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Nokia Fails to Match GSM Handset Market Growth
Feb 20, 2007
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Nokia’s market share in the GSM handset market in terms of units sold has come off its highs at 78-80 percent in end December 2005 to around 70 percent at the end of December 2006. In the same period, Motorola has gained from 5 percent to 15 percent while Sony Ericsson has gained to around 8 percent, according to ORG-GFK figures. The other players in the handsets segment include Samsung, LG, Philips, Panasonic, Bird, Sagem, and Benq, according to The Economic Times.

Nokia has for long dominated the handsets segment and this is probably among the few industry segments where the market leader has had such a huge market share.

According to The Economic Times, with 5-6 million subscribers being added every month, handset companies are seeing rapid growth and with the pie growing each manufacturer is trying to find its own market segment. Motorola, which was down at almost 2 percent market share in August-September 05, has grown almost 10 times since then on a very small base.

Sources said Nokia sales boomed in the first half of 2006 and it gained market share. The subsequent dip in market share may not be a huge worry for Nokia as its own volumes have grown at a healthy rate and it may stay away from competing at unprofitable prices. Industry watchers predict that Nokia market share may stabilize at around 70-72 percent.

 

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