Thursday, March 27, 2008

Nokia and Samsung to be Winner in the aftermath of Motorola Split, Says Analysts

Following the split of Motorola, the industry analysts are thinking that Nokia and Samsung have something up to grab. It is seen as a good chance for Nokia and Samsung to win some more market share in the absence of Motorola. The split of this global phone maker, Nokia and Samsung are expected to be the short time winner by the analysts. Motorola lost a significant amount of share over the last one year globally which led them go down from second to third place in the fourth quarter of last year. The wrong products the company had last year have been lethal for themselves. However, the industry analysts are still hopeful regarding Motorola to make a come back as the company still has strong presence in the emerging markets like China and India.

PC World reported:

"The short-term winners will be Nokia and Samsung, and maybe Sony Ericsson will be able to increase its market share as well," said Leif-Olof Wallin, research vice president at Gartner.

Ben Wood, director of research at CCS Insight, agreed. "With any change there is some disruption, and competitors can grab market share before it stabilizes," said Wood.

But in the longer term, Motorola can stage a comeback, according to Wood. "The bad news is that Motorola has the wrong products, the good news is that can be changed," he said Wednesday, after the announcement.

Also, a third major vendor in the market is needed to keep Nokia and Samsung in check. "It's needed to provide some balance with Nokia. A Nokia-Samsung duopoly isn't good for anyone," said Wood.

The share of Motorola has been decreased from 21.1 percent to 14.3 percent over the last one year. Well, it sill true that the company still has a good image in India and China and some other South Asian countries. However, it would be very difficult for Motorola to bring back their market share even in these countries if the company makes delay to come back in the market.

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