Thursday, May 19, 2011

Nokia's handset sales worst since 1997

Research firm Gartner announces  a new fifth summary of data on the mobile phone market in the first quarter. The highlights are that Nokia, which reached its lowest market share since 1997 when there was not even a very important thing nowadays called "smartphone".


According to the company, 427.8 million cell phones (ie non-smartphones, and smartphones) were sold in the period from January to March 2011. There was an increase of 19% in total, compared to the first quarter of 2010.

Nokia sold 107.5 million units alone cell phones. The Finnish continues as the clear leader in this market. The bad news is that its market share dropped 5 percentage points to 25.11%, compared to the same period last year. Additionally, Gartner said that Nokia has reached its lowest market share since 1997.

By analysis of Gartner, Nokia will decrease "aggressively" prices for their products in markets where operators control the sales channels (this includes Brazil). Everything to keep the distribution of handsets running Symbian as their first phones with Windows 7 Phone not released.


Phones sold in the first quarter of 2011 (source: Gartner)
The second-largest cellphone manufacturer is Samsung, with 68.8 million units, giving it 16.1% market share (-1.9 pp.). LG comes in third, with 24.0 million units (5.6%), followed closely by Apple, which accounts for 3.9% of the overall market (13.0 million units sold).

Android leads
When we speak specifically of smartphones, it's no surprise that Android to appear as a leader. In the accounting done by Gartner data are somewhat confused because there are systems (Android and IOS) mixed companies with software vendors (RIM). Anyway, we have the Android in the lead with 36.0%. The growth of Google's system was staggering, since it accounted for only 9.6% of smartphones a year earlier.

Still resisting bravely, Symbian appears in second position with 27.4% of smartphones. IOS Apple is third at 16.8% (and 16.9 million units sold during the period).

For Gartner, the strengthening of the "ecosystem" is fundamental to the success of a platform. "Every time a user downloads a native app for your smartphone or put your data in the cloud service platform, are committing to a specific ecosystem and reducing the chance to exchange it for another platform," said Roberta Cozza, the chief analyst of the company.

In total, we sold 100.7 million smartphones in the first quarter of 2011 worldwide. Not bad.