iPhone knocks Nokia off their perch

Anthony Caruana
Tuesday, 07 December 2010 09:09

Your IT - Mobility

Market analysts IDC says that Apple's iPhone is now outselling Nokia to take the lead in the smartphone market. Australian smartphone shipments have risen 67% year-on-year in Q3 2010 with over 60% of new mobiles now being smartphones, according to the results of their Q3 mobile device tracker.

Apple's shipments rose sharply to account for 36.5% of the smartphone market, placing Apple ahead of Nokia, with 30.5% market share, to take first place in the smartphone market.

Nokia continues to hold first place in the overall market with 37.6% market share, however the lead has again narrowed, with Apple now leaping to second place overall, with 21.6% market share. Nokia will be banking on its flagship N8 to claw back market share in Q4, however the rapidly growing range of available Android smartphones pose a real threat to Nokia.

"Nokia remained at the top of the smartphone market since 2002, when it unseated Palm to become the highest selling smartphone vendor in Australia. Nokia's dominance was seemingly unstoppable, however three years after launching, Apple has done what once seemed impossible," said Mark Novosel, Market Analyst, Telecommunications at IDC.

"Android-powered smartphones also saw very strong growth in Q3, collectively accounting for 21% of the smartphone market, up from 7.1% in Q2 and only 2.1% in Q1. HTC saw a strong increase in shipments in Q3, with market share soaring to 8.9% to take third place in the smartphone market, up from fifth place in Q2," added Novosel.

Looking forward, IDC is forecasting the Australian smartphone market will continue to grow steadily at a compound annual growth rate (CAGR) of 19.3% throughout the 2009-2014 forecast period.

"2011 will be a critical year in the Australian market, Android will continue its strong upward trend, with Apple's iOS leading the charge. Nokia must fast-track the development of its high-end Meego-powered smartphones, in order to regain market share and avoid being overtaken by Android. The combination of a strong Australian dollar, intense competition amongst carriers and high demand for smartphones means 2011 will be a fierce battleground for smartphone vendors, with strong downward pressure on prices in order to win over consumers," concludes Novosel.