• Voter paralysis

    With so much tilting voters against change, democratic reason is the loser, says Solly Moeng.

  • The power of perseverance

    True grit is a reliable predictor of who will achieve success in life, says Ian Mann.

  • It's the system

    The system sucks and it’s being used far too often as an excuse, says Mandi Smallhorne.

All data is delayed
See More

Nokia heralds 'new season'

Jun 21 2011 12:24
Singapore - Troubled mobile phone giant Nokia on Tuesday expressed confidence it can reverse its sagging fortunes and remain a market leader amid stiff competition from rivals such as Apple and Samsung.

Chief executive Stephen Elop said at a regional telecoms fair in Singapore that the Finnish company was making good on promises to overhaul itself and unveiled a new high-end phone, the N9, to bolster his claim.

"Earlier this year Nokia outlined a new course to change our direction. Just four months and ten days later, on June 21, today, a new season is beginning at Nokia as well," Elop said at the CommunicAsia 2011 industry expo.

"We have shifted our organisation, we have a clear strategy and we are focused on delivering results."

Nokia hired Elop, a former Microsoft executive, last September as its market share slumped in the face of competition from Apple's iPhone, Asian rivals led by Samsung, and Canada's Research in Motion, maker of the Blackberry.

In February, the company said it was going to adopt Microsoft's Windows Phone 7 (WP7) operating system for its future smartphones to do battle with Apple's iOS and Google's Android software, a favourite among Asian manufacturers.

Nokia has seen its global market share dwindle after other companies came up with sleeker mobile phones offering a wide range of applications from games to business software.

Nokia phones accounted for at least eight out of every 10 phones sold in Asia at one point, according to the CommunicAsia programme but analysts said it faces an uphill task to stay in the lead.

Nomura Equity Research has forecast its share of the entire mobile phone market will decline from 25.1% in the first quarter this year to 19.9% in the fourth quarter.

In the smartphone sector, the decline is steeper, from 25.5% in the first quarter to 13.1% in the fourth quarter - which would result in Samsung ending Nokia's 14-year streak as world number one.

In addition to Samsung and Apple, Taiwan's HTC is also starting to rival Nokia, Nomura said in a June 12 report.

Until competitive new products are launched, "it is hard to see how management can arrest this decline," Nomura commented.

"By the end of 2011, we doubt that Nokia's market share in Western Europe, APAC (Asia Pacific), or North America will be higher than low- to mid-single digits at best," it said.

"This implies that Nokia has lost relevance in these markets - markets that are brand conscious and technology aware. Not only has Nokia's brand value fallen, but it seems unlikely that WP7 is about to leapfrog Android or the iPhone," it added.

Nokia boss Elop said he was confident that the firm's first Windows 7 model will be launched later this year "and we will ship our products in volume in 2012."
samsung  |  apple  |  nokia


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Would you take out a payday loan?

Previous results · Suggest a vote