John Paczkowski

Recent Posts by John Paczkowski

Nokia’s Grip Slipping in Key Regional Markets

Another interesting tidbit from that Charlie Wolf note I mentioned here yesterday, this one concerning Nokia and the deterioration of its market share in regions where it used to have a stranglehold.

While the company has managed to stabilize its share of the worldwide smartphone market, it has not managed to do that in some regional markets that were once strongholds. In the key Western European region, for example, Nokia’s share fell from 59.4 percent in the June quarter of 2008 to 39.8 percent in June 2010–a decline of nearly 20 33 percent. And in the Asia Pacific market, the company’s share slipped from 74.8 percent in June 2009 to 64.5 percent in June 2010–a decline of more than 10 percent.

That these declines are occurring in markets where Nokia (NOK) is strongest really highlights the crisis the company is facing. Unable to keep pace with the fast-growing smartphone segment, Nokia has been losing share in its core markets to the iPhone, the BlackBerry and Android phones. And the incursion from those devices has only just begun, which doesn’t bode well for Nokia, as Wolf notes.

“Nokia’’s competitive position could deteriorate further,” he writes. “The major Android smartphone manufacturers have only recently invaded Europe. And they’’re taking aim at Asia Pacific and the Rest of World regions, two Nokia strongholds. Moreover, RIM is not far behind Android in this regard. Nokia has vowed to catch up with smartphones running on Symbian 3, the latest version of the Symbian operating system, and MeeGo, a new operating system it’’s developing with Intel. Unfortunately, in an increasing software centric market, Nokia suffers from the fact that the company’’s expertise lies in designing hardware, not software.”