Nokia’s 14-year reign in the mobile handset market might be coming to an end, according to the recent estimates of the South Korean company. Based on a report published by Reuters, Samsung Electronics Co thinks it will manage to outsell Nokia in 2012 thanks to their new models of smartphones.
Samsung is one of the most appreciated producers of smartphones on the market. The increasing sales percentage registered in the third quarter of 2011 helped Samsung become the Nr. 1 smartphone maker in the world. Its financial situation looks even brighter in the future because the South Korean firm plans to allure its customers with sleek designs and a rich product lineup. Meanwhile, rival companies like HTC, Nokia and Research In Motion fail to attract customers.
Choi Gee-sung, Samsung’s chief executive, proved reporters that he is right in estimating that Nokia will be outrun by the South Korean manufacturer in 2012. He stated that the latest reported quarter shows that Nokia was overtook by Samsung in point of revenues. Given these numbers, it is safe to assert that the Finnish company will register fewer shipments than the South Korean firm in the following year.
If these estimates turn out to be true, Nokia will suffer its second defeat since its rise in 1998. In the second quarter of 2011, the Finnish company was exceeded by Apple, thus losing its dominance on the smartphone market.
A considerable number of analysts have stated, like Samsung, that Nokia will be overtaken by the South Korean company in 2012. However, the majority of the experts think Nokia will continue to remain an important player in the mobile phones industry even though it will sale less than its rival, Samsung.
There are also analysts who think Nokia’s financial situation will improve in the following months. They justify their statement by saying that the Finnish manufacturer has a strong position in the emerging markets which will experience a strong demand in 2012. Moreover, the cellphone market growth is expected to slow down this year because the demand is very weak in Western Europe. Therefore, Samsung will have to aggressively target emerging markets if the firm wants to outsell Nokia.