Nokia to lose its smartphone reign

Nokia has had a difficult time recently, but it has now surfaced that analysts from Nomura research firm have predicted that Nokia's mobile division will fall behind Apple and Samsung in terms of both revenue and profit.

The Finnish company has already had a difficult year with share prices dropping significantly, workers not necessarily happy with where the company is going and European carriers becoming disinterested with Nokia models. It comes as no surprise then that some have a grim forecast to publish about Nokia's outlook.

According to Reuters, both Gartner and Canalys research firms also see Nokia's smartphone volumes dropping this year. On the 31st of May, the company abandoned trying to meet key targets which were set several weeks previously, which has in turn raised questions over Stephen Elop's promise to turnaround the suffering company.

It appears as though the deciding factor for how things end up for Nokia will rely on the launch of its Windows Phone 7 series later this year. Given that the company has essentially dedicated all of its resources to Microsoft's platform, there are a lot of uncertainties of how its efforts will be received. Carolina Milanesi, from Gartner, says "If Nokia's new phones are not well received in the third quarter and the Galaxy S2 ramping up, Samsung might overtake them and become the smartphone leader in the third quarter."

For a lot of people over the past ten years, Nokia has been at the forefront of producing mobile phones and later what we've come to know as smartphones. Over time, however, we've seen how our uses of the small gadgets have changed. We no longer use them simply to call someone: we text, we email and we check the weather. This fundamental shift has always for the past few years put Nokia in a difficult position, it's no surprise therefore that we've recently seen the partnership with Microsoft and rumours of a takeover.

Image Credit: allvoices.com

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31 Comments

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The "Nokia problem" is the pre-Elop legacy and not his actually being chairman. The article only points out the actual problems which headed Nokia to this point.

If Nokia switched to Android, abandoned Maemo OS and had some innovative designs... They would be competitive in today's market.

kizzaaa said,
If Nokia switched to Android, abandoned Maemo OS and had some innovative designs... They would be competitive in today's market.

And give up all say in the platform and most importantly throw away all their services including their crown jewel - the mapping solutions from NAVTEQ , for the Google equivalents?

liju said,

And give up all say in the platform and most importantly throw away all their services including their crown jewel - the mapping solutions from NAVTEQ , for the Google equivalents?

Nokia made a mistake selling themselves to Microsoft. They were interested in a venture with Google, but as Google has said : "Microsoft paid more".

What did they expect? They should have dropped the monstrosity that was symbian earlier than they did. They didn't and while moving to WP7 was certainly an improvement, it may have been yet another mistake to choose a less established platform ahead of Android.

KingCrimson said,
Millions like me are waiting for Nokia + WP7 Mango. the dam will burst.

You can't be serious.

WP7 isn't moving very fast from a hardware standpoint, apple and android are destroying it for price performance.

WP7 downfall is there locked OS to hardware like apple, it's funny everyone thinks WP7 with nokia's name on the front of the phone will destroy apple or android's market share not a chance.

Rim maybe, but the other 2 not at all.

Dazog said,

You can't be serious.

WP7 isn't moving very fast from a hardware standpoint, apple and android are destroying it for price performance.

WP7 downfall is there locked OS to hardware like apple, it's funny everyone thinks WP7 with nokia's name on the front of the phone will destroy apple or android's market share not a chance.

Rim maybe, but the other 2 not at all.

Maybe but we'll have to wait and see. I am disappointed in the lack of devices being released but have to agree that once Nokia can get some handsets out with Mango plus some help from a few others, it'll start picking up. In a flooded market, it'll take a little more time to get the same share as the others. They'll do it though. I really think it's that there aren't many (wp7) out there for people to show off or see to get that same thing people did/do with their iPhone's or phones with Android when they first get them.

Dazog said,

You can't be serious.

WP7 isn't moving very fast from a hardware standpoint, apple and android are destroying it for price performance.

WP7 downfall is there locked OS to hardware like apple, it's funny everyone thinks WP7 with nokia's name on the front of the phone will destroy apple or android's market share not a chance.

Rim maybe, but the other 2 not at all.


How does having a "locked OS to hardware" a disadvantage?

day2die said,

How does having a "locked OS to hardware" a disadvantage?

You want to pay 199 on contract for last years screen's and cpu/gpu's?

I have a deal for you.

MS is lagging in that department. Where is there dual core let alone quad core Android will have this year and Apple next.

Why would their smartphone sales volume NOT drop? Anyone who has heard that they will no longer be producing new Symbian phone is not going to purchase anything from their current inventory. It's now obsolete.

Skwerl said,
Why would their smartphone sales volume NOT drop? Anyone who has heard that they will no longer be producing new Symbian phone is not going to purchase anything from their current inventory. It's now obsolete.

Exactly. I am sure many people are just waiting for Nokia's Windows Phones. Why buy Symbian phone when it'll soon be obsolete?

Skwerl said,
... Anyone who has heard that they will no longer be producing new Symbian phone is not going to purchase anything from their current inventory....

Who told you that there will be no new Symbian phones?

day2die said,

Exactly. I am sure many people are just waiting for Nokia's Windows Phones. Why buy Symbian phone when it'll soon be obsolete?

Soon as in 2016?

Hollow.Droid said,
Bring back the 3210/3310 and all will be well again

haha good old times!
new phones don't even have snakes no more.

Sas Center said,

haha good old times!
new phones don't even have snakes no more.

Yup they need to get back to their roots. Like when a vibrating phone was a 3rd party aftermarket add on

"analysts from Nomura research firm have predicted that Nokia's mobile division will fall behind Apple and Samsung in terms of both revenue and profit."

Apple has already passed Nokia in revenue

Apple now tops other handset makers in terms of revenue, according to new estimates.
With big iPhone sales during the quarter, Apple passed mobile giant Nokia in revenue, making it the world's largest handset vendor based on that metric, according to Boston-based Strategy Analytics.

"We estimate Apple's wholesale revenues for its iPhone handset division stood at $11.9 billion in the first quarter of 2011," said Strategy Analytics' Senior Analyst Alex Spektor in a statement, referring to U.S. dollars. "Apple overtook Nokia for the first time, which recorded a lower $9.4 billion of wholesale handset revenues."

http://news.cnet.com/8301-27076_3-20056289-248.html

yowan said,
Nokia is doomed unless WP7 saves it

We europians like Nokia. Only in USA nokia is not in top but in EU its best mobile phone. Nokia N8 much beter than iphone or any android phone.

0veR said,

We europians like Nokia. Only in USA nokia is not in top but in EU its best mobile phone. Nokia N8 much beter than iphone or any android phone.

Symbian much beter than iOS or any Android phone?

Uh no. No resident in the EU thinks that.

seasonic said,

Symbian much beter than iOS or any Android phone?

Uh no. No resident in the EU thinks that.

i hate when people talk for others.. Actually everyone hates it

Billus said,

Seriously? Seriously. *shakes head*


May be not for you but there are people who actually know about all the 3 and prefer Symbian. These are the people who know what Symbian is and what it is capable of, not like the writer of this piece who makes it sound like it is some kind of dumbphone os.

I'm sick of all these Nokia is doomed articles posted here in regular intervals. Never in my time here I've seen a positive article on Nokia, neowin ignores it all and post only the negative articles.

Edited by liju, Jun 14 2011, 4:35am :