Nokia takes casualties in 'Smartphone War'

As the smartphone market becomes even more diverse with the Palm Pre and the Blackberry Storm 2 going on sale, there is one company that is suffering due to their slowness to get on the smartphone bandwagon: Nokia.

Despite being the largest provider of mobile phones in the world, Nokia has seen a net loss of USD$1.4 billion over the July to September quarter compared with a $1.8 billion profit during the same time last year.

A lot of this has been attributed to the increasing popularity of smartphones such as Apple's iPhone.

However, Nokia says the fall in profits is due to the fall in value of their Nokia Siemens Networks division. Chief executive Olli-Pekka Kallasvuo said that sales "were constrained by component shortages".

Despite the fall in sales though, Nokia has maintained its overall global market share in mobile devices at 38 percent. Meanwhile, the smartphone market is grown exponentially, with prices falling and an explosion in choice of units.

The popularity of smartphones has also been attributed to the increase in social media such as Facebook and Twitter and desire for consumers to be online whilst mobile.

Speaking to the BBC, Ben Wood, an analyst with CCS Insight agrees, saying, "Social networks are the fuel propelling the momentum," he says. "Increasingly mobile operators and handset manufacturers are providing phones that are "a one-stop shop for social messaging whether that be Twitter alerts, instant messages or the latest pictures on Facebook."

"Most handset makers are looking to add Internet capabilities to their ranges. It is no longer about whether a phone can access the Internet but how well."

Whilst Nokia are flailing, the likes of Blackberry, Apple and the Palm Pre are growing more and more popular. While Apple's iPhone was recently dubbed the 'coolest brand on the planet', it is now facing serious competition from the Palm Pre which has already picked up the moniker - 'the iPhone killer'.

 

In development for over seven years and with pre-orders already outstripping the first-gen iPhone, the Palm Pre could be a serious contender in the market, with 27 percent of 02 customers 'keen to buy' it.

Research in Motion's Blackberry has also done well with its Curve series, that has become one of the fastest selling smartphones on the market selling 65 million units worldwide.

While these phones may not have the 'app market' the iPhone has, it is only a matter of time before the iPhone loses serious ground in the Smartphone War.

 

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