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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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