Nokia's emerging market position is not guaranteed: China's share has slipped to 19%

Source: Internet
Author: User
Keywords Nokia Share
Introduction: Foreign media today wrote that Nokia is not only in the high-end market in Europe and the United States face Apple and Google competition, in Asia's emerging markets also suffer from the challenges of low-end mobile phone manufacturers.  The following is the full text of the article: Emerging markets are under pressure from New Delhi to Shanghai to Johannesburg, a large number of cheap handsets from China's ZTE and India's Micromax are eroding Nokia's dominance in emerging markets.  To make the Finnish handset giant worse, Asian handset makers are increasingly turning to Google's Android free operating system, a product that is popular with operators and consumers in emerging markets. With the market share of Apple, rim and Google growing, Nokia is already under pressure in the high-end smartphone market, making cheap handsets the company's most valuable business.  But the business is now increasingly under threat. "Nokia's position in emerging markets seemed unstoppable 3 years ago, but low-priced chipsets and growing size helped many Asian manufacturers adopt aggressive pricing strategies and gain market share." Gioff Braber Geoff Blaber, a UK market research firm CCS Insight analyst, said: "In the face of flexible competitors, this" powerful handset maker, which originally dominates the 50-dollar market, is now under pressure. " "Last week, Nokia dropped the key targets it had just set a few weeks ago and blamed the main reason for the plight of the Chinese and European markets," he said.  Its share price fell 18% as the market was sceptical about Nokia's strategy of partnering with Microsoft's Windows Phone. Competition in the cheap mobile phone market will be even more brutal. The number of mobile subscribers in emerging markets is as high as 1.7 billion, and Nokia's previous advantages in these markets are brand awareness and extensive distribution channels.  However, ZTE and Huawei, such as the original focus on network equipment business enterprises are also actively developing mobile terminal business. ZTE executives said in April that the company's mobile phone shipments are expected to exceed 80 million this year, up One-third from last year's 60 million.  The main markets for ZTE's handsets include China and Europe.  Huawei this year's mobile phone shipments target is 60 million, the company has been in Beijing's high-end shopping malls and Milan Fashion week to carry out promotional activities. "They already understand the needs of the operators," said Melissa Chau, IDC's research manager for the Asia-Pacific Terminal Unit, at the very low end of the market, Melissa 邹, in the case of ZTE and Huawei. "Demand for low-end handsets has grown dramatically in emerging markets since the impact of the global economic crisis began to ease in 2009." However, Nokia's entry-level handset sales have fallen for 3 consecutive quarters.  From January to March this year, Nokia sold 84.3 million of smartphones, down 2%. Market share collapse "Nokia was supposed to start fighting back two years ago, so it's late to start moving so it needs to face very severe competition. "American market research companyStrategy Analytics analyst Neil Mouston, said.  Some Asian manufacturers are not well-known, but in China the biggest competition comes from companies that are not known at all. Brand-name manufacturers refer to small Chinese companies that use the chipset that MediaTek or the company communicates, and they control 45% of the market in China.  Nokia's market share in China fell to 19% from 33% two years ago. U.S. market research firm Gartner says that over the past year, brand-name Chinese manufacturers have begun to expand in Africa, India, Latin America and Russia.  The sum of their handset sales has surpassed that of Nokia.  Analysts expect these vendors to focus next on cheap smartphones running the Android operating system. In India, Nokia also faces setbacks. India, the world's fastest-growing mobile phone market, has more than 800 million registered subscribers, but it has gathered 150 companies.  The entry-level mobile phone selling to the mass market is priced at around 20 dollars. Cheap mobile phones and 0.5 cents a minimum per minute call rates have spurred growth in India's mobile phone market.  Analysts said some Indian handset makers had a net profit margin of about 2% per cent, with most of them producing handsets in mainland China and Taiwan. According to Gartner, the first quarter of this year, unlicensed Chinese manufacturers controlled about 20% per cent of the Indian market, with Nokia about 26%. But two years ago, Nokia's share was as high as 60%.  Handset sales in India are expected to reach 220 million this year, up about 25% per cent from last year.  CyberMedia, a research firm based in India, says that by satisfying locals ' preferences, handset makers such as Micromax have won 7.6% of India's handset market last year. Micromax, backed by private-equity firms, has launched a host of features that meet the needs of local users.  For example, the dual-card feature allows users to make full use of the differences in telephone and data tariffs of different operators, and distinguishes between work and private calls; Gravity sensors can change carrier networks by rotating mobile phones, and can use mobile phones to act as remote controls for televisions, air-conditioning and DVD players. "The Micromax sells 1 million terminals in one months, of which more than 80% to 85% are dual sim phones."  "Abishek Chaohan Abhishek Chauhan, Senior Advisor to Frost & Sullivan, American market research company, said. "Users who first use mobile phones want to get new features at affordable prices. Nokia's performance enhancements are really bad, and these new brands offer all the features-dual SIM, radio, multimedia, storage, video.  Dakite Singh Daljit Singh, a mobile phone retailer in New Delhi. The demand for high-end features of smartphones and falling prices have madeThe smartphone market has almost doubled in the past year.  Smartphones now account for 25% of all mobile shipments and more than half of profits.  The growth in demand for Android phones will further push the 2011-year smartphone market to expand, boosting the performance of Asian companies such as HTC and Samsung, which focus on the Android platform.  Although Nokia still has the world's largest smartphone sales, market share has been eroded by Apple, rim and Samsung. "Samsung's share of the stolen from Nokia will be more than many people expect. It has a wide range of product lines, from high-end galaxy handsets to low-end models, which will rob Nokia of its territory in Asia, Europe and North America.  "said Lee Seung-woo, an analyst at South Korean brokerage Shinyoung Nomura. Meanwhile, HTC's market capitalisation overtook Nokia for the first time this April.  The company's share price has risen 37% per cent this year, with a market capitalisation of $35 billion, while Nokia's shares have fallen 41% per cent, with a market capitalisation of just 24.5 billion dollars.  Nokia still owns the world's largest handset sales, with 19 times times its sales last year, according to Strategy Analytics, but Nokia's handsets are priced at $85, while HTC is up to $360 trillion.  HTC Desire Series handsets have achieved impressive results, and investors expect new handsets such as Thunderbolt and incredible to be favored by consumers in Europe and the US.  In the Western European prepaid market, although no brand manufacturers have yet to dabble, but Samsung in the first quarter of this year occupy the top spot, in Nokia's lair beyond the veteran overlord. According to IDC, Samsung's sales in the region grew 5% year-on-year, with market share growing to 29%, while Nokia's sales fell 10% per cent year-on-year and market share dropped to 28%.  Nokia's share of the smartphone market in Western Europe also slipped from 41% a year ago to 20%. "Nokia is still suffering from both sides: the low-end market has Asian manufacturers, high-end market with American companies." Strategy Analytics's Mouston said. (Ding Macro)
Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.