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Nokia Phone Sales Have Slipped to a Level Not Seen Since 1999

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According to the latest research from Strategy Analytics, global handset shipments grew 13 percent annually to reach 361 million units in the second quarter of 2011.

Nokia slipped to a level not seen since 1999, while Apple closed the gap on LG for third position.

Alex Spektor, Senior Analyst at Strategy Analytics, said, "Despite multiple debt crises and economic volatility worldwide, global handset shipments grew 13 percent annually to reach 361.1 million units in Q2 2011. Apple was a star performer during the quarter, as it shipped a record 20.3 million units and closed the global market share gap with LG to its lowest ever level of just over one point. LG's 3G smartphone volumes are expanding fast but the Korean vendor is struggling to grow in the 2G feature phone and basic phone sub-categories."

Neil Mawston, Director at Strategy Analytics, added, "Nokia's global handset market share dropped sharply to 25 percent in Q2 2011, registering its lowest level since 1999. Samsung is now just 4 points behind and breathing down Nokia's neck. An unexciting touchphone portfolio, inventory correction, wavering demand for the Symbian platform and limited presence in the huge US market continued to weigh on Nokia's near-term performance."

Other findings from the research include:

  • Samsung shipped 74.0 million handsets worldwide in Q2 2011. Samsung's smartphone volumes soared but its global feature phone and basic phone market share decreased slightly, due to intense competition from Chinese brands like TCL-Alcatel and ZTE;
  • ZTE maintained an upward growth trend during the quarter. Keen pricing of low-end 2G models and aggressive promoting of mid-range 3G models enabled the Chinese vendor to capture 5 percent global handset market share.

Global Handset Vendor Shipments and Market Share in Q2 2011

Global Handset Shipments (Millions of Units) Q2 '10 Q2'11
Nokia 111.1 88.5
Samsung 63.8 74.0
LG 30.6 24.8
Apple 8.4 20.3
ZTE 10.5 18.0
Others 95.6 135.5
Total 320.0 361.1
 
Global Handset Vendor Marketshare % Q2 '10 Q2'11
Nokia 34.7% 24.5%
Samsung 19.9% 20.5%
LG 9.6% 6.9%
Apple 2.6% 5.6%
ZTE 3.3% 5.0%
Others 29.9% 37.5%
Total 100% 100%
  
Global Handset Shipments Growth Year-over-Year % 14.5% 12.8%

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