We might be happy to see Nokia making profit last quarter and Lumias doing great on a customer satisfaction lists, but Nokia’s mobile phone market share for 2012 dropped to all time low at 19.1%, compared to last years 23.8% according to Gartner.
What’s interesting concerning the mobile phone market in general is that mobile phone sales declined 1.7 percent from 2011. Not surprisingly it’s dumb phones that’s the contributing factor here, while smartphones hit their all time high 207.7 million units sold and 38.3 percent increase from last year.
If we are looking at just dumb phones sales, Nokia would be better off than any of the other manufacturers selling the units and squeezing profits out of them. Problem is Nokia has disappeared from smartphone market in two years and this is the exact market where you should be just now.
Demand for feature phones remained weak in 2012 and in the fourth quarter. Feature phone sales totaled 264.4 million units in the fourth quarter of 2012, down 19.3 percent year-on-year. Gartner analysts expect feature phones sales to continue to fall in 2013. Gartner predicts that sales of worldwide smartphone sales to end users will be close to 1 billion units in 2013, and overall mobile phone sales to end users are estimated to reach 1.9 billion units. - Gartner
Gartner suggests that other than Nokia keeping focused on Windows Phone, Nokia should enhance the Asha experience further and bring it more towards Symbian price margins. Gartner suggests to do this by adding more apps and devices.
It’s easy to agree with that, but it’s a another story how can Nokia truly achieve that with the underlying S40 software.