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September 08, 2011

Nokia Falls as Smartphones Rise in Europe
By Ashok Bindra
TMCnet Contributor

According to international multimedia news agency Reuters, the market for Apple's iPhones and smartphones powered by Google's Android (News - Alert) software is expanding in Western Europe. A study by market research firm IDC shows that the second-quarter smartphone sales in Western Europe were up by 48 percent year on year. For the same quarter, the former market leader Nokia (News - Alert) fell further behind, wrote Reuters.

IDC study shows that unlike the growing smartphones, the overall mobile phone market in Western Europe declined 3 percent from a year ago, after seven quarters of growth, wrote Reuters.

Quoting IDC (News - Alert) analyst Francisco Jeronimo, Reuters wrote, "Smartphones now dominate the Western European phone market and those vendors with stronger portfolios in the segment are consolidating their positions."

As per the Reuters report, which is based on IDC study, Nokia fell to No. 2 position in its home market in the first quarter, when Apple surpassed it in smartphones and Samsung Electronics did so in overall cell phone sales.

With Nokia shares declining, the second quarter results were more depressing for Nokia. The IDC study found that Nokia's share of the Western European smartphone market halved from the previous three months to just 11 percent, and the Finnish firm dropped in smartphone rankings behind Samsung, BlackBerry developer Research In Motion and Taiwan's HTC.

In another statement, Jeronimo said, "Android-powered handsets from the likes of Samsung, HTC and Sony Ericsson (News - Alert) have been able to drive strong volume and to grab the biggest slice of share from the declining Symbian as Nokia moves to Windows Phones."

Reuters wrote that Nokia's sales have suffered since the firm started selling smartphones using aging Symbian software, which it has dumped in favor of Microsoft's (News - Alert) Windows Phone. According to Reuters, the first Nokia Windows Phones are expected to reach the market later this year.

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Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.

Edited by Rich Steeves


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