Nokia- losing the smartphone war?

Posted on July 14, 2010 by

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An article yesterday on MobileToday.co.uk reported that Nokia are beginning to suffer in the smartphone market. According to a recent survey by YouGov in which over 2000 smartphone users were surveyed; only 34% would consider getting a Nokia handset as their next phone purchase.

Only 10% of those questioned expect to buy a Nokia in the June survey, compared with a fifth in December 2009. On the flip side, Apple’s powerful brand and desirable product marketing has meant that 41% of consumers expect to buy an iPhone in the future, with 70% of respondents willing to recommend the Apple brand to others.

Nokia, once the giant in the mobile market, and still the largest of all of the phone manufacturers, is suffering in the smartphone market due to outperformance by Apple and Android in the app space. Nokia’s Ovi store is significantly lacking behind the smartphone leaders.

Morgan Stanley’s research into the mobile marketplace showed that the average number of apps downloaded by Nokia users was a mere 5 per user, compared to an average of 47 for an iPhone user and 22 for an Android user. The number of applications available in the Ovi store is a very modest 7k, with iPhone dominating the space with over 200k and the rapidly growing Android Market with 50k. The lack of choice of apps is certainly affecting their performance in the smartphone market.

The YouGov research indicated that the application market is becoming a significant factor in people’s mobile decision making. Research conducted by AllTheTopBananas earlier in the year found that 82% of job seekers with a smartphone download apps on a regular basis.