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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: 49thMIMOMander who wrote (16632)	11/19/2001 10:08:34 AM
From: elmatador	Respond to of 34857

The pace of change of AMPS and TDMA for GSM has to increase! Decline steepens in mobile handset market By Maija Pesola Published: November 19 2001 14:09 \| Last Updated: November 19 2001 14:14 The decline in the global mobile handset market looked to be gathering pace on Monday as the latest research figures from Gartner Datquest showed a 10 per cent year-on-year decline in the third quarter, and Nokia, the industry leader appeared to be losing its grip on market share. Mobile handset sales fell for the first time ever in the second quarer this year, with shipments down 8.4 per cent. Figures on Monday, showing a 10 per cent fall in shipments from 104.6m units in 2000 to 94.4m units in 2001, served as an indicator that this trend is continuing and growing more accute. The widespread economic downturn, the removal of operator subsidies on pre-paid handsets, and repeated delays in the availability of handsets for general packet radio service network, the next generation of faster mobile telephone connections, were the main contributors to the steepening decline, Gartner said. Third-quarter sales had been particularly depressed western Europe, where there was an "unprecedented" fall in shipments, from 29.6m units in the second quarter to 28.4m units in the third quarter. Ben Wood, senior analyst at Gartner, said, "You would usually see a large seasonal increase between the second and third quarters. Even if the figures had been flat that would have been unprecedented. This was contrary to all part trends and is stark evidence of the market's woes." Monday's figures also indicated growing difficulties at Nokia, which remained the industry leader, but saw shipments decline year-on-year and market share slip to 33.4 per cent, from 34.8 last quarter. This was Nokia's second consecutive quarter of decline, and raises questions about whether it can reach the ambitious 40 per cent market share target it signalled earlier this year. Nokia has brought GPRS-enabled handsets onto the market relatively late compared with its rivals, and Mr Wood said, this may have contributed to the Finnish mobile phone manufacturer's troubles. An announcement of three new phone models by Nokia on Monday, he added, could be seen as further evidence of pressure on the company. "Nokia rarely pre-announce handsets. But they now seem to have a need to show consumers that they are still the leaders in this technology." Motorola saw a small year-on-year increase in shipments, while Ericsson saw a 25 per cent decline. Ericsson's market share is thought likely to be revived over the next few quarters, however, as its handset joint venture with Japan's Sony, launched in October, starts to take effect. The biggest surprise in the market-share breakdown, however, was Samsung, the Korean manufacturer, which overtook Siemens to become the world's fourth-largest handset maker. Samsung, which has had considerable success with phone models, including one with a round screen, lifted market share to 7.5 per cent, from just under 7 per cent last quarter and 4.3 per cent last year.