People in US prefer Motorola over Nokia

May 23, 2007 10:28 GMT  ·  By

Recent reports have shown that Motorola is gaining more and more market share in the US, while Nokia's rates are actually dropping. This comes as a result for this year's first quarter profit analysis.

Actually, at a global level, things stand just the other way around. Nokia has registered a 17% raise on the market share, while Motorola has lost almost 14% of it. "Motorola's struggle with profitability and weak product portfolio has opened up a unique opportunity for Nokia to gain further market share as well as potentially stabilize average selling prices in the coming quarters", declared Enskilda analysts in April. Moreover, Nokia is actually recovering from average prices of its best sold handsets.

At a global level, "Motorola's collapse will benefit Nokia for several quarters and this should already show in the first quarter" analysts from Swedbank observed.

Still, Motorola's low global sales have not damaged the company's image in the US brand. Actually, reports show that an 11% growth has been registered for this company as a result of the almost 40 million handsets, worth of USD3 billion, that have been sold in US by the end of the last year. This comes in the context of an average 12% raise of the handset market over the same period of time in this country.

Moreover, the same report shows that Nokia has fallen from second to fourth place in the top of the first mobile devices providers in US. Moreover, mobile phone users have preferred mobile phones that come with Bluetooth headsets and removable memory over any others.

Motorola actually holds the first place in this US classification, as the leading mobile technology provider, with 35 percent, followed by Samsung and LG. These two other phone brands seem to maintain the same figures in the market share ranking, without many fluctuations over time.