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Mobile Telecommunications in a World

Buy custom Mobile Telecommunications in a World essay

Nokia has been “beaten” by Apple Inc to become the largest Smartphone manufacturing company in the world. In the second quarter of this year, a financial performance review was conducted and the company’s revenue fell by 7 percent. Reports have shown that Nokia has been lagging behind in the Smartphone market. It has been confirmed that Nokia’s position has began to falter, a statement that was read in February. This was verified when a memo was sent to the Nokia staff. It had contained a vent talking about Nokia’s position in the Smartphone market, it was increasingly lagging behind.

In July 25th 2011 it was quoted that there was no cell phone that had the equivalent of the Apple Inc product. Google’s Android which was two years old was confirmed to occupy the second position in the Smartphone market. In the year 2010, Nokia’s market share was seen to decrease from 38 percent to 28 percent. Nokia has therefore lost the time to pursue the successes achieved by the iPhone and Android. This is because it has lagged behind the trend that has been established in the mobile phone market. Nokia was adopted by the Symbian Operating system which has been increasingly retarded thus leading to its criticism. In the current air, Nokia Smartphone shipments have fallen 34 percent to 16.7 Million units as compared to Apple which has sold more than 20 Million units of iPhone in the same period. (Curwen, 2011)

Nokia has recently laid off to 700 employees in the UK; a step that was directed to saving the company’s set targets. Since the late 1990’s, Nokia has already been entrenched in the first ranking when it had won a competition against Motorola. It has actually been known as a winner in the simple mobile market where as Apple Inc consists of a Co business that was originally on the computer. Apple Inc began introducing the Smartphone iPhone. Radical changes has been effected by the Nokia’s chief executive as its fourth quarter results have portrayed that it has rapidly lost ground to the Smartphone makers using Apple and Google’s Android Operating  system. Nokia is working very hard so as to adopt with the changing markets.

Results of Nokia


Net Profit

Earnings per share


€ 12.7 Billion

€ 745 Million

€ 0.2

€ 0.4

An increase of 6%

A decrease of 21%

A decrease of 31%



So as to try and improve the Finnish company’s weak sales in the US Nokia may try to use Operating systems made by Android or Microsoft’s Smartphone’s.  Its shares have fallen almost 9 percent which portrays a confirmation of a steep decline in the Smartphone market share. Nokia has been unable to come up with mobile phones that can compete with Apple iPhone and Smartphone’s that use Google’s Android Operating system, a procedure that has contributed greatly to its falling profitability. Its Operating profit has decreased from €1.47 Billion to €1.09 Billion which clearly shows it’s lagging nature in the phone market. (Pan, 2010)

The Nokia Company has been expected to stick with its existing Symbian Operating system and MeeGo Smartphone Operating system in the majority of its Markets. However, for the US markets they are expected to use the alternatives of Android or Microsoft’s Smartphone Operating system as explained earlier on. Android was earlier on rejected as it was claimed that its use could damage Nokia’s attempt of turning the fledgling MeeGO Operating system into a leading alternative to both the Apple and Google Smartphone platforms. 


There are some significant challenges in Nokia’s competitiveness and their execution. The industry has greatly changed and thus they too have to change so as to compete with it, the changing industry. Nokia should come up with a competitive smart phone that can incorporate a number of factors. These factors may include the following: a user friendly hardware, software and services.

Comparison of Nokia’s financial performance with the bench market

 Irrespective of losing the market share and the change in their strategies, Nokia is still the company that has the biggest share in the mobile device market. It owns a total of 22.8 percent of the mobile device market. Samsung comes in closely and has been confirmed to be the second company in the market with a total of 16.3 percent of the market share. There are a couple of other major handset manufacturing companies that come after this two. They include: LG, Apple, RIM, Motorola, and Sony Ericson. The other companies take approximately 35.8 percent of the market share. (Leonard, 2010)

 However, a different situation occurs in the Smartphone market whereby Android is in a good position in this market where it takes about 43.4 percent of the Smartphone operating system market. Apple’s iPhone operating system also comes in with 18.2 percent of the market share. Symbian, an operating system that has adopted Nokia takes 22.1 percent of the recent market although this number has been confirmed to decrease from quarter to quarter.

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