Why did Nokia lose the wireless market

Nokia's crisis is worsening

The world's largest cell phone manufacturer Nokia is rapidly losing ground in the cell phone market. According to Gartner, the market share of the Finns was only 22.8 percent in the second quarter. In earlier years, up to 40 percent of all cell phones worldwide came from Nokia.

The key to the decline of Nokia is the advance of computer cell phones, known as smartphones, in which the long-time world market leader has lost touch with rivals such as Apple and Google. Smartphone sales shot up by 74 percent year-on-year to just under 108 million devices, as Gartner calculated. This means that every fourth cell phone currently being delivered is a smartphone. A year ago this proportion was only 17 percent.

Competition in the smartphone market is more a battle of platforms than individual manufacturers. The top position went to the Google operating system Android, which is used by various manufacturers. According to Gartner, Android now has a market share of 43.4 percent - after only 17.2 percent a year ago.

Market share halved

Nokia's Symbian system collapsed from 40.9 to 22.1 percent during this time. In February, the group decided to rely primarily on Microsoft's Windows operating system; the first devices from this partnership could not come onto the market before the end of the year. According to Gartner, smartphones with Microsoft's operating systems recently fell back to a market share of 1.6 percent, after 4.9 percent a year ago.

A clear winner is Apple with its iPhone. The group not only controls the associated iOS operating system, but is also the only device manufacturer for this platform. With the high-priced iPhone, Apple makes billions in profits. In the smartphone market, the share of iOS rose from 14.1 to 18.2 percent. In the Gartner ranking of mobile phone manufacturers, Apple is in fourth place with a market share of 4.6 percent after only 2.4 percent a year ago.

Samsung remained the second largest cell phone manufacturer in the world with a market share of 16.3 percent, followed by LG with 5.7 percent. Both South Korean companies lost some weight in the process. In contrast, the Taiwanese manufacturer HTC advanced from 1.6 to 2.6 percent.

Fully set on Windows 7

The current Gartner figures and poor quarterly results fit the fact that Nokia intends to restart the USA. As North America boss Chris Weber announced to AllThingsD, the Meego-Smarthone N9 should no longer come on the market there. The company wants to take simple devices with the Series 40 operating system (S40) and Symbian smartphones off the market. Weber announced that it would fully rely on devices with Windows Phone 7. Nokia announced the start of a corresponding alliance with Microsoft in February. Nokia closed its online shop in the US at the end of June. Anyone who has since wanted to buy a Finnish device there is referred to Amazon. Most cell phone users buy their devices subsidized by the provider. However, Verizon does not have a Finnish cell phone, AT&T one and T-Mobile USA two in its range. How things will continue with the once undisputed industry leader will be found out at the Nokia World in-house exhibition in London at the end of October.

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