Nokia losing market share is no big news, but its a big news when the story is happening in India or any other emerging market, where Nokia always had a strong hold.
We earlier shared a report by IDC India on the growth of mobile sales in India (for 2009) and some of the key numbers from the report were:
- Nokia market share in India fell from 56.2% share in 2008 to 54.1% in 2009.
- Local players have grabbed 17.5% market share [from 0.9%, a year back]
- Only 5 local manufacturers in 2008 and the number stands at 28 now!
- Samsung’s share rose marginally to 9.7% from 9.5%
Nothing much has changed in 2010 and here are the latest figures (comparison between ‘08-09 and ‘09-10, from Voice&Data)
- Nokia market share dipped from 64% in ‘08-09 to 52.2% in ‘09-10.
- Samsung gained the market share – 10% to 17.4% in ‘09-10.
- LG’s market share increased marginally from 4.5% to 5.9%.
- Losers include Sony Ericsson (market share fell from 6% to 3%), Motorola (3.5% to 1%), ZTE (5.6% to 1.9%).
- Micromax has been one of the major winners, from nothing to 4.1% [drive by huge advertising during IPL].
- Karbonn’s market share too increased to 3% – via
As per Industry estimates, 108 million mobile phones were sold in the country in 2009-10, resulting in sales of Rs 27,000 crore as against Rs 25,910 crore during the previous year.
Nokia Market Share - The Writing is on the Wall
Nokia’s revenue too fell from Rs16,567 crore to Rs14,100 crore and the company is now betting big on services like messaging, life tools and digital music.
Quick snapshot of Nokia’s presence in India
- Launched 22 devices during FY 2009-10 (Nokia N8,N9..How many phones will Nokia Launch to combat an iPhone?)
- 45% of its 2 lakh retail outlets are in the rural areas
- Crossed production of 350 mn handsets in April 2010
In India, Nokia is betting big on life tools products even though the company seems to be losing the smartphone war.
We have been quite vocal in talking about the loss of strategy at Nokia and even though the above market share numbers need not be truly correct, the writing is on the wall.
Not just market share, Nokia is losing mind share too and is desperately looking for 1100 magic (Nokia enters Dual SIM Phone Market with C2).
What’s your take on Nokia? Is it ‘cool‘ to own a Nokia phone these days?
Recommended Read:
- Mobile Phone Market Worldwide – Nokia and Symbian Rules [Market Share Sliding]
- Are Smartphone Users Really Smart? Note to Nokia Fanboys
- Nokia’s Digital Marketing Strategy in India – Flawed? Broken?
img credit : hirok (via Flickr)
MicroMax’s will lose out in long term, more and more people after they buy these Shanzhai (Chinese) phones realize that their software’s are a crap. Without their own R&D which I think they are not interested in having, they are definitely going to lose out.
We appreciate your comment , however the software we use in our handsets are largely the ones which are popular in mobile segment.
Usually, we have Opera mini, Nimbuzz , facebook mobile and Msn messenger inbuilt in our phones and being java supported our phones can run variety of other software applications.
Hope that solve your query.
Micromax Mobile – Very happy to see you on the discussion blog. Quick question – do you plan to launch Android on any of your upcoming phones? I noticed INQ Mobile is hiring Android developers. Seems like open source operating systems and the deep resources of Google development support could help create the killer device for the emerging market. Great work with your products.
@Nandu
Yes, Android mobiles are next lined up range of products from micromax mobile. Wait for the official announcement.
Cheers..
I don’t see any reason of being sad, unless you have Nokia’s shares. For consumers, I believe competition is better than monopoly. Great going Samsung and Micromax!
Thanks for your comment
. Appreciated it.
Oh Is samsung in the same league ? never had any samsung phone
Any economy can grow only when the complete economy is involved in designing and developing Superior products. Cheaper and inferior products may in short term might look attractive but in the long term it is only going to harm the complete eco system. India will become a dumping ground for inferior and cheap phones if our country men loves such products. Atleast I would not like this to happen in India
i don’t think Nokia is competing for the same buyers as do Micromax, Karbon and other local players. Basically these phones come cheap and look trendy. So of course these will eat up Nokia’s market for cheaper phones. But Nokia still can fight for the higher end phones. Of course there’s competition from the giants (iphone and blackberry) there.
Liked the writing on the wall pic
We are planning to come in higher end segment of the market very soon with android phones. Stay tuned at http://facebook.com/micromaxinfo to find out more about future releases
Guys,
Unless you develop your own product strategy, with your own hardware/ SW dsign, this isnt going to work in the long term.
Nokia has already set the bar higher even in the low cost segment with its X2 offering, 5MP camera, mobile email etc, great form factor etc. I guess unless you are able to catch up, they are going to beat you still. Thanks
You’re kidding right? Considering Nokia is losing market share in low-priced handsets, I’m not sure how you define how Micromax is getting ‘beat’.
In relation, the only company to successfully manage both hardward and software control is Apple, and that’s only recently with the iPod, iPhone, iTunes, etc. Apple is on the verge of making a repeat of the biggest mistake in all of computing history…they are trying to control both hardward/software. Back in the ’80s IBM let people clone their PC, and Windows become the preferred operating system. To this day, Apple sells no more than 8% to 10% of all laptop/desktop machines in a given year. Fast forward 5-10 years from now, and I’ll wager that low priced handsets (like Micromax) running Android will define mobile innovation, and Apple will sell 8%-10% of handsets. Oh, and Steve Jobs will be gone by that point, so not sure who will lead the rebirth of Apple…
instead of importing from china, taiwan and rebranding it why is nobody manufacturing locally..
Aditya pointed correctly, Nokia is loosing war of cheaper mobile phones so if they want to survive they have to challenge iPhone, Blackberry, HTC etc by releasing some kick-ass smartphones with kick-ass price tag. I feel, out of 52% major portion would be cheap phones and even if they release good smartphones their share will fall.
Completely agree with Aditya. If you note, Nokia is moving up in the value chain- Launched more sofisticated (& expensive phones), heavily promoting it s Ovi store, launched Mobile money.
@ Ashish: Any idea on change in profitability & revenue? With Nokia selling more expensive phones, i guess their % profit will not be affected much because of sliding share.
I have been a loyal fan of Nokia for long.
My first and second Nokia phone, ran for a good 3 – 4 years without giving much trouble. but recently, i bought 2 Nokia phones, and both of them have started giving troubles within 6 months of purchase.
I am little surprised by the quality of Nokia phones now. You can still drop a nokia phone and guratnee that it wont break, but other than that, the hardware quality has come down considerably.
Since both the new nokia phones are giving trouble, i am forced to look at other options now…perhaps Samsung!
Nokia is surely losing out, not just for the price but i guess for the quality as well.
Hi,
I have been using Nokia phones since long time (around 10 yrs) and recently i have changed to Micromax Q5 and i am very much impressed with its performance, style and price and even i have referred two of my friends to go for it.
Time reveals the story.Earlier was nokia, samsung etc but now its turn for micromax, karbonn etc to grab the market and they are very much into it and they are going to keep moving a head.
Thanks
Kedar
Micromax & Karbonn are cheap phones not value for money phones.
They are mere hardware assemblers like the guys in Nehru Place who assemble PC’s.
Some time back… assembling PC’s was a great business… but then Dell / HP / Acer / Lenovo slowly grabbed the white box market share. This is what will happen to these Micromax n Karbonn’s of the world. I mean if Micromax can do it…so can any guy on the street… this will just crowd the market with fragmented players who eventually loose out to the big guys in the long term.
But in the short term if Karbonn and Micromax can make money why not..let them. Its an economic opportunity and let them take advantage of it!
i think nokia is best b’coze he provide good application nd service
nokia mobile lunce in market.
hi there..
wow lots of misguided frustration moving around.
The way i see it i think competition is good and it brings out best for customers always so instead of cussing lets get postivie and enjoy.
how come we got pay per second only after docomo came?
we could have got this earlier too.. but nai.. see thts how market works.and these guys are really making giants think. and what makes u think tht they will always live in small phone category…
like the bling!!
by the way there is smaller phone category which they dont inetrfere with as there least cost phn startes from 1300 and there r phones available with lower price.
i just think when there is healthy competition, customers should look out for best package deal
m loving it,…
Pay per second was an old phenomenon but dint worked much initially due to less presence.
I had pay per second scheme of BPL Mobile during 2004. During that time also the price i used to pay was 3p/sec and if we take a monthly scheme pack of say Rs.29 or something then it used to be 1p/sec but yes their was a connectivity charge of 60p or something everything you make a call which is no more the case now.
i m going to buy micromax q7, but i m worried if it will last like nokia or sony erricson, is micromax a good brand…………….anyone sujjest me what to do?
I am a bit sceptic about the reliabilty,durability and quality of Micromax and other similar companies, which holds me back for not opting them even if they are priced far less……….can u provide me with some stats which could buil up my confidence in these brands.
Another major concern is the after sale service.
If Micromax and Karbonn get on the Android bandwagon quickly, they can leverage the huge app ecosystem to offer some unique handsets for the indian market.
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MANY COMPANYS INTRDUSED DUAL SIM MOBILES MANY FEATURES BUT NOKIA60%FEATURES IN THE C2 MOBILE
been using Nokia phones since long time (around 10 yrs) and recently i have changed to Micromax and i am very much impressed with its performance, style and price
nokia is the best mobile provider company but when the micromax is enter in the indian market at that time the price of nokia mobile had decreased because micromax gives a best mobile with the cheaper rate.
cool
Previously,If had asked anyone(educated) to purchase a Chinese phone they just denied at-once … doesn’t suits to their personalty. But now same thing they are purchasing but in a new look.Chinese better know they can make fool to even educated Indians just with a new look…Same thing did micro max.
hi,
if max can satisfy 6% of mobile consumer in indian then thre is a chance to learn more about their products….
common guys,,,, it is worth it
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