Nokia Dethroned As Top Phone Maker By Samsung
SternisheFan writes "PCMag's Angela Moscaritolo writes: 'Samsung is expected to account for 29 percent of worldwide cell phone shipments, up from 21 percent in 2011, when it nabbed the No. 2 spot in the market. Meanwhile, Nokia's share this year will drop from 30 percent to 24 percent this year. Nokia had held the top spot in the mobile phone market since 1998.'"
Not just highest sales of smartphones, but of all cell phones.
When they moved from generally useful "multi-tool" phones to relatively functionless whorephone candybars, courtesy of Microsoft-owned executive Mr. "Burning Platform" Elop, market share took a dive. In addition, salespeople couldn't even figure out how to sell them.
That, and it didn't help that their "sold only in a Third World hellhole" N9 phone, which ran Meego Harmattan, has a better sales record than the Windows Phones that were "meant for the First World markets".
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Nokia's share will continue to drop for a while longer. Probably until they rethink their strategy and start producing Android phones. Windows Phone is a dead end.
Really it's a changing demographic that Nokia hasn't kept up with. They sold lots of 'dumbphones' and 'feature phones' in an era now, where consumers want smartphones. They were late to the game, and as a result their behemoth status doesn't help them.
That said, I have a Lumia 920 and really, really like it. OS aside, it takes amazingly good pictures and I can beat a person to death with it and not have to worry about whether it works afterwards. Those also, were my requirements for buying a phone... good camera and durable. I have kids, kind of a necessity.
The price is always right if someone else is paying.
Look at RIM. They are trying to re-invent themselves with a QNX-based platform. In order to deliver that, they have basically abandoned their old platform to existing products and a new low-end phone to try to retain market share in places like Nigeria. Development on existing products has stopped. They know that they can only afford to do one OS and they must do it well.
We've already read about the internal fighting in Nokia around Maemo/Meego. It is fairly obvious that the investment wasn't there to take it forward as a new platform to compete with the iOS/Android bandwagons. It falls into the category of things with good foundations that didn't get a chance and lost momentum, like webOS. (I have an N900, I have a Pre 2 and a Pre 3, I do know what I am writing about).
Elop was right about the burning platform and he was between the Scylla of Android and the Charybdis of Microsoft. Regardless of where he came from, he could see that Taiwan and Korea were already ramping up Android and Nokia would be a me-too. Microsoft offered investment and a different offering. Basically, he knew that he would be screwed by Microsoft but he also knew he would be screwed by Samsung, HTC, LG, and even Asus. So what do you do in the circumstances? You cannot do both because having too many offerings - a long term Nokia failing - leads to excessive support and R&D costs, along with insufficient volume for a given product
Elop isn't a saint, he is a CEO. I am pretty sure that in the same situation anyone who understands the industry, and business in general, would have made a similar decision. It might be of the order of "do I abandon ship in this shark infested water or do I keep pumping and hope I get to Tahiti", but it still looks like a rational decision.
From scarped cliff or quarried stone she cries "A thousand types are gone, I care for nothing, no not one."
They became #1 and got complacent and lazy with only half hearted efforts to push and market anything that wasn't a feature phone and with half finished OS's running on them. They could have been Samsung if they weren't too busy counting their money when Apple brought out the iPhone and had pulled their fingers out and produced a serious competitor.
Latest news from Nokia is that they are in talks to make Windows RT Tablets, the flailing Windows tablet. I think it's pretty clear who Elop represents at this point and it ain't Nokia.
http://www.engadget.com/2012/12/19/nokia-windows-rt-tablet-hints/
So they could, right away built a competitive Android phone, just like every little player is doing, only they can make decent hardware still (well until Elop sells that side to Microsoft for a handful of magic beans, which I think is a given at this point), and Nokia still has its marketing. So they could still turn this Elop mess around.
But not with Elop in charge.
You can pretend Symbian phones are 'feature' phones, they aren't, they're full smartphones. They had the top slot for smart phones until Elop took over. Just not in the US. He was supposed to deliver their US market, instead he took away their world market, sacked the OS side, signed up to Microsoft for a short term wad of cash, destroyed Symbian by announcing its future planned death.
Yet they could just make Android phones and its a booming market they're familiar with. So why don't they? Elop won't let them presumably, or he's got them into a poison pill contract with MS perhaps.
It's such a head scratcher, you can see he's a failure, the numbers are crystal clear, the dumb noobie mistakes he makes, the graphs don't lie, at what point are the board going to eject this idiot before the shareholders eject them???
he could see that Taiwan and Korea were already ramping up Android and Nokia would be a me-too....You cannot do both because having too many offerings - a long term Nokia failing - leads to excessive support and R&D costs
Skipping the waffle. You seem to not have been aware that HTC; Samsung; LG; Dell; ZTE; Alcatel; Fujitsu Toshiba; Acer all have offered windows phones. Its not tied to any one product....those look like Taiwan and Korea manufactures to me. Although the list is getting smaller [HTC looks likely to drop Windows phone] simply because of its massive failure....Oh and it has closed all its factories, and has moved production from Finland to China.
Samsung [Then a quarter the size of Nokia...now Nokia 10th largest smartphone manufacture] Bada; Tizen; Windows ;) and Android, I belive they are kissing ass and taking no prisoners right now.
Looks like an insane decision then however you try and spin it. The fact that is has proved to be stupid just shows how irrational it really was.
Drop? Nokia shares are more than $4 from $1.63 in July.
...and Down from $9 look forward to your dead cat bounce RIM is having one too :). Ironically HTC which rose to prominence on the back of Android is dumping Microsoft, because unlike Android will not support its high-definition phones.
With all the talk about WinRT, Android and IOS - worth noting....
This reminds me of the early PC days, where one hardware manufacturer would look like they would be set to dominate for awhile, then crash and burn, another manufacturer would look like a winner, rinse and repeat. Samsung is looking like the 800 pound gorilla right now, but things could, and probably will, change quickly.
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Just saying that going with Android makes Nokia another "me too" company totally discounts that Noka phones are always beautifully designed and very robust.
The last two nokia phones I've had have terrible software problems but I could not fault the hardware. Where as my experience with HTC phones one had a joystick that broke and my current HD2 has had the USB power connector fail on me.
If they had gone with Android they could have easily competed with Samsung and had a good percentage of the Android smartphone market. The problem is Elop somehow managed to convince people that with Windows Mobile he could restore past glory and be like Apple. Sure they now have nearly have 100% of the Windows Mobile market, but whats that at the moment? 1% of smartphones?
The thing is Elop does n't understand the industry, he came from Microsoft. He's a Microsoft man, the question at the time should have been something like this "We have two available OS options, one has a proven record of being something customers want and the other has failed pretty badly up to now." . Which one would you go with? Sure you will have to compete with Samsung with the same OS, but they're now competing with Apple, Samsung and everyone else with a different OS and failing badly.
Regardless, it's a moot point now but I don't recall anyone at the time saying this was going to end well for Nokia.
I still mostly like Nokia hardware, except for some minor quibbles. Unfortunately it got itself hitched to one platform. The current CEO should get voted out.
http://www.fiercewireless.com/story/nokias-elop-hints-more-lumia-windows-phones-verizon/2012-12-18
Its half off-topic, but I was watching cnbc "Ballmer another Mcicrosoft Fail" http://video.cnbc.com/gallery/?video=3000136311&play=1 and interesting right at the end it Ed Maguire says "ther have been discussions of stephen elop as a successor. ". I spat me coffee.
When that happens, then maybe it really will be the year of the linux on the desktop!
"You can pretend Symbian phones are 'feature' phones, they aren't, they're full smartphones"
A smartphone these days means touchscreen , not just the ability to install apps. You've been able to do that on feature phones for at least 10 years.
You are ware that Symbian not only was full touch-screen, but they outsold iPhones 2-1 before Elop's Memo. A quick look http://smartphones.techcrunch.com/d/z/Symbian
Market share:
2007: 39%
http://www.nytimes.com/2007/10/18/business/worldbusiness/18iht-nokia.4.7948524.html?_r=0
2010: 36.6%
http://www.sramanamitra.com/2010/05/05/nokias-market-share-declines/
Market value:
$115B in 2007, PE 11
$50B in 2010, PE 12.95
$15B now, PE - (loss)
http://www.stock-analysis-on.net/NYSE/Company/Nokia-Corp/Valuation/Ratios#PE
Zune.
When he made that decision, the flaws in the thinking were pointed out then, it's not like he made a *good* decision at the time and somehow it turned out bad, Microsoft already had Windows phones out in the market, it already couldn't sell them. It had failed badly with Zune. It already had a search engine that wasn't winning against Google, it already had a maps system not winning against Google's maps.
I mean, the guy made a bad decision, he was told it was bad, it was demonstrably bad, it turned out bad, and people defend his bad decision based on some imagined *badder* reality.
Displays and phones - that is what Samsung is good at making. Do not stray from this and you will be rarely disappointed.
"But this one goes to 11!"
is that they know how to build a massive international product line from the ground up with minimal expense, and they rarely over-extend themselves. I've known some Korean engineers that worked for them, and the company does not seem to be subject to the same Wall Street pressures that cause so many companies to shoot themselves in the face. If they decide to get into a business, they have a solid plan that they stick to. If they decide not to get into a business, they won't be persuaded no matter what the latest whims of the consumer market would seem to dictate.
I guess I would call them the anti-Sony.
Being #1 isn't some birthright bestowed upon you by God. Once you start taking it for granted and your customers for granted, it's over.
I swear to God...I swear to God! That is NOT how you treat your human!
I'm $orry I was $o $tupid. I know that I am no longer worthy of having $la$hdot po$ting privilege$. I know I cannot truly hope for forgivene$$. I can only hope that my $orry tale will $erve a$ an example for other$.
My Samsung laptops are amazingly good, and I have had a Samsung washer and dryer in a rental unit that were very nice. Also the Samsung microwave works rather well at work. Sadly, you have to use HR's break area to use it. I would say that their product line doesn't stop so simply at displays or phones, but I would definitely say that apple supports their products better if you do get a crappy one.
Disagreeing with you does not make me a troll.
Nokia has been the #1 phone manufacturer. Huh. I must get too much of my news from Slashdot.
(my first phone was a TDMA Nokia and it was a beast - practically unbreakable with good speakers and microphone; how I miss the quality of those days).
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I recently had some Finnish people staying with me and when I mentioned Nokia to them they look rather depressed. Nokia was at one time a real source of pride for the nation and now....well it's just a bit embarrassing. I cheered them up by talking about Linus Torvalds instead :)