Johnny Vegas WP7 is going to pass Android? I highly doubt that. In what segment of mobile is MS nothing more than an also-ran? None.
@Hescominsoon
Laptops!
@Wolf_Lodge: NICE wink

@Hescominsoon - don't forget also that it's rumored MS is planning on releasing WinPhone8 in 2012. By 2014, it's likely that WinPhone9 will be out. I'm pretty certain that Microsoft will have learned a lot and learned it well by that time and that WinPhone will be a very serious competitor.

Remember - nothing kicks Microsoft into being deadly-effective better than being the underdog!
I don't see Android will lead in four years. The reason is Nokia, who is capable of making phones with premium quality. I mean you can use a Nokia phone for years as long as you'd like to keep it. This is not the case for other phone manufactorers like SE, Samsung, Moto and etc, whose phones won't last for more than two years. This may sound iratating but it's true. Loaded with a modern phone OS like windows phone 7, Nokia will be the choice of most people. This make wp7 the leading OS in the future.
@UseYourHead .. hahahahaha
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MS gives Nokia the kiss of death
theo_durcan Updated - 29th Mar 2011
Same happened to Palm, once a respected leader in mobile: when they decided to go Win Mobile, they run into oblivion.
Same happened to Silicon Graphics, once a respected leader on high end workstations. They hired a former MS, switched to NT, the rest is history.
Guess what will happens with Nokia...
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MS Doomed By The Desire For Control
auntaru 29th Mar 2011
@theo_durcan

http://pantestmb.blogspot.com/2011/03/nokia-intel-microsoft-qt-meego-webkit.html

There's plenty of talk about how Nokia's embrace of Microsoft's Windows Phone has doomed Nokia. But has Nokia's embrace actually doomed Windows Phone?

Nokia and Microsoft intend to jointly create market-leading mobile products and services designed to offer consumers, operators and developers unrivalled choice and opportunity.
But by creating a special relationship with Microsoft, where Nokia has rights to influence the Windows Phone platform in ways others do not and are unlikely to be able to negotiate, Microsoft has ensured that other phone manufacturers will be cautious about using the same technology rather than a platform like Android where a much more open environment exists. Why would any other manufacturer want to use a platform where they play junior partner to "a broad strategic partnership"?
@auntaru - great questions and it'll be fascinating to see how this all turns out in the end, but ...

... OEM's have little to gain from taking sides. HTC, Samsung, LG, et al. would still be happy to sell several million WinPhone handsets each year if customers want to buy them.

If they choose to drop Windows Phone and move to Android, they're competing for pennies and are having to do a lot of work themselves in OS design, implementation, differentiation and support. That costs a lot of money. In order to drive sales, they'll each try to make their version of Android "better" than their competitors and lock competitors out with OEM-specific features. That will do nothing to ease the fragmentation that is already starting to affect Android.

In the meantime, Microsoft will be focussing on delivering a consistent customer-focussed UXP. Nokia will add features specific to its phones, services and markets. Some of Nokia's improvements will feed back into future WinPhone base updates for other OEM's to enjoy.

That's a powerful story compared to further Android fragmentation.
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It will be below IBM PC share
guihombre 29th Mar 2011
More likely it will be below IBM's share of the PC market by 2015.

How is IBM's once dominant PC market share these days??? It it zero??? How did switching to a commodity Microsoft OS work out for them then? Were they able to successfully keep a premium over the pile 'em high and sell 'em cheap competitors?

if you don't learn from history you are history.
@guihombre - IBM no longer makes PC's. It hasn't since it sold it's hardware division to Lenovo. IBM wisely realized that being in the hardware business is a mug's game that delivers wafer thin margins at considerable risk.

IBM's value and profits are now exceedingly healthy.
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Shoot me instead...
jk_10 Updated - 29th Mar 2011
I back IDC's predict, for the first time. With an exception: Android and Wp7's share should be switched over. As a matter of fact, my opinion is still this: andriod wil disappear in two years.
@jk_10
http://pantestmb.blogspot.com/2011/03/wp7-wtf.html

When Microsoft dropped Windows Mobile they dropped the ball with POST-PC ERA !

WP7 will disappear in two years
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When IDC shows a that a non MS item will be low, they are 100% RIGHT, proof they know what they are talking about!
If they say that it will be above the competition they are 100% wrong, proof they don't know what they are talking about.

You can only go with IDC's numbers when they say bad things about MS!
This is very plausible. There would be no reason for Nokia symbian users to switch to something else. They are in it for the Nokia brand name, their loyalty is there. So if Nokia uses WP7 then you bet these same people will start using WP7 as well. Also, all WP7 are happy with their phones so they will tell, no brag, to others about how great it is. And then by word of mouth more and more people will start using it. WP7 is easily going to be the 2nd most used mobile OS.
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With You On This One.
Whyaylooh Updated - 29th Mar 2011
Apparently, IDC is short for "Ignoring Data Contrary". They've come up with an opinion, and are ignoring anything that indicates that they are likely wrong. (Of course, the same can be said for most ZDNet respondents.)

In this case, they're ignoring fact that Nokia is losing its relevancy as a brand, and has been bleeding market share for a few years now. This isn't just because SymbianOS has grown stagnant compared to the competition, but also because of some really poor executive and marketing decisions Nokia has made in recent years, such as uncompetitive pricing strategies, wishy-washy support of their own next-gen OS projects, and questionable executive hiring choices (though I'm sure bringing Stephen Elop in as CEO did make negotiations with Microsoft go a lot more smoothly).

Will the switch to WP7 stem that flow? It's possible, to an extent. I'd say 50% retention would be an optimistic but not unreasonable guesstimate. The near-complete retention that this is anticipating, however, is optimistic to the point of delusion. And I don't see tons of people switching from Android, iOS nor RIM to Nokias running WP7 to make up for that loss, neither.

Of course, I've been wrong before. And, as a ZDNet respondent, myself, I could very well be inadvertently ignoring some data that indicates that resurgence is in the wings. wink From here, though, I'm just not seeing it.
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Nokia's "feature phones"
Robert Hahn 29th Mar 2011
I'm still not convinced that Nokia intends to migrate its entire product line to WP. The press release announcing the deal also contained news of a new operating structure within Nokia. One division would concentrate on "smart phones," while another would continue with "feature phones." All the talk in the press release about the deal with Microsoft spoke of "smart phones."

Nokia do say that their intent is to eventually move their entire user base to smart phones. But let's face it: that is not a realistic goal by 2015 or even 2020. Many people in this world either cannot afford, or simply do not want, a "smart phone" with a bunch of bells and whistles. Somebody -- and probably still Nokia -- will be selling tens of millions of relatively dumb and cheap 'feature phones' when 2020 rolls around. These are going to be so cheap that their price will not bear the cost of a Windows Phone license... they will be based on something lean, mean, and free.

So I think (1) IDC is way too aggressive in predicting the demise of Symbian, and (2) if Nokia does drop Symbian (to save R&D) they will adopt something else (like Android) for their simple and cheap feature phones, and (3) the people running the feature phone division will be trying like crazy to switch to Android so that they can creep up the feature ladder, and the Executive Committee will let them, just so there's a backup plan in case Windows Phone falls on its face.
http://pantestmb.blogspot.com/2011/03/smartphone-top-brands.html

Windows Phone 7 ecosystem -
eventually will go the way of the Kin & Zune !
Why ? because Microsoft has lost already
a big part of the ECOSYSTEM :
the Windows Mobile developers
who invested a lot of time in C#
Not likely, the Nokia users will either stick with the phones they have or join Android's community.

Start using another Microsoft product? ROFLMAO!
In three years Android has gone from nothing to almost 40%. IDC is predicting its growth is about to stall out, and it will gain only 5% more in the next 4 years. Perhaps IDC's problem is it doesn't understand why Android has been so amazingly successful.
Lots of folks talking smack on here. Truth is no one knows what is going to happen other than what THEY are going to do. I have owned Nokia for the last 4 phones (about 12 years), trying to see if S^3 will stay around and be worth it. Doubt seriously that WP will be what I want (I have no need to play games, connect to an xbox, or do some of the other things WP seems to be good at). Having said that, the market is shaking itself out and my Nokia E71 has 80% of what I want a Smartphone to have so I will probably just sit on the sidelines (I was thinking about Nokia E7, but not in the current environment). WP will have to make some significant strides to make me rethink Android (which has Flash Mobile 10.1).
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Nokia WP7 release no later than 3 months to have success
daniel.pereznet Updated - 29th Mar 2011
What is Nokia waiting for....

Nokia must have devices with WP7 and be released no later than 3 months to have any success.

Compared to Nokia's present devices with Symbian
any other OS looks good. Really, have you seen a Symbian phone lately?

All Nokia has to do, is release a WP7 device and do it soon

If they wait, those Nokia users will be switching to
the next release of whatever smartphone is least expensive and half-way decent.
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Microsoft optimist-tic
brunomac 30th Mar 2011
Hi
I think, there is some like an "source of optimistic spirit" in the IDC forecast, often.. ITs not new

Anyway...making predictions with 4 years of distance is science-fiction....Or at least....just fiction
....I highly doubt this IDC prediction.

I say Nokia is acquired, broken up or folds inside of three years.

They have a damaged, maybe fatally damaged, brand and have been shedding users year over year since around 2007.
The IDC is assuming that somehow all Symbian users today will stay faithful to Nokia. Windows Phone 7 is D.O.A. It's the Zune Phone. I remember all the news articles speculating about the Zune being the iPod killer, now I have to hear the same about WP7 being the iPhone killer.
The users will be brown skinned third world losers from Indonesia-hardly the desirable demographic.
You forgot that microsft has a long history of failiures and fiascos like Windows 98, Vista, Side kick and recent Windown Phone 7 update.

One more Fiasco on a Nokia-Windows phone and Nokia will be back to selling toilet papers.

Microsoft is an active volcano of fiscos and the no one seems to take that into account.
Microsft has a long history of failiures and fiascos like Windows 98, Vista, Side kick and recent Windown Phone 7 update.

One more Fiasco on a Nokia-Windows phone and Nokia will be back to selling toilet papers.

Microsoft is an active volcano of fiscos. The question is not if but when the next fiasco erupts and blows Nokia with it.
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