Given that NOK and MOT together hold almost 60% worldwide market share in the mobile devices business, it’s unsurprising that the competitive struggle between the two firms is intense. And with more than 1 billion mobile phones expected to be sold this year, the stakes are as high as it gets.
Both companies have recorded significant revenue and market share growth in the recent past (See Exhibit 1). In spite of the size of the mobile device market, we think that it offers enough growth opportunity for the top two vendors. In fact, since both MOT and NOK have grown market share virtually every quarter since Jun-05, it appears that the top two handset manufacturers have enjoyed market share gains at the expense of other vendors.
read more…