Nokia’s Reign of Smartphone World Comes to an End

nokia1The spring of change in the Middle East appears to have followed through in the smartphone arena, according to Japanese market analysis firm Nomura. The 15 year reign of Nokia seems to be on its last legs, as sales forecasts predict it being dethroned in worrying fashion.

According to the numbers crunched by Nomura, Samsung will become the world’s largest smartphone maker in the coming months, followed by the unlikeliest of corporations, Apple.

It was in 1996 that the Finnish cellphone manufacturer introduced the Communicator series and created a new breed of mobile devices. In the decade and a half since, several high profile handsets have graced the palms of business and personal consumers worldwide.

Recognized as a Scandinavian icon, Nokia’s brand and products have offered customers a sense of security and quality, pushing the company’s value close to USD 200 billion.

However, rigidity and lack of radical innovation appears to have thrown a spanner in its dominant market share. Most analysts have long attributed the lengthy delays in updating its legacy OS as one of the key reasons behind the consumer’s losing interest in smartphone offerings by Nokia. While a device here or there has helped retained a loyal following, the arrival of strong competition from Asian manufacturers with lower costs has resulted in a losing battle for the long-term.

Apple’s entry to the smartphone market is recognized as an evolution of the industry, with the iPhone breaking sales records, setting benchmarks and prompting responses from various market players, as well as technology heavyweights Google and Microsoft.

But Nokia’s inability to respond in kind to the new rules of the playground have plunged the company’s fortunes, to the point that it merged its cellular segment with Microsoft for some much needed support. While this merger is not all bad, the key question that arises is if the action is a little too late, as no product has graced the market yet.

Samsung and HTC have used the economics of scale and understanding of the growing Asian markets to their advantage by evolving their products in shorter lifecycles. The latter company has reported outstanding growth in sales, utilizing the power of Android to push for a larger market share.

Samsung, on the other hand, has evolved on all fronts, with consistently reaching or surpassing the high expectations of consumers. According to Korean market analysts, the Samsung Galaxy S II smartphone has outsold its Apple counterpart in early sales within the country.

Of course, the number is not a clean comparison as the former is available on several carriers while the iPhone is available through one service provider only.

While kingship in the low-end region of the cellphone market is still with Nokia, and it remains that largest handset manufacturer overall, even these numbers are under threat from competitors, which now include several small regional manufacturers utilizing Chinese labor and parts to offer cheap alternatives.

To see an electronics giant take top spot in the smartphone market is not at all surprising; but to see an icon toppled by a newcomer within 6 years of market entry is amazing.

    • Owning and Android Phone & an Android Tablet I would never suggest Android to Nokia, never.

        • Well, this Android mania craze will too come to an end soon by 2013. Android is just a piece of cheap **** and i hate it because of its too outdated STYLE/Looks and its buggy os. (yes i own SAMSUNG TAB 10.1) and it crashes as soon i open 4-5 FLASH based websites in browser tabs.

          Symbian itself is outdated now, due to lack of improvements in Style/Design of the OS.

          Looking forward to WINDOWS PHONE 7.5. Though WP7 will not be a huge success unless they bring in Real cool APPS like iOS. Currently i love iOS for its vast availability of APPS in almost every genre.

          • LOL dude your problem is the version or rather customization of the OS. The OS itself is not the issue here. I have been using a customized rom on HTC HD2 which is a windows phone but a cooked Android 2.2 rom works fine on it. No glitches, no hiccups or issues what so ever!

            Same goes for the tablets that are coming out with honeycomb or Android 2.3. Reading your problem, it simply seems to be an issue with the memory allocation of your tablet. If 2 windows or 3 work fine why do want to open 5 :). Once again, these little hiccups are not always the fault of the OS.

            Remember the blue screen error in windows that used to appear, ppl blamed it on the OS while the actual issue was the hardware slots. All you had to do was change the slots of your hardware and it would go away. HAfeez center walay kehtay thay IC tild ho gaye hein aur 500 rupay thug letay thay sahi kernay kay :D

  • An Update for this Article:

    Yesterday Nokia won a long standing sued over Apple over patent settlement and Apple agreed to pay royalties to Nokia and accepting that many ‘innovative’ features of Apple were actually patented well before Apple start working.

    And I was reading another article where they said that Android might be the other target who should or will be paying to Nokia

  • Nokia is going to release windows phone with the Microsoft partnership, most probably in the 4th quarter of this year or in 1st quarter of next year for sure. I guess it is too late for nokia to catch the smart phone race now, moreover nokia will support Symbian OS till 2016, while Samsung and Sony Ericsson already left Symbian. Actually , Nokia is confused between Meego and WP7, I dnt know y Nokia is hesitating to manufacture Android smart phones.

  • LOLx

    Whos saying that Nokia is out of th SP Market
    You people are just out of bounds….

    Nokia was, is and will be pioneer due ti its simple GUI
    Ask urself guys which company is a more understanding you other than Nokia…

    Nokia is introducing Win7 Mobiles this year with joint collaboration of Microsoft

    Let them come out and see the tide rising again…

  • There were rumors that Microsoft bought Nokia for 16Billion dollars and that seems to be quite obvious.

    Android has taken a big chunk of Market Share from iOS too. Let’s see if WM7 can make it into the race with Nokia’s horse… I personly iked WM7 though but let’s see how they deal with iOS’s AppStore and Androide’s MarketPlace with thousands and thousands of apps..

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