Is this really the time for Nokia to panic? The Finnish company that dominates the global mobile phone market enjoyed a 43 percent jump in second quarter profits, while unit sales have jumped from 60.8 million in the second quarter of 2005 to 78.4 million in the three month period recently ended. Its market share is now 33.3 percent, from 32.5 percent a year ago, and yet#133;
Nokia faces an ever growing challenge, from Motorola. The US company has enjoyed a 52 percent growth in sales over the last year, and its market shares has risen from 18.1 percent, to a more threatening 22.1 percent.
The company which compiles these statistics, is Strategy Analytics, and according to its Associate Director of the Wireless Device Strategies (WDS) Neil Mawston, “If Motorola can continue this breakneck pace - a stretch, but not totally inconceivable given the strength of their core designs - it would overtake Nokia in the first half of 2007. The stars would need to align for Motorola on additional new products, 3G, and component supply, but this should be a strong warning for Nokia which should feel pressure to more rapidly improve both entry- and mid-tier product offerings in terms of both designs and numbers.”
Also doing well is Sony Ericsson. The company jumped back into fourth position for the first time in 2 years, as demand surged for its Walkman music phones. Chris Ambrosio, Director of the Wireless Device Strategies (WDS) service, added, “Sony Ericsson is another vendor who has achieved both balanced product design and brand relevance with its Walkman products, resulting in record highs for the joint venture in shipments, revenues and profits. The important story for Sony Ericsson is the notable improvements in getting new products out and into channel on time - and profitably. If Sony Ericsson can continue in this area, where it has struggled in the past, the Walkman and Cybershot brands from Sony have legs to provide strong growth well into 2007.”
Change in fashion is always a threat to the status quo. Apple spotted the need for a trendy MP3 player, and in no time the iPod eclipsed Sony’s Walkman, as the number one music player. In the mobile phone world, it’s a similar story. Video and music play back, email, etcetera, thanks to new applications this market is still wide open.
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