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First time ever: Samsung world's top mobile brand, not Nokia

FP Staff December 19, 2012, 13:05:40 IST

Samsung’s has displaced Nokia to become the world’s leading top mobile brand for the year 2012, according to research firm IHS iSuppli. The report also adds that this is the first time in 14 years that Nokia is not on top.

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First time ever: Samsung world's top mobile brand, not Nokia

Samsung’s has displaced Nokia to become the world’s leading top mobile brand for the year 2012, according to research firm IHS iSuppli . According to IHS iSuppli, this is the first time in 14 years that Nokia is not on top of the global cellphone business on an annual basis. The report states that Samsung’s market share account of worldwide cellphone shipments is expected to be 29 percent. It was 24 percent in 2011. On the other hand, Nokia’s share for 2012 will drop to 24 percent, down from the 30 percent market share in 2011. Apple is expected to come in at number three with a 10 percent market share, up 3 percent from last year. The report adds that the market for smartphones is going to keep growing and this probably explains the rise of Samsung. Samsung’s Android powered phones are now leading devices in US as well, which is a key market for smartphones. [caption id=“attachment_562817” align=“alignleft” width=“380”] Samsung’s Galaxy Note II is seen in this file photo. Reuters[/caption] “The competitive reality of the cellphone market in 2012 was ‘live by the smartphone; die by the smartphone,’” said Wayne Lam, senior analyst for wireless communications at IHS. “Smartphones represent the fastest-growing segment of the cellphone market and will account for nearly half of all wireless handset shipments for all of 2012. Samsung’s successes and Nokia’s struggles in the cellphone market this year were determined entirely by the two companies’ divergent fortunes in the smartphone sector.” The report adds that global smartphone shipments are set to rise by 35.5 percent in 2012, while overall cellphone shipments will increase by approximately 1 percent. At the end of 2012 smartphone penetration will be at 47 percent, up from 35 percent in 2011, adds the report. Samsung’s success has been dependent on Android. It’s range of device from the flagship Galaxy S III (which became the world’s most selling smartphone in Q3 of 2012 with nearly 18 million sales) to the Galaxy Note II ( Samsung reportedly sold 5 million of these in less than two months of the launch) to a budget smartphone like Samsung Galaxy Y have ensured the company’s success. The range of models have meant that anyone who wants to buy a smartphone can choose from a Samsung device suited to their particular budget. The report states, Samsung’s success has been built on its “fast follower” strategy for design and manufacturing. It adds that Nokia is mired in transitioning its smartphone line to the Windows operating system, resulting in declining shipments for the company. Sales of the company’s older Symbian-based phones have plunged, while its new Microsoft Windows 7-based handsets haven’t been able to make up for the loss so far. On the Samsung and Apple rivalry, the report says, Samsung and Apple duopoly represents the dominant force in the smartphone market, with the two companies accounting for 49 percent of shipments in 2012 and that the two remain the only two players that will each command a double-digit portion of the smartphone space in 2012. As far as HTC and RIM are concerned, the reports says that 2012 has not been a great year for them. Market share for HTC will shrink to 5 percent in 2012, down from 9 percent in 2011. RIM’s share will fall to 5 percent in 2012, down from 11 percent in 2011.

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