Nokia loses out to Samsung on its home turf

May 28, 2013
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Nokia HQ

Samsung outselling Nokia isn’t a surprising feat, after all Samsung has held the title as the world’s largest smartphone distributor for quite a while. But Nokia had successfully been making a last stand in Finland, the country in which its headquarter is based, maintaining a lead over the industry’s dominant force, Samsung, despite its recent troubles.

However, IDC has reported that the tide is now turning in Samsung’s favour, as the company has managed to sell a higher number of mobile phones than Nokia in Finland during the first quarter of this year. Samsung secured itself a 36% share of the phone market, whilst Nokia pulled in a respectable 33% share, so it only lost out to Samsung by a tiny margin.

But this is part of a slightly longer term trend, Nokia has witnessed falling sales in Finland, and in other markets, for the past couple of years despite the fact that the smartphone market has continued to grow. Although Nokia secured a 33% share of the total mobile phone market, the performance of its smartphone products is much worse. It seems that Nokia’s Lumia handsets have failed to strike a chord with Finnish consumers, and the devices aren’t grabbing a massive share around the rest of the world either.

Finland phone sales

The chart from IDC clearly shows a growing smartphone market (Yhteensä) over recent years, but at the same time Nokia has seen it’s sales fall. Other manufacturers (Muut) are also suffering from the dominance of Samsung and Apple.

Of the approximately 587,000 phones sold in Finland in Q1 2013, about 73% of those were smartphones. Looking back a few years earlier, less than 150,000 smartphones were sold in the first quarter of 2010, and they only accounted for 25% of the total phone market, which goes to show just how much the smartphone industry has grown in recent years. Interestingly, back in 2010 Nokia held a dominant 65% share of the phone market in Finland, whilst Samsung was languishing far behind with only 12%. Something has clearly gone wrong with Nokia’s smartphone strategy.

As for the rest of the Finnish market, Apple is still trailing behind in third place with only 14% of the market, and all the other manufacturers make up the remaining 16% for the quarter.

It seems that nobody is safe from the rise of Samsung, and it’s certain that Nokia has a lot of work to do if it wants to regain its former glory. Perhaps it’s time to abandon ship and ditch Windows Phone.

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