December 22, 2014

Nokia loses its top position after 14 years to Samsung

This was bound to happen and it has. The one mistake of Nokia – not tying up with Android and not bringing forward really high tech mobile phones has hit the brand in its heart and opened up the avenue for another super player – Samsung.

Nokia has been the market leader for the last 14 years with value for money products, products which were really good and had the latest technology. The best part was the rural spread of Nokia which is now being challenged by Samsung Guru range of phones which have a fantastic battery life. The grass was green for Nokia until the first Iphone launched. Than the grass began wilting.

The launch of the first Iphone showed the world the actual true potential of touch screens. This was soon followed up by Iphone 2 as well as various followers who gave variants of the touch screen models. But the one company to truly capitalize the market was Samsung. Samsung realized the power of Google Android and the one smart move of Samsung to adopt Android operating system has paid off.

But only the operating system does not make cell phone brands. Cell phone brands are made by giving consistently good products over a period of time. Nokia failed in this aspect of business. All its new model appear almost the same. There were very minor changes and Nokia failed to attract the proper positioning in the consumers. All these factors created an opening for Samsung which gave the public exactly what they wanted – variety of prices in the smart phone segment, with touch screens, with Android and with a fabulous marketing plan. Samsung also came out with Tablets and unique models like Samsung note which have attracted the public eye.

The end result? Samsung is finally the world leader in cell phone market. Please note that this has happened only in the first Quarter of 2012 (January to march) but this trend is expected to continue over time until Nokia comes out with an smart strategy to regain its number 1 position. You cant just write off Nokia because of the deep pockets which Nokia has due to years of market leadership.

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Comments

  1. Amaan Khan says:

    Sir,
    Your post relating to mobile phones market is very nice, I am doing a project on
    “How Nokia will maintain its leadership in mature Indian market”. I am thankful if you can help me on the same,like what all questions should i add in my questionnaire.
    Thank You

  2. Hitesh Bhasin says:

    Rather than this project, Why dont u write on “Why Nokia lost its market leadership in the Indian market”. I am sure you will get a lot of learnings on how brands lose their market share and what mistakes they make. Its just a suggestion

  3. Amaan Khan says:

    That is also nice, so can you please help me on this “Why Nokia lost its market leadership in the Indian market” your topic. Thank You

  4. Hitesh Bhasin says:

    Well, i would highly recommend that you go through some articles of economic times over the past one year. I read economic times as regularly as possible to get company and brand news so that i can write opinion articles such as the one above. Economic times has over the past 1 year, several times discussed the fall of Nokia from the market leader position. Check eco times website for the same and i m sure you will receive step by step info of why Nokia failed to sustain market leadership. Main issue was that it did not take advantage of the technology available for Mobile phones nowadays. Nonetheless Nokia can still bounce back. You will have to research a lot to complete this project but it would be well worth the efforts!!

  5. Amaan Khan says:

    Dear Sir,
    Thank you very much, i will go through past few months ET as you said…

  6. i agree with with you and one more thing is that Samsung came with metro series with low price and all features (like camera, mp3, radio…..)…… That time Nokia did not reduce its price.

  7. karthikeyan says:

    Nokia is user friendly for all the segment in tier 1 and tier 11 city..but old model mobile cant attractive the people now.

  8. Ashwin Nagekar says:

    I really appreciate what u have written in the above statement regarding the current scenario in Mobile industry,But the thing is Nokia is still not going for android b’coz android market will be stopped within a year,So well in advance Nokia don’t want the customers to be dissapointed aftter one year,So Nokia is Still with symbian,Anna Os etc.Samsung think about Today’s marketing Strategy,But Nokia had already planned their Marketing Strategy for future.For example Check out this Nokia model i.e Nokia 808,Nokia is the first company to launch a 41Megapixel Mobile,It is just b’coz of their Marketing strategy.Within a year it will bounce back to it’s No 1 position.To conclude Nokia is just like a LIC Insurance policy,Maruti Cars,Hero Bikes,Which comes as a first choice in people’s mind,There is no need to convince a customer regarding Nokia phones,Nokia has already made an impact in customers mind,So Nokia is named as Connecting People.

  9. Hitesh Bhasin says:

    Your argument is based on Android going out of market within a year? Why is that so? Why do you think Android will be defunct in one year?

  10. Ashwin Nagekar says:

    Actually my friend wanted to buy a Samsung mobile,we both went to reliance digital to buy a mobile,At that time i asked Nokia person in Reliance digital that y Nokia is Not moving to android?then that particular person said me that android is going to stop within a year,so Nokia is Still in Anna,Symbian Operating system,After a year more preference will be given to windows phones,So Nokia is coming up with Lumnia.

  11. Hitesh Bhasin says:

    Nope. I am sorry to say that you are wrongly informed. If Android were to go out of the market, the first company to really shake the market would have been Samsung. Samsung has been successful only because it has given us amazing hardware based on the Android OS. Thus Samsung will be badly hit if anything happens to Android. Besides that, i dont think taking GOOGLE out of the market is easy once google gets something good in its hand. We are talking of two giants over here – google and samsung who have taken over Nokia. So i dont think coming back on top is going to be that easy for Nokia.

  12. Stefan Henriksen says:

    Do you have a link to statistics about market share of the mobile market? I am doing a report, and I wanted to see the the statistics from Q1 2012.

  13. tushar shinde says:

    nokia phones is a best mobile india im using samsung and second time uses nokia i think good function lower prices touch and type phones nokia is a number 1 mobile phones symbian attracted screen folder colourful i think nokia is a best

  14. Ashwin Nagekar says:

    Respected Sir,
    Extremely sry fr late reply,As my exams were in process i couldn’t send u my feedback regarding our Samsung Vs Nokia Debate.Let’s see how Android is going to work out in future fr Samsung.And i want to do mobile Courses can u pls suggest me some best courses in Mobile Technology which will help me to join Nokia Company in Upcoming years ?

  15. Ashwin Nagekar says:

    pls tell me Which is the best course to become a Mobile software developer?