Even as Apple gets crowned as the new global no.1 Smartphone maker it leaves many wondering as to how the once-mighty Nokia capitulated so meekly, and also so early!
Didn’t Nokia see the Apple hurricane coming its way? Was the Finnish mobile phone giant too occupied with its internal troubles that it got blindsided by the coming external shock (read: Apple iPhone)? Or, did it simply overlook the writings on the wall?
Indeed, Nokia’s shockingly spectacular slide has left many questions than answers in the minds of millions or perhaps billions of mobile phone users and analysts alike across the globe.
According to the latest data from the International Data Corporation (IDC), Apple shipped 20.3 million handsets compared to 16.7 million handsets sold by Nokia, during the second quarter ending June 30, 2011. In fact, not only Apple dislodged Nokia from the no.1 ranking, but even the South Korean electronics major Samsung too made the merry by shipping more handsets than Nokia during the said quarter, thereby further rubbing salt on the Finnish major’s wound. Samsung, riding high on the huge success of its flagship Galaxy S Smartphones, shipped 17.3 million handsets, during the June quarter. “The smartphone market crowned a new leader in 2Q11, and its name is Apple,” said Ramon Llamas, senior research analyst with IDC's Mobile Phone Technology and Trends team. He added, “Ever since the first iPhone launched in 2007, Apple has made market-setting strides in hardware, software, and channel development to grab mindshare and market share.” He further quipped, “Demand has been so strong that even models that have been out for one or two years are still being sought out. With an expected refresh later this year, volumes are set to reach higher levels.”
It was inevitable though. Ever since Apple hit the market with the revolutionary iPhone, which can easily be termed as the most innovative Smartphone the world has seen, it has just raised the bar so high that rivals have struggled to scale it till date. Surprisingly, on its part, instead of cranking up its own innovation machine, Nokia chose to rest on its past laurels and relied on its hunch of challenging rivals in the low-cost yet fast growing emerging markets such as India and China.
Awfully, and perhaps expectedly too, Nokia’s strategy seems to have doomed, at least for now. In the last few of years since iPhone debuted in 2007 while the Finnish phone maker continued to wrestle with its own internal troubles, in the Smartphone segment, top foes Apple and Samsung were attacking its turf in the US and Europe, it has been ceding ground to nimble-footed rivals like Micromax and Gfive in low-end handset segment in its traditionally strongholds like India and China.
While the iconic iPhone has driven fans crazy, the credit for soaring sales also goes to meticulous distribution strategy by Apple as it allowed the maverick Steve Jobs-led firm to lock in subscribers for long term. According to IDC, “Apple’s success can be directly attributed to its distribution (more than 200 carriers in more than 200 countries), increased manufacturing capacity, and solid demand within emerging and developed markets from both consumers and business users.”
It’s not over, yet
However, the battle for the supremacy of the global handset market is far from being over. Given the strong demand for Smartphones worldwide, driven by rising disposable incomes and changing lifestyles fueled by new, much more powerful Smartphones, which double up as an entertainment and gaming device. Nokia still stands a chance to bounce back, provided it comes up with an equally compelling Smartphone model as iPhone or Samsung Galaxy or at least something near to that. “The Smartphone market leadership change signifies the parity that comes with a fast-growing market such as Smartphones,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker. He added, “There is no runaway leader in the market, which means there could easily be further Top 5 vendor changes to come.”
While no one is writing off Nokia for now, it’s surely celebration time at Apple and for iPhone fans.
Apple: The New Smartphone King
Top Five Worldwide Smartphone Vendors, Shipment Volumes, Market Share, and Year-Over-Year Growth, 2Q11 (shipments in millions)
Vendor | 2Q11 Shipments | 2Q11 Market Share | 2Q10 Shipments | 2Q10 Market Share | 2Q11/2Q10 Change |
Apple | 20.3 | 19.1% | 8.4 | 13.0% | 141.7% |
Samsung | 17.3 | 16.2% | 3.6 | 5.6% | 380.6% |
Nokia | 16.7 | 15.7% | 24.0 | 37.3% | -30.4% |
Research In Motion | 12.4 | 11.6% | 11.2 | 17.4% | 10.7% |
HTC | 11.7 | 11.0% | 4.4 | 6.8% | 165.9% |
Others | 28.1 | 26.4% | 12.8 | 19.9% | 119.5% |
Total | 106.5 | 100.0% | 64.4 | 100.0% | 65.4% |
Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors
(Source: IDC Worldwide Mobile Phone Tracker, August 4, 2011)
Image Source: Apple, Inc
Amit
Chief Editor
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