Nokia Marketshare Shrinking

As much as I don’t like to say it, Nokia’s market share seems to be shrinking, at least in Europe. The high competition is showing and as diverse as Nokia’s product lineup is, it’s not really diverse enough. Their platform strategy is great for their margin, but bad for diversity. They need a clamshell model bad (which is coming thank god) and they need to go back where they came from. Innovating, but innovating first. It’s not really how innovative you are on paper in this respect but how innovative you are in the eye of the buyer.

Of course, Siemens is currently pushing hard into the low end of the market, and this obviously hurt Nokia. At the same time, they might not have had a big dent in their sales as such, as the higher priced phones might be from Nokia still.

And they are still pushing new titles for the N-Gage out, even one new one by themselves.

As for the increase in sales, I talked about the sales increase mid june 2002 already, on Motley Fool. It is going slowly but the changes that are apparent to users are coming off age and are moving into the mass market. Things like polyphonic ring tones, color screens and picture phones / mms, are showing users at first sight that it’s worth getting a new phone. And the replacement cycle hasn’t really started yet.