Nokia rivals set to pounce on market share

Nokia’s rivals are looking to eat into the market share of the world’s largest maker of mobile phones as it embarks on the lengthy task of adopting Microsoft’s smartphone operating system.

Samsung, HTC, Motorola Mobility and Research in Motion believe they can capitalise on Nokia’s vulnerability as it embarks on a two-year transition to Microsoft’s Windows Phone operating system to secure a bigger share of the smartphone market.

Nokia has seen its market share slip dramatically in the smartphone segment since Apple entered the market with its iPhone and Google launched its Android operating system. The Finnish company is fighting back by switching to Microsoft’s operating system, but is unlikely to have large volumes of smartphones based on Windows Phone ready to ship until 2012.

In the meantime, Nokia is planning to continue selling smartphones based on its much-criticised Symbian operating system. But analysts have questioned whether consumers will continue to buy the devices as Symbian is due to be phased out.

JK Shin, head of Samsung’s mobile division, told the Financial Times that he planned to capitalise on the switch by Nokia.

“I can see in terms of Nokia and Microsoft’s relations we will do our best effort to try and gain more market share,” he said.

Sanjay Jha, chief executive of Motorola, said Nokia’s decision to go with Microsoft gave the US company an opening to try to mount a comeback in Europe, where it is weak.

“Europe is interesting right now from the point of view of Nokia’s transition,” he said. “Potentially that creates opportunity for us.”

HTC, the Taiwanese smartphone maker, and Research in Motion, maker of the BlackBerry, are also understood to be looking to capitalise on Nokia’s transitionary period.

Google’s Android platform overtook Symbian to become the world’s most popular smartphone operating system in the fourth quarter of 2010, according to Canalys, the research firm.

Android is enjoying rapid growth after several handset makers adopted Google’s operating system. It poses the largest threat to Nokia because the wholesale prices of some Android-powered smartphones are as low as $50 to attract less affluent consumers.

Stephen Elop, Nokia’s chief executive, expressed optimism on Wednesday that the company would succeed with its plan to turn Windows Phone into a mass market alternative to Android and iOS, Apple’s iPhone operating system.

However, Mr Jha said Nokia’s alliance with Microsoft could result in other handset makers deciding not to use Windows Phone.