1 INTRODUCTION A. NOKIA A 1.1 COMPANY PROFILE Nokia's history h istory starts in 1865, Due to t o the t he European Euro pean industrialization industrializati on and the growing gro wing consumption of paper and cardboard Nokia soon became successful. Nokia‟s Cable Work's Electronics department started to conduct research into semiconductor technology in the 1960´s. This was the beginning of Nokia‟s journey into telecommunications.
Nokia today is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobile phones, devices and solutions for imaging, games, media and businesses. Nokia provides equipment, solutions and services for network operators and corporations. The company includes four business groups; Mobile Phones; Multimedia; Networks and Enterprise Solutions. In this project I will be focusing only on the mobile Phone business of Nokia in India.
Nokia Corporation engages in the manufacture of mobile devices and mobile networks. It also provides equipment, solutions, and services for network operators, service providers, and corporations. The company operates in four segments: Mobile Phones, Multimedia, Enterprise Solutions, and Networks. The Mobile Phones segment offers mobile phones and devices based on GSM/EDGE, 3G/WCDMA, and CDMA cellular technologies. The Multimedia segment enables to create, access, and share multimedia in the form of advanced mobile multimedia computers and applications with connectivity over multiple technology standards. The Enterprise Solutions segment offers various products and solutions, including enterprise-grade mobile devices, underlying security infrastructure, software, and services for businesses and institutions. The Networks segment provides network infrastructure, communications, and networks service platforms, as well as professional services to operators and service providers. It focuses on the GSM family of radio technologies; networks with Internet Protocol and multi access capabilities; and professional
services. The company also develops mobile WiMAX solutions. Nokia sells its products to operators, distributors, independent retailers, and corporate customers. It has its operations in Europe, the Middle East, Africa, China, the Asia-Pacific, North America, and Latin America. The company was founded in 1865 and is based in Espoo, Finland.
A 1.2 VISION & MISSION Vision: Life Goes Mobile
Ten years ago, Nokia had a vision that seemed revolutionary for the times: Voice Goes Mobile! As history shows, this vision became reality in an incredibly short amount of time. With more than 1.6 billion mobile phone subscriptions globally – and more mobile phones than fixed-line phones in use – shows that mobility has transformed the way people live their lives
Our vision is a world where everyone is connected. With mobile subscriptions about to reach four billion, we are closer to our vision than anyone could have imagined just a few years ago. Our business benefits people, communities and the environment in new and exciting ways. As our business expands, so do our responsibilities. This sense of corporate responsibility (CR) is a fundamental part of who we are. Considering the wider impact of our actions is embedded in the Nokia Values, which guide our behavior, and in the Nokia Code of Conduct, which gives guidance to our everyday work. Global challenges such as climate change and poverty concern us all. As a business that affects the lives of billions around the world, Nokia is in a key position to offer solutions to these challenges. We bring the benefits of mobile technology to more people in ways that reflect our values and our responsibilities.
Mission: Connecting People
By connecting people, they help fulfill a fundamental human need for social connections and contact. Nokia builds bridges between people – both when they are far apart and face-to-face – and also bridges the gap between people and the information they need.
As a market leader, the best contribution we can make to the global community is to conduct our business in a responsible way. This belief drives our commitment to creating ethically sound policies and principles that guide us in our work. Our
Corporate Responsibility (CR) agenda is framed around the Nokia Values and is carried out in all aspects of our work to ensure customer satisfaction and respect, and also to assist us in embracing renewal and striving for achievement. By striving to include all members of Nokia's community in this process, we are demonstrating our overall commitment to the belief that responsibility is everybody's business. In this section you will find information about our strategy and approach, navigating the links above will give you more concrete information on our Corporate Responsibility activities.
A 1.3 NOKIA IN INDIA Nokia has played a pioneering role in the growth of cellular technology in India, starting with the first-ever cellular call a decade ago, made on a Nokia mobile phone over a Nokia-deployed network. Nokia started its India operations in 1995, and presently operates out of offices in New Delhi, Mumbai, Kolkata, Jaipur, Lucknow, Chennai, Bangalore, Hyderabad, Pune and Ahmedabad. The Indian operations comprise of the handsets business; R&D facilities in Bangalore, Hyderabad and Mumbai; a manufacturing plant in Chennai and a Design Studio in Bangalore.
Over the years, the company has grown manifold with its manpower strength increasing from 450 people in the year 2004 to over 15000 employees in March 2008 (including Nokia Siemens Networks). Today, India holds the distinction of being the second largest market for the company globally.
A 1.4 NOKIA’S MARKET SHARE:
Today, Nokia is the leader in mobile phone technology, although they have other subsidiaries, namely „Nokia Networks‟ and „Nokia Ventures Organization‟, which, together with Nokia Mobile Phones, form „Nokia Group‟. Nokia also launched „Vertu Ltd.‟ in 2009, the world‟s first luxury mobile phone company, selling gold and platinum phones at exorbitant prices. Last year, Nokia has once again retained its top position in the market. It enjoys a market share of 32.6%, followed by Samsung (because of their CDMA phones) with 29.6% and LG with 22.8% (due to their tie-ups with Reliance). Motorola has 5.5% market share, with Panasonic at 3.8%, Sony Ericsson with 2.6% and Siemens with
1.4%; they are the fourth, fifth, sixth and seventh largest players in the domestic handset market. In the GSM handset segment, Nokia has 58% market share, with Samsung at 14.7%, Motorola at 14.1%, and Sony Ericsson at 7.1%. Thus, Nokia has a larger presence in the GSM market than the CDMA market.
A 1.4 PROBLEMS OF THE ORGANIZATION The prominent brands in the Indian cellular phone industry are Nokia, Sony Ericsson, Motorola, and Samsung. Nokia has the single largest market share in India of 60%. I have focused my research on Nokia and also on one of its major competitor; Sony Ericsson since these are very prominent players in the Indian market. Nokia has saturated the urban market including the B and C class cities and is now targeting potentially untapped markets. Sony Ericsson on the other hand has chosen to focus its energies on the B and C class cities since which it had not ventured into so far.
The following are the major problems faced by Nokia in the Indian cellular market:Identify cause of problems faced Nokia to enable the management to train the employees in handling the problems as well as solving the problem in a satisfactory manner.
Segregate identified problems of Nokia into problems requiring staff development action such as training and into problems requiring other management actions, so that these problems are accurately addressed.
Prioritize training actions in accordance to where the training need is more urgent. Marketing Strategy For Nokia
For this project I have been instructed to come up with a marketing strategy for an existing company/product I have chosen to do Nokia communications, particularly the mobile phone sector of Nokia's business. To do this properly I will need to: * Appropriately identify, collect and use primary and secondary data that is relevant to the marketing strategy of Nokia. * Produce a clear analysis of the external influences affecting the development of a marketing strategy.
* Complete a realistic rationale for the development of a coherent marketing mix for Nokia communications.
* Show a full understanding of a marketing strategy for Nokia with a clear understanding of marketing principles.
* Produce a full, well-balanced marketing strategy that reflects appropriate use of marketing models and tools.
Introducing the product
Nokia is a communications based company, which focuses on mobile telephone technology. When mobile phones first became available on the market the models were very basic with the best technology being SMS messaging (sending written "text messages" from one phone to another). Then the next advance in technology was being able to put different faces on your phone (different style covers for the front and back of
your mobile device) and
after that the technological advances have come thick and fast, with advances such as:
* MMS * WAP (internet) * Polyphonic ringtones * Predictive SMS (where the phone will finish off a word for you if it can guess what you are typing) * Camera phones and * Video recorders
Competition in the market -------------------------
With all this technology available in the communications market it is obvious that Nokia will have lots of competition, they include: * Sony Ericsson
* Samsung * Motorola * Siemens * Panasonic * NEG * Sagem and * Toplux With all of these competitors in the market Nokia must keep ahead of the game... 1.5 S.W.O.T ANALYSIS OF NOKIA
Strengths
Is a dominant player in the smart phone market via its majority ownership of Symbian and its proprietary Series 60 user interface which are projected to represent majority of the 100M smart phones sold in the next 4 years.
33% market share still the largest cell phone vendor by far, with double the market share of nearest competitor
Size should enable Nokia to amortize R&D costs and to get cost advantages Brand position: probably one of the top 20 brands in the world
Weaknesses
The N-gage is considered a flop.
Being the market leader and its increase role in Symbian is giving Nokia a bad image, much like Microsoft in the PC industry.
Slow to adopt new ways of thinking: good examples are clamshell phones which are preferred by many customers. Nokia was reluctant to produce a clamshell until this year, when it launched its first model.
Opportunities
Increase their presence in the CDMA market, which they are just entering, as well as 3G and Edge
New growth markets where cell phone adoption still has room to go, including India and other countries.
Leverage its infrastructure business to get preference and a stronger position with carriers
Threats
Late in the game in 3G creates a risk to be displaced by leaders like Motorola, LG, NEC and others.
Asian OEMs who are entering the market very aggressively (TCL, nGo Bird)
ODMs (HTC and others) enabling carriers to leverage their customer power bypassing the handset vendor. Operators want to lessen their dependency on handset vendors and the dominance of Nokia. Orange, O2, and many other operators globally are selling their own brand of phones. B. SAMSUNG
B 1.1 Company Profile
In 1938 the Samsung‟s fonder byung – chull lee ser up a trade export company in Korea ,selling fish vegetables and fruit to china .within a decade Samsung had flour mills and confectionary machines and become a co-operation in 1951. humble beginnings.
From 1958onwards Samsung began to expand into other industries such as financial, media, chemical and ship building throughout the 1970‟s .in 1969, Samsung electronics was established producing what Samsung is most famous for television, mobile phones (througout90‟s),radios, computer components and other electronics devices .
1987 founder and chairman,byung-chull lee passed away and kun-hee lee took over as chairman. In the1990‟s Samsung began to expand globally building factories in the us,Britain, Germany Thailand Mexico Spain and china until 1997
In 1997 nearly all Korean business shrunk in size and Samsung was no exception. They sold business to relieve debt and cut employees down lowering personnel by 50,000. but thanks to the electronic industry they manage to curb this and continue to grow.
The history of Samsung and mobile phones stretches back to over 10 years .in 1993 Samsung developed the lightest mobile phone of its era the SCH 800 and it was
available on CDMA networks.then they developed smart phone and a phone combined mp3 player towards the end of the 20th century .to this date Samsung are dedicated to the 3g industry . making video, camera phones at a speed to keep up with consumer demand .Samsung has made steady growth in the mobile industry and are currently second but competitor Nokia is ahead with more than 100%increase in shares.
B 1.2 VISION & MISSION VISION: “GROWING TO BE THE BEST”
Leading the digital convergence revolution As a part of vision Samsung has mapped out a specific plan of reaching $400 billion in revenue & becoming one of the world‟s top 5 brands by 2020
MISSION: “DIGITAL –E COMPANY”
excited about future to serve better services to the
people in the market of telecommunications.
B 1.3 SAMSUNG INDIA
India is the fastest growing telecom market in the world and presents an attractive opportunity for handset makers like Samsung. As per a GFK Nielson report, the Indian mobile handset market was pegged at around 155 million units in 2010. With the country adding 20 million mobile customers every month, the mobile device market is expected to grow at over 16 per cent year-on-year. Driven by the launch of 3G services, the smartphone market alone is likely to grow at over 50 per cent per annum for the next two years. The Korean handset maker‟s smartphone strategy has clicked well in the Indian handset space. The company opened its smartphone account in India in June 2010 with the launch of its Galaxy S and Wave models, and now has over 12 smartphones on almost all the popular platforms including Android, Windows and its internally developed software, Bada. Samsung had a share of 10-15 per cent in the smartphone market as of January 2011, and is aiming to notch it up to 40 per cent by end-2011. According to company officials, in 2011, Samsung‟s mobile handset division will be driven by two key factors – touchscreens and smartphones. In this segment, the company has also launched its tablet PCs. Thanks to the hugely positive response that the Tab has received across India, Samsung is targeting a 50 per cent share of the Indian tablet market in 2011. While tablet PCs are still a niche segment in the country, if Samsung positions its products well, it could well succeed in meeting its targets. A
key area of focus for Samsung will be the enterprise segment, which is showing an increased demand for such devices. In all, Samsung has over 50 handset models in India, ranging from entry-level to midrange and high-end smartphones. According to a GFK Nielsen report, the company‟s overall market share stands at around 23 per cent of the Indian mobile market in value terms.
MARKETING STRATEGY OF SAMSUNG
Aggressively hawking flips tops and clamshells with polyphonic ring tones and color screen. Nationwide distributer and retail presence in the consumer durable market. Samsung has been associated with the Lakme India fashion week for its mobile phones the company used the LIFW 2005 as a platform to launch D500,world‟s best mobile phone in the Indian market. Set up a hand set manufacturing facility in India
S.W.O.T ANALYSIS OF THE COMPANY
STRENGTH
New product concept to rollout in five month. Catching the pulse of the consumer offering design & understanding emotions. Heavy investments in technology. Focus on innovative products.
WEAKNESS
Not proactively coming out with newer mobiles. Lack in product differentiation. Different models at different price points. Focus on mass market.
not very user friendly designs
OPPORTUNITIES
Distinguish its service from competitors offer product variation. Demand for cell phones driven by the servers providers or carriers. Tie up with service providers lowering the price of the phone just by $20.
THREATS
Motorola‟s dominance in the US the European market controlling more than world market. Aggressive competitors including Sony Erikson, Siemens eating into its share. Not keeping track of the new trends in the market. Not an accessory and fashion statement.
ANALYSIS South Korean handset maker Samsung Electronics dethroned its Finnish counterpart Nokia as India's largest mobile phone maker in the last fiscal year by cornering 31.5% market share compared with 27.2% for the latter, Voice & Data survey revealed. A surge in smartphone consumption in India spurred 14.7% growth in mobile handset industry revenues to Rs 35,946 crore for the financial year ended March 2013 from the year before value of Rs 31,330 crore, as per the survey. Samsung's extensive portfolio offering a range of handsets across price points and screen sizes gave it the edge over Nokia. It ended the 2013 financial year with revenues of Rs 11,328 crore, a growth of 43.6%. "Samsung handset prices range from Rs 1,500 to Rs 50,000 and come in varied screen sizes. These two factors helped the company grab customer's attention, besides the product quality and new features," Voice & Data said in its survey of 30 handset makers.
Nokia's revenue fell 18% on year to Rs 9,780 crore as it slipped to the second position in a market which it had led for several years now. Off late though, it has been unable to match the success of smartphones offered by Samsung and Apple, and has been gradually ceding market share. Though Lumia range of smartphones, that runs on Windows operating system, the company has seen brisk sales overseas, most Indian consumers have opted for the Android platform. Failing to sense the need for dual-SIM phones was one of the strategic missteps that led to revenue and market share loss for Nokia, Voice & Data said.
Samsung to become the India‟s smartphone leader after launching with Android in 2009 Earlier Nokia was no.1. Samsung played very good game as they partnership with world‟s no.1 internet open source company Google and second they have launched many models in their smart phone category to capture market share India. Industry sources say that Samsung Electronics in Q3 smartphone shipments in India very much and Samsung surpassed Indian mobile brands and Nokia to become the India‟s largest mobile phone maker. Samsung is positioning itself in the most lucrative market of high-end Smart Phone. In the mobile phone market, he focused on the Internet, HD color screen camera phone. Its success in the design that electronic products have become the most
innovative on the market and one of the most sought-after products, it was once considered a cheap imitation of many of the more sophisticated Japanese products. Sasmung is also coming up with Windows OS but they have main focus on Android based Smart Phone Market Share in India Samsung has always been the strategy in the mobile phone product line is high-priced introduction of new products, quickly with the old product prices have occupied the market. The benefits of doing so, both let the Indian people know that Samsung is a high-end brand, but also the ability to consume fashion products, so that the Samsung based on high-end and down-take. In India Samsung Galaxy Smart Phone Series is very popular. And Samsung Galaxy S3 is very popular model in India even its price range is very high more than 35,000 but for Indian users Samsung is launching Galaxy S3 mini in the price band of below 25,000.
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Mobile handset market in India is poised to touch Rs 35,946 crore. In FY 2013. The industry is estimated to witness the growth of 14.7% during the year while Samsung remains undisputed market leader, according to a survey done by Voice&Data. In the last financial year (April 1, 2011 – March 31, 2012) mobile handset market in India valued worth Rs. 31,330 crore. One of the biggest highlights of this year was Samsung that leapfrogged Nokia only to become the leader of mobile handsets market in India. Samsung market share surged u p to 31.5% during FY‟2013 while Nokia slipped to second position with 27.2% of mobile market share in India. The Korean electronics giant nearly doubled its revenue from Rs. 7,891 crore in FY‟2012 to Rs. 11,328 crore in the last financial year, ended March 31, 2013.
Read more: http://www.dazeinfo.com/2013/08/20/smartphone-market-in-india-grew by-14-7-in-2013-samsung-remains-unchallenged-report/#ixzz2coHtZSd0 Nokia is constantly feeling the heat from growing competition in „once dominated‟ feature phone market. Local mobile vendors in India, like Micromax, Karbonn and Lava, are growing only at the cost of Nokia. Between April 2012 and March 2013, Nokia‟s revenue from Indian operations dived down to Rs. 9,780 crore from Rs. 11,925 crore in FY‟2012.
The revenues of Apple from Indian operations grew by 417.2% to Rs. 1,293 crore in FY‟2013 s compare to mere Rs. 250 crore a year ago. This resulted in 3.6% of mobile handsets market share in India for Apple. Local Indian mobile vendor Micromax reserved the third place by capturing 8.7% market share. Micromax revenue surged up to Rs. 3,138 crore in FY‟2013 from Rs. 1,978 crore in FY‟2012. Mobile handsets sales in India are expected to reach 251 million units in 2013 and could grow further to 326 million units in 2016. Majority of this growth would be pegged to Smartphone market in India that recorded 167% growth in the first half of this year. Samsung managed to capture 40.7% of Smartphone market in India, followed by Micromax and Karbonn with 19.3% and 8.6% respectively.
Read more: http://www.dazeinfo.com/2013/08/20/smartphone-market-in-india-grew by-14-7-in-2013-samsung-remains-unchallenged-report/#ixzz2coHxqb1p
Samsung Electronics commenced its operations in India in December 1995 and is today a leading provider of Consumer Electronics , IT and Telecom products in the Indian market. Samsung India is the Regional Headquarters for Samsung‟s South West Asia operations, which provides employment to over 8,000 employees with around 6,000 employees being involved in R&D. In 2010, Samsung India achieved a sales turnover of US$3.5 billion. Samsung began operations in India through its manufacturing complex located at Noida (UP), which today houses facilities for Colour Televisions (including 3D, LED and LCD Televisions), Mobile Phones, Refrigerators, Washing Machines and Split Air Conditioners categories. Samsung commenced operations of its second state – ofthe-art manufacturing complex at Sriperumbudur, Tamil Nadu in November 2007. Today, the Sriperumbudur facility manufactures Colour televisions, Fully Automatic Front Loading Washing Machines, Refrigerators and Split Air Conditioners. Samsung India has two R&D Centres in India – at Delhi and Bangalore .While the Delhi R&D Centre develops software solutions for hi-end televisions such as Plasma TVs, LCD TVs and Digital Media Products, the Bangalore R&D Centre works on major projects for Samsung Electronics in the area of telecom, wireless terminals and infrastructure, Networking, SoC (System on Chip) Digital Printing and other multimedia/digital media as well as application software. Samsung India is a market leader in product categories like LED TVs, LCD TVs, Slim TVs and Side by Side Refrigerators. While it is the second largest mobile handset brand in India, it leads in the smart phone segment in India. Samsung India has won several awards and recognitions for both its corporate initiatives as well as its product innovations in audio visual, home appliance, IT and telecom product categories. Apart from development of innovative technology, Samsung places great importance on acting as a responsible corporate citizen in the communities where it operates. Its CSR programs respond to the social and environmental needs and seek to give back to communities that support the company. In 2009, Samsung launched the company‟s Corporate Social Responsibility initiative – „Samsung Hope Project‟ with projects in
the areas of education, culture, sports, social welfare and community development. Each program under the Hope Project uniquely addresses the needs of individual communities while emphasizing on innovations for development of the community including education, technology, engineering and IT technical training.
Mobile Phone Vendor Perspective Samsung: Samsung remained in the No. 1 position in the overall mobile phone market, with sales to end users growing 19 percent in the second quarter of 2013 (see Table 3). “We see demand in the premium smartphone market come mainly from the lower end of this segment in the $400-and-below ASP mark. It will be critical for Samsung to step up its game in the mid-tier and also be more aggressive in emerging markets. Innovation cannot be limited to the high end,” said Mr. Gupta. Nokia: Slowing demand of feature phone sales across many markets worldwide, and fierce competition in the smartphone segment, affected Nokia‟s mobile phone sales in the second quarter of 2013. Nokia‟s mobile phone sales totaled 61 million units, down from 83 million units a year ago. Nokia‟s Lumia sales grew 112.7 percent in the second quarter of 2013 thanks to its expanded Lumia portfolio, which now include Lumia 520 and Lumia 720. “With the recent announcement of the Lumia 1020, Nokia has built a wide portfolio of devices at multiple price points, which should boost Lumia sales in the second half of 2013,” said Mr. Gupta. “However, Nokia is facing tough competition from Android devices, especially from regional and Chinese manufacturers which are more aggressive in terms of price points.”
Finnish firm Nokia also suffered a significant dip in its market share, which dropped five percent in Q1 2013. The lull came despite a small increase in sales of its flagship Lumia Windows Phones, which boasted 5.1 million sales in the quarter. Samsung remained the top-selling phone maker, with a 2.5 percent year-on-year increase in sales during the period. The increase was mainly due to increased interest in its flagship range of Galaxy Android smartphones. The Korean firm currently speaks for 30.8 percent of the smartphone market, a 3.2 percent increase on its share in the same period last year. Gupta said the release of Samsung‟s new Galaxy S4 smartphone will likely lead to a similar sales boom. “We expect the new Galaxy S4 to be very popular despite being more of an evolution than a truly revolutionary device compared to the S3." The firm's mixed fortunes mirrored that of the global mobile phone market as a whole. Gartner reported that global sales slowed to 426 million, marking a modest 0.7 percent growth in the market. The lull is largely due to diminished interest in older feature phones. Gartner‟s findings mirror those of competing research house IDC, which reported that smartphone sales overtook feature phone sales for the first time ever last month.
Samsung vs. Nokia Market Share Nokia was having the largest Market Share among all the smartphone manufacturers, until now. Samsung thrashed Nokia and it is the new leader in India’s Smartphone market (in volume and value terms).
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Probably you know that Nokia‟s share is declining and Samsung‟s share is increasing and the main reason for both is: Android. But why? In single line: “Android smartphones are actually „smart‟ and Symbian is OUTDATED.” HTC also manufactures Android based phones, then why only Samsung? The cheapest Android handset of HTC in India, costs more than 10,000 bucks – Many consumers in India don‟t like to pay much for a phone! Anyways, whatever the reason is, Samsung had one more reason to celebrate the new year eve. Nokia was at the top since years, this news will probably make Nokia to think about something „revolutionary‟ but this time it‟ll have to work harder: People started liking Samsung, already. “At Samsung, we believe in offering our consumers innovative smart mobile devices across different operating systems and different price points, and giving them more
choice. This has helped Samsung emerge as the preferred brand in the smartphone market in India.” - Samsung Mobile and IT country head, Ranjit Yadav.
If we talk about figures, Samsung‟s volume market share was 38% and value share was 35.2% in November‟11. But this year the fray is not going to be easy! Chinese and some domestic companies are expected to be a part of this competition. So it is clear that Nokia cannot rely on Symbian anymore.. that‟s why Lumia family is here! Last month Nokia launched two windows phone 7.5 (Mango) based handsets: Lumia 800 and Lumia 710. If you ask me: “Could they help Nokia to take down Samsung?” I‟d say, Probably not. Because the price of both Lumia brothers is „not affordable for everyone‟. But if Nokia can launch a WP Mango phone under Rs.10,000 then it‟s possible to regain the smartphone market share and beat Samsung. (Clearly my views, maybe Nokia and Samsung have some other plans!) SAMSUNG MARKET SHARE IN INDIA After overtaking Apple for the top spot in the smartphone market, Samsung is looking to overtake Nokia in the overall mobile phone market in 2012. According to a report from Korea Economic Daily, Samsung is expecting a 15% increase in its mobile phone sales next year. [1] Meanwhile Nokia‟s fortunes continue to take a turn for the worse as its partnership with Microsoft has failed to spark interest in its phones. Our $7 price estimate for Nokia‟s stock is about 40% above the market price. See our complete analysis of Nokia here Nokia’s fortunes continue to decline
We expect that Nokia will be able to sell over 400 million mobile phones this year, out of which more than 300 million will be from emerging markets like India and China. On the other hand, Samsung is expecting 374 million mobile phone sales next year compared to estimated sales of 325 million this year. Nokia‟s position has been sliding downward, with its market share in emerging markets having declined from 45% in 2008 to about 30% in 2010, and it could slide further to 27% by the end of 2011, by our estimates. If this pace of decline continues into 2012, Nokia could very well yield its number one position to Samsung.
Samsung vs Nokia Market Share Competition Competition between the two giants of the world‟s largest mobile phone maker between Nokia and Samsung Electronics to become the handset No.1 vendor around the world become more violent, because the difference between the two now is not too far away. According to Strategy Analytics market research agency, each vendor is now control three of the six regions around the world in the third quarter of 2011.
Samsung Galaxy S2 – Android
Samsung is currently occupying the position of second largest in the world to beat Nokia in three regions, including North America, Western Europe and Central & Latin America, during the period July to September, with respective market shares of 30 percent, 38.1 percent and 25.6 percent. Samsung holds the largest share in the North American market for 13 consecutive quarters since Q3 2008, and retain the top spot in the Western European markets from Q2 2011. While Nokia, the world‟s largest mobile phone manufacturers, still continues to occupy the top spot in three other regions such as Asia, Central & Eastern Europe and the Middle East & Africa with a market share of 28.1 per cent respectively, 46 percent and 52 percent. In general it can be concluded Samsung mastered most of the market share of developed countries, while the Nokia excels in developing countries.
Nokia lumia 800 – Windows phone
This is the first time Samsung lead in the region of Central & Latin America, which had always been dominated by Nokia. In terms of global market share, Nokia with the percentage of 27.2 percent market share, Samsung Electronics, which still exceeded
the 22.8 percent controlled by a narrow margin. In terms of sales volume, the two mobile phone manufacturers are hardly comparable in the North American market. Samsung managed to sell 14.4 million units of mobile phones on the market in this region while Nokia sold 700,000 units. Samsung‟s sales volume to 16.8 million units in the Western European market is almost twice higher than Nokia with 8.8 million units. Samsung Electronics successfully market 89 million units mobile phone in Q3, recorded growth of 25 percent from a year earlier and up 21 percent from the previous quarter.
