Nokia is going from strength to strength as Motorola sales flounder.
Nokia is going from strength to strength as Motorola sales flounder.
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HELSINKI - Market share of the world's top cell phone maker Nokia Oyj is rising, industry analysts said, after its closest rival Motorola warned investors of a second-quarter loss and lower sales.
Analysts said U.S.-based Motorola had lost market share, much of it probably to Nokia, which sellsmore than one in three cell phones in the world, news that lifted the Finnish firm's shares.
"With Motorola losing market share in several regions - Europe and Asia - I think the biggest beneficiary is Nokia," FIM Securities analyst Jussi Hyoty said.
"Nokia has a very strong product mix from the bottom to the top, this is a good chance to put distance between it and the number two and increase scale benefits."
Motorola says it no longer expects its cell phone business to be profitable this year, blaming weak sales in Asia and Europe.
"Motorola lost a lot of share," Charter Equity Research analyst Ed Snyder told Reuters, after the company warned investors on profits and rival Sony Ericsson released its second quarter results.
"A little bit went to Sony Ericsson. A lot went to somebody else, probably Nokia."
Analysts said earlier this month they expected surging cell phone demand from emerging markets to have cemented Nokia's leading position in the April-June quarter.
Motorola said it shipped 35-36 million handsets in the quarter, down from 45.4 million in the first three months, which could see third-placed cell phone maker Samsung Electronics knock Motorola from its No. 2 ranking.
Before Motorola's profit warning, Nokia was forecast to have sold around 100 million handsets in the quarter.
"Motorola's market share is coming down strongly and it could continue ... As it comes down, Nokia benefits directly from the vacuum in the market left by Motorola," Danske Markets analyst Ilkka Rauvola said.
"Sony Ericsson said competition has tightened and I think this is due to Nokia having ramped up its mid-range and high end products," Danske's Rauvola said.
Shares in Samsung rose on Thursday on expectations ahead of its second-quarter results announcement today.
