Ouch! Bad news from Nokia
this week, with the company's smartphone share
falling to 26% in the latest report. That's a shocking fall. Not too
many years ago, Nokia's share overall was pushing 50%, and now, their
overall share has slipped to beneath 30%. We had all ideas that things
would be tough for Nokia in the short-term after their switch to Windows
Phone 7, but this is just brutal. That said, Nokia's Q1 earnings showed
better-than-expected profits, but again, when your marketshare slips
below 30% for the first time in a decade, that doesn't bode well for the
Or does it? Nokia has a new future ahead of them, so paying too much
attention to this number may not be totally wise. During the transition
period, we bet the number slips even more, but the real story will be
what happens after a spate of WP7 Nokia devices hit the consumer market.
And despite lower numbers, Nokia still sold 24 million smartphones in
the period, which is 13% more than in 2010. Overall, they sold 108.5
million devices in Q1, and while we would expect that to slip in the
near term, Nokia seems sure that WP7 products will start to move out to
market in 2012.
Will a major OS transition be enough to revitalize Nokia? Many people
were counting Motorola's mobile division as dead a few years back, and
just look at them now.