Is Apple Disrupting The US Market For Nokia And Does Nokia Really Care?

Yesterday, Nokia published their Form 20-F report atlas, this thing is 220 pages. Buried on Page 57 you’ll find the Global Mobile Device Volume By Geographical Area report which indicates strong growth around the Globe. The anomalistic region for Nokia though is North America, where in 2007 they faced a declining demand for their products …   Read More

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Nokia LogoYesterday, Nokia published their Form 20-F report atlas, this thing is 220 pages. Buried on Page 57 you’ll find the Global Mobile Device Volume By Geographical Area report which indicates strong growth around the Globe. The anomalistic region for Nokia though is North America, where in 2007 they faced a declining demand for their products to the tune of 5.9 million devices.

Nokia Mobile Device Volume by Geographical Area

These results are for the fiscal year ending on December 31, 2007 and so it might make sense to recognize the events of June 29th, 2007… Apple launching the iPhone. I don’t know if Apple was entirely responsible for the decline but you could probably make an argument that a combination of iPhone buyers between June 29th, 2007 and December 31, 2007 coupled with consumers that had plans to go iPhone once their contract was up might have accounted for some of it, wouldn’t you think?

Nokia says it’s because they were ramping down their CDMA business, and you have to dig around the report to find evidence of this but they’re basically just blowing off the decline as sort of a so what by not addressing it. These are the only statements I could find that address it.

During 2007, we gained device market share in all regions except North American and Latin America, where our market share declined.

In North America, our market share declined in 2007. The lower market share in North America in 2007 was primarily driven by our much lower CDMA device volumes compared to 2006, as we effectively ramped down our existing CDMA business during 2007

Maybe they’re right considering that they produce 1.5M handsets per day. What’s 5.9M phones when you’re cranking that out every 3.9 days and plugging them into other less restrictive and growing channels?

The North American market requires customized specifications that don’t exist in other markets which has an impact on Nokia’s profits and after sale service abilities. So perhaps they’re happy to let it go until the economies of scale as they put it are in their favor?

You can grab the pdf here if you want it.

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7 comments

  1. Vince

    iphone is only an iconic phone and apple will take years to be even close to Nokia in terms of tech and market share worldwide.

    We all know that the US market is way behind the rest of world when it comes to handset availability.. this is mainly due to the operators customization requirements. They require too much stuff in it that consumers dont even want.

    In terms of handset design and functions i think Nokia has a good roster of handsets available. All Nokia has to do is to cut a deal with AT&T or TMOBILE (both GSM) then they are good to go.

    It all boils down to that– crappy phones = crappy mobile entertainment experience. crappy mobile experience = crappy mobile content, application and mobile marketing..

    crappy mobile content, application and mobile marketing = market that is left behind by rest of world when it comes to mobile services.

  2. Iconic

    I guess if you don’t have 3G in your country, you wouldn’t know what it is Victor.

    The iPhone may look good but it has poor function in the arena of 3G.

  3. victor

    Many consumers are overlooking the 3g thing iconic.

  4. Iconic

    The iPhone isn’t that great coz it’s not even 3G..yet. The USA is waaaaaaaaaaaay behind parts of Asia and Europe so the likes of Nokia still have time to react to the iPhone.

    GSM is the way to go.

    But watchout for Android because WiMax may steal the thunder of GSM in the future through IP-based phones.

    Shivers, it must be difficult battling cash-rich behemoths like Google and Microsoft.

  5. KenC

    Doesn’t this also have something to do with the Qualcomm lawsuit over Broadcom’s use of CDMA patents, thus Nokia cutting back on CDMA handsets?

  6. lrd

    Let’s face it: Nokia & RIM are for the fight of their lives come June-July. Don’t get me wrong, they’ll sell those so “yesterday” phones to the masses; but those phone will be buried in the iPhone hype once gain and become 1999’s news in the drop of dime.

    We’re going to see yet another platform rise this summer like it or not. Nokia & RIM better come up with something better than Verizon’s cheap Voyager in order to compete for mind-share or else the reaper will come-on knocking sooner than they think.

  7. slappy

    I think its more like Apple doesn’t care what the others are thinking. They are just too busy running at full speed with their devices.

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