Nokia has been struggling in its smartphone space especially because of increased competition by Samsung and apple. In addition Nokia has been downgraded by the credit agencies to –BB. Having said that people still think that Nokia has the potential to face this increased competition in a way that will enable them to maintain strong market share. Some believe that it would be inevitable for the company to being taken over by a competitor since the stock price is so depressed and it could be a bargain. Other say it could only go north from here… its getting more and more interesting out there in the competitive landscape of the smartphone world.
2 comments:
It's actually a very valid topic, and one that we all forget about because the US is so focused on iPhones and Blackberrys and tablets, etc... But outside of this country, especially in developing nations, people still use and love their little Nokia handsets. A good friend of mine, who has always used a Nokia, recently sent me an email that had the "sent from my iPhone" signature at the bottom. When I responded with surprise, "you have an iPhone??" He calmly wrote back, "yes, but I usually leave it at home. I still take my little Nokia everywhere." Maybe there is rebellion (though small scale) to the smart phone craze? Or maybe some people long for a simpler time? I'm not turning back anytime soon, but I'm not sure Nokia is down for the count just yet...
I do agree with this comment and I think Nokia is losing revenue and Market share.
Nokia's revenue in 2008: $74,668.00Nokia's revenue in 2009:$57,332.00
Nokia's revenue in 2010:$56,366.00
Nokia's revenue in 2011:$53,762.00 Nokia's revenue in 2012:$37,873.00
The smart phone market account for 70% of the all US handsets. The leading factor when purchasing a smart phone is first its OS ( highest rank (8 on a scale of 10) then its apps. Selections of Apps which is tied to the OS is usually the number two consideration.
Currently Android has the biggest market share in US with 31% ( and 60% globally) followed by iphone at 30% In the US and 20% globally, RIM at 23% in the US ( with biggest shrinkage) and Microsoft at 13% in the US.
Based on the two above studies, unless Nokia changes its OS from Windows to Android, it doesn't seem to me that Nokia could ever capture market share in the smart phone business.
Post a Comment