Nokia’s failures vs. Apple’s vibrant iPhone platform puts market share at risk

Apple Online Store “Like most Finns, Perttu Iso-Markku always bought mobile phones made by his country’s biggest company, Nokia Oyj,” Diana ben-Aaron reports for Bloomberg.

“Then in February, he invested in an Apple Inc. iPhone and started loading it with applications. He finds Helsinki restaurants using, identifies songs on the radio with Shazam, checks the weather for cycling, follows the Huffington Post, and gets European football scores on his iPhone,” ben-Aaron reports. “Nokia is unlikely to win him back anytime soon. ‘If I just wanted a phone, I’d buy a Nokia,’ said Iso- Markku, a 34-year-old officer at OneWorld Finland, a non- government organization. ‘I wanted something more like a small computer.'”

ben-Aaron reports, “Iso-Markku’s switch shows how Espoo-based Nokia, the world’s largest maker of mobile phones, is struggling against application-rich competitors such as Apple as customers increasingly want their handsets to be catch-all devices. As more and more of the industry’s battles are fought on content, Nokia’s piece of the $50 billion market for smartphones, the industry’s fastest-growing segment, is shrinking.”

“The failings on software are costing Nokia some market share even as it ramps up its own Ovi Store for applications,” ben-Aaron reports. “Nokia’s share of worldwide smartphone sales fell to 41.2 percent in the first quarter from 45.1 percent in the year- earlier period, according to Gartner, while Apple’s doubled to 10.8 percent.”

ben-Aaron reports, “Nokia faces other rivals in this segment, including Palm Inc., which this month started selling its newest model, Pre, and opened its App Catalog with 18 applications.”

MacDailyNews Take: We included that sentence for the humor value alone.

ben-Aaron continues, “The Ovi Store Web site listed 239 applications on June 16 — 50 more than the previous week… Apple has more than 50,000 applications available for all iPhone and iPod Touch models after less than a year of operation. The company says there have been more than 1 billion downloads at a 30 percent commission on an average application, with most applications costing a few dollars or nothing.”

Full article here.

[Thanks to MacDailyNews Reader “Graeme” for the heads up.]

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