Nokia’s market share falls to 29% in first quarter handset sales

print this

Sales of mobile phone handsets grew by as much as 40% in the three months from January to March this year, relative to 2003 figures. According to a report published by Strategy Analytics, a total of around 153 million handsets were sold during the three-month period.
      The first quarter of 2004 represented a significant decline in the fortunes of market leader Nokia. The Finnish giant’s market share was now measured at 29.2%, as against 34.8% in the first three months of 2003.
      A spokesman for Strategy Analytics noted that even if Nokia is able to bolster its market share through reduced prices, this will only be a short-term solution. Nokia will have to recapture the high ground with its design of phones, particularly in the mid-tier range, and improve its flexibility on the production side, he argued.
     
According to the Financial Times, Nokia has already started an aggressive price competition campaign. The paper claims that the company has cut the prices of several of its models by up to a quarter in order to protect its market share.
      Nokia has not commented in any detail on the price reductions, but a company spokesman has said the company will be pursuing an aggressive policy in order to sustain and improve its market position.
      Global market research and consulting firm Strategy Analytics notes that in particular Motorola has enjoyed spirited growth in Western Europe and in its home market in the United States. Motorola gathered 16.5% of the market in 1Q/2004, up from 14.5% a year ago. The South Korean manufacturer Samsung also made ground, taking 13.1%. Siemens held its own at 8.4%, and the Japanese-Swedish Sony-Ericsson held 5.7% of the handset market.


Links:
  FT: Nokia slashes prices in battle for market share (may require subscription)

Helsingin Sanomat