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Nokia Continues Its Cell Phone Dominance

The dual strategy of targeting developing countries with low-cost mobile phones and instituting price cuts for its mid-tier devices helped propel its momentum, Gartner said.
Already boasting a market share larger than its next four competitors combined, Nokia continued its dominance of the mobile handset market with a 39.5% share of market in the second quarter, according to figures reported Wednesday by market research firm Gartner.

Nokia's dual strategy of targeting developing countries with low-cost mobile phones and instituting price cuts for its mid-tier devices helped propel its momentum, according to Gartner analyst Carolina Milanese, who authored the latest global mobile report.

"Nokia has the best portfolio in the market to deal with the slowing economy," Milanese said in a statement.

The runners-up continued to jockey for position with Samsung nailing down 15.2% of the quarter's market. Motorola, which pioneered the mobile phone market and once dominated it, lost another 4.5% of its market power and dropped ownership to just 10% of the market's share. Noting that Motorola suffered from a lack of "3G and hot applications such as GPS and good-quality Internet browsing," Milanese indicated the U.S. firm could cut prices to remain competitive.

Looking ahead, Milanese predicted that Nokia's sales will likely increase in the second half of the year as its touch-screen devices will likely sell well among high mid-tier audiences.

While Gartner expects sales of mobile handsets to continue rising in the second half of the year, it believes the rate of growth of the devices will slow in the coming months because of deteriorating economic conditions globally.

During the quarter, Gartner said global sales of mobile handsets rose 12%, accounting for 305 million shipped handsets.