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Nokia: Then and now

Zach Epstein
September 11th, 2013 at 1:30 PM
Nokia Mobile Phone Sales

Microsoft’s announcement that it plans to acquire Nokia’s devices and services businesses started what will undoubtedly be a crazy month with a bang.  Microsoft will pay $7.2 billion for the two divisions and 10 years worth of patent licensing, and it will adopt a mobile strategy akin to Apple’s, where it will own the software and hardware experiences offered by its smartphones. The dust has now settled and industry watchers are offering varied perspectives on the deal. Analysts will be analyzing this acquisition for months to come, and as they do, Enders’ Benedict Evans offers two simple charts that help put Nokia’s fall from grace in perspective.

On the smartphone side of the equation, Nokia once owned 60% of the global market back in 2007. Now, its share is in the low single digits. The firm’s feature phone business drop-off is far less severe, however, but it hasn’t been nearly enough to keep Nokia in the black.

Two charts follow below, one showing mobile phone sales versus average selling prices for handsets back in the second quarter of 2007, and a second showing sales and ASPs in Q2 2013.

How the mighty have fallen, indeed.

As an aside, it’s pretty remarkable and quite saddening to see how BlackBerry has managed to sit almost completely still over the past six years, relative to the market, as the mobile phone industry exploded. Alas, it will all be over soon.

Zach Epstein

Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.

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