The world’s top mobile handset maker is reportedly considering a major managerial shakeup. The Finland-based Nokia is lagging behind rivals such as Apple and Research in Motion in the fast-growing smartphone market. And, in a fresh debacle for the company, its symbian mobile operating system lost out its market leadership to Google’s Android during the December quarter of 2010; Android was launched only two years ago. According to data from US-based research firm, Canalys, worldwide shipments of Android-based smart phones reached 32.9 million versus 31 million smart phones which run on Nokia’s Symbian platform, during Q4 of CY 2010.
The latest rejig is being seen as another desperate attempt by the world’s largest handset maker to protect its eroding market share in key markets such as China and India besides regaining its lead in the mobile o/s market. Last year, the company had initiated a series of steps that included layoffs, cost-restructuring and to top it all the installation of its first ever non-Finnish CEO in Stephen Elop, an ex-Microsoft hand. However, there are yet no signs of things improving up for the Finnish giant with some reports even suggesting that its hold over the inexpensive handset segment too has come under threat from low-cost competitors like Micromax and Karbonn in India and ZTE in China, even as it struggles to find an answer to iPhone. “The N95 was a big hit. Ever since they have struggled,” Reuters quoted Michael Walkley, analyst at Canaccord, as saying. “The new CEO is getting challenged on both ends. They are very much pressured in the low end of the market.”
Nokia’s Slip
Top Five Mobile Phone Vendors, Shipments, and Market Share, Q4 2010
(Units in Millions)
Vendor | 2010 Unit Shipments | 2010 Market Share | 2009 Unit Shipments | 2009 Market Share | Year-over-year Change | ||
Nokia | 123.7 | 30.8% | 126.8 | 37.2% | -2.4% | ||
Samsung | 80.7 | 20.1% | 68.8 | 20.2% | 17.3% | ||
LG Electronics | 30.6 | 7.6% | 33.9 | 10.0% | -9.7% | ||
ZTE | 16.8 | 4.2% | 9.5 | 2.8% | 76.8% | ||
Apple | 16.2 | 4.0% | 8.7 | 2.6% | 86.2% | ||
Others | 133.4 | 33.2% | 92.8 | 27.3% | 43.8% | ||
Total | 401.4 | 100.0% | 340.5 | 100.0% | 17.9% | ||
Source: IDC Worldwide Mobile Phone Tracker, January 28, 2011
As a result, Nokia's market share in India has halved in just few quarters, from 60% to 30%, Reuters said quoting data by global research firm, Gartner. “We remain concerned about market share issues in the low-end due to local competition in emerging markets such as India and Middle East and Africa,” Reuters cited another report by UBS. As per the latest data from IDC, Nokia’s overall unit volume slipped 2.4% in the fourth quarter of 2010, which the Finnish major attributed to the ‘intense competitive’ environment and component shortages.
Given that, skeptics are not too happy as they feel that the former Microsoft veteran who is now entrusted with the challenging task of restoring Nokia’s market supremacy amidst intensifying competition has so far done little to send a strong signal. His only major move has been the appointment of the company’s first-ever chief marketing officer. In contrast, rivals led by Google are fast seizing the opportunities in not just the mobile phone o/s but also emerging segments like the table PC which is being dubbed as the future of personal computing.
But don’t expect Nokia to remain quite for long. Maybe a fight back might be around the corner.
Google topples Nokia
Amy, Lead Editor
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