Nokia extends lead in handsets as Motorola struggles

Nokia increased its lead over rival mobile phone vendors during the second quarter, according to research from analyst firm Gartner.

Nokia tightened its grip on the global mobile phone market in the second quarter of this year, taking advantage of a stumble by Motorola and strong demand from emerging markets around the world, a market research study said Thursday.

Motorola was the only one of the top five vendors to lose market share when compared against the second quarter of 2006, despite a strategy of cutting prices to save its second-place ranking, according to figures from analyst Gartner. The company ended up with a 14.6 percent market share, barely ahead of third-place vendor Samsung Electronics with 13.4 percent, followed by Sony Ericsson Mobile Communications with 9 percent and LG Electronics with 6.8 percent.

By contrast, Nokia used its dominant 36.9 percent share of the market to begin selling more-expensive products, such as the N95 it launched in March, a high-end phone with features like built-in GPS (global positioning system), a 5-megapixel camera and a MP3 music player. The company did stumble earlier this month when it issued a massive cell-phone battery recall after reports of overheating and then commit to offering free replacements for up to 46 million batteries.

Overall, the cell-phone market saw sales rise by 17.4 percent to 270.9 million units in the second quarter of 2007, thanks largely to sales growth of 40.7 percent in Asia-Pacific and 24 percent in Latin America. Sales in mature markets were much slower, rising by only 7 percent in North America, 10.3 percent in Japan and 11 percent in Western Europe.

Those trends will probably continue through the third quarter given that Motorola is unlikely to regain its previous market share in the 20 percent range until it makes substantial changes to its product portfolio, according to Carolina Milanesi, Gartner's research director for mobile devices.

Indeed, Motorola laid off 4,000 workers in May and announced a second-quarter loss of US$28 million in July. Executives promised to increase their investment in product development to recapture lost profits.

However, any future forecast for the mobile phone market will include a new player, Apple, which launched its iPhone in the U.S. on June 29, just two days before the end of the second quarter. Because of that timing, Apple made very little impact on industry rankings for the period. That picture could change fast in the second half of 2007, since the iPhone saw strong sales in the U.S. and could launch in Europe as early as September, Milanesi said.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ben Ames

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?