Nokia today revised its mobile device market share outlook for the third quarter 2008. Nokia now expects its mobile device market share in the third quarter 2008 to be lower than in the second quarter 2008.
MacDailyNews Take: “Nokia Chief Executive Olli-Pekka Kallasvuo brushed off suggestions that Nokia needs to do more to fight back the foray of iPhone onto its home turf, calling it a ‘niche product.'” – Dow Jones Newswires, April 17, 2008
This compares to Nokia’s earlier estimation provided in the second quarter results announcement on July 17, 2008, when the company said it expected its mobile device market share in the third quarter 2008 to be approximately at the same level sequentially.
Nokia’s current estimate that its mobile device market share in the third quarter 2008 will be lower than previously expected is due to multiple factors. These factors include Nokia’s tactical decision to not meet certain aggressive pricing of some competitors, the overall market competition, including the entry markets, and the temporary impact of a slower ramp-up of a mid-range Nokia device. Nokia’s strategy is to take market share only when the company believes it to be sustainably profitable in the longer term. Nokia has not broadly participated in the recent aggressive pricing activity – as it believes that the negative impact to profitability would outweigh any short term incremental benefits to device unit sales.
MacDailyNews Take: “Nokia’s senior vice-president of devices, Søren Petersen dismissed the iPhone’s security and business features as ‘not worthy of discussion.'” – The Financial Times, August 13, 2008
Nokia will report its third quarter 2008 results on October 16, 2008.
MacDailyNews Take: Bloodbath.
“…the overall market competition…”
And not so much as an allusion to the “A” word. Now THAT is restraint!
The magic word! Time for me to get the yellow rubber duck, towel, soap and bubblebath for my Bloodbath!!!!!
In my opinion, Nokia has produced nothing but crap since the late ’90s. They chose to produce low price, low margin devices and dumped them on everyone. Now, they claim that they have decided to “not meet certain aggressie pricing of some competitors”? Maybe because there isn’t any more margins to cut!
This isn’t Apple’s market and I don’t think, as some do, that they’re going to produce a cheaper ‘iPhone nano’ and try to enter it. Although I could be wrong.
I think that Nokia’s decision not to get involved in a cut-price rat race – as Dell and HP have done – is a good one.
@ Søren Petersen
iPhones security and business features AREN’T worth talking about. That kind of time costs time/money and your blonde Nordic hair is catching fire.
In other words, ‘we could not compete even if we were giving them away, so we chose to do nothing. Our iPhone knock-off is taking us longer to produce then we planed, which is a good thing cause no one is lining up to buy it. We’ll maintain our course and continue to loose market share for at least the next 18 quarters most likely longer then that.
Wait till the Google Android operated phones are out. Bloodbath then!
Good take MDN.
Regarding Android, I think it’s overhyped. The fact that there is no “minimum” hardware standard, combined with the idea that the carriers will have full control over what is allowed on the device makes Android seem DOA. How “open” is Android going to be when the carriers and handset manufacturers have full control over what features are included? This is another Microsoft vs. Apple type battle. Android will have the “openness” of a PC (and all the baggage that comes with it like infinite hardware combinations and legacy support) while iPhone will have tight hardware and software control/integration (and all the usability and sleekness that comes with it).
MDN
“Bloodbath.”
It’s about the damn time!
@Jaygee
Android is a non-starter… Over-hyped. Under-delivered. And as Google starts to enter these (cell, browser, etc.) markets they risk alienating their very own loyal partners…
I saw that coming a long time ago with the original iPhone. Niche product huh Nokia?
NOT!!!!!!
I agree with The Muffin Man. I always thought that Nokia’s biggest problem wasn’t Apple, but was LG. The Korean LG phones are sold a lot cheaper than Nokia phones. Nokia will have a harder time competing with them.
Ironically, Nokia’s support for the Mac’s iSync is much better than LG, which frankly, is non-existant. It would be a shame to see Nokia fail when they have worked pretty nicely with Apple products.
As far as Google’s Android, I still want to see them succeed too. There is always room for a better mouse trap. Hear that Microsoft Mobile? How much Android’s features get eaten up by the various carriers, will be worth seeing. The same could be true for the iPhone, if it goes to other carriers too.
If this keeps up, they’ll be finnished.
Who’s talking smack now! I also read the DELL is going to make a smartphone to compete with the iPhone.
“I also read the DELL is going to make a smartphone to compete with the iPhone.”
It’s true. But it only connects to Dell Tech Support. Pretty smart.
You guys are so funny and with absolutely no facts to back your claims, including MDN
1. Nokia has been the most profitable cell phone vendors for years and years, with margins over 20c on the dollar, give me just ONE link to some fact where it states that Nokia has low margins.
2. The global volumes regarding the iPhone is TOTALLY insignificant at this moment (might change in 1-.2 years tho), it has no effect on Nokias market share with Nokia selling over 450 million phones a year. Just do your basic math MDN before saying stupid things like *cough* bloodbath
Nokias market share has gone up and down between 35-40% for many years, so there is nothing new here. Also, Nokia still estimates that it will sell 10% more phones this year compared to last year – hardly a bloodbath *yawn*
This is predicated on the idea that any old “smartphone” comes anywhere close to “touching” the tiny mac that is called iPhone.
Nokia has no idea how to create a tiny computer, much less one that runs UNIX!
Nokia has no OS X
Nokia has no future in this space.
Frankly there are very few companies that are up to the task of creating a ecosystem as complete as the the one the iPhone enjoys.
Apple has surrounded several whole industries and now its years too late to realize that Apple Inc. has painted them into a corner with M$ and there is no way out.
Suck it losers!
Hmm Apple will sell maybe 11-12 million phones this year, that’s less than 1% of all the 1.2 billion (predicted) phones sold this year.
If that 1% is distributed evenly, taking into account the curent market share, we get 0.4% drop in Nokia market share due to the iPhone.
More blood at the feet of iPhone… keep up the good work guys!
please mail me for mobile price all handset.