Decline of Nokia Not Offset by Others


idc.gifIDC has some interesting figures that show smartphone sales in Western Europe have reached a tipping point. Q2Q11 was the first qurater where smartphones sales exceeded feature phone sales.

The press release says "mobile operators stopped subsidizing feature phones in Europe". It would be nice to know why. Maybe smartphones have reached the stage (features and price) where it’s hard for feature phones to compete? Nevertheless, some feature phones, such as latest ones from Sony Ericsson have touch screens and act like smartphones.

Also of interest is that the whole phone market has seen retraction. 

"smartphone segment was strongly impacted by the sharp decline of Nokia, which was not totally offset by the remaining players, which may indicate that Symbian fans are holding off on their phone replacements until Nokia launches its Windows Phones"

This is the first evidence I have seen that might suggest Nokia’s gamble might pay off. However, I still think Nokia’s choice of taking up Windows Phone will be seen to be a big mistake.

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