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Nokia's Global Handset Market Share Tumbles 29 Percent

Posted on: Friday, 30 April 2004, 06:00 CDT

Nokia's global handset market share tumbles 29 percent

LOS ANGELES, April 29 (Xinhua) -- The world leading cell phone maker Nokia shipped 44.7 million handsets in the first quarter of 2004, down 11 million units from the same quarter of 2003, though it still dominated the market, according to a new study.

The study, released by market research firm Strategy Analytics, found Nokia's global share dropped to 29 percent in the first quarter from 35 percent in the same period a year ago, as its competitors gained market shares with new products.

"This quarterly stumble is an indication that its core reference design portfolio needs to be updated to allow greater product flexibility that will divert share losses over the long- term," Strategy Analytics said.

Nokia was slow to roll out new models and some analysts questioned its candy-bar style designs, as Motorola's flip phone enjoyed ready market worldwide.

According to Strategy Analytics, the world's major mobile handset vendors shipped 153 million units, about 40 percent more than in the same period the previous year.

In comparison to Nokia, Motorola saw 51 percent growth in the first quarter, while Samsung and Sony Ericsson also enjoyed strong quarters, as South Korea's LG led all major vendors with a 56 percent growth.

Strategy Analytics said that Nokia may reduce prices in the coming quarters to stay ahead of competition in growth rate, as the Nokia has indicated, but this could only be a short-term solution.

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