Nokia and Samsung winners with Motorola split

When Motorola is in disarray as a result of the split, Nokia and Samsung will be able to grab market share, analysts agree.

While Motorola is in disarray as a result of its split into separate companies, Nokia and Samsung will be able to grab market share, analysts agree.

"The short-term winners will be Nokia and Samsung, and maybe Sony Ericsson will be able to increase its market share as well," said Leif-Olof Wallin, research vice president at Gartner.

Ben Wood, director of research at CCS Insight, agreed. "With any change there is some disruption, and competitors can grab market share before it stabilizes," said Wood.

Before the split was announced Wednesday, he wrote in the company blog that Motorola competitors would use CTIA Wireless, next week's big telecommunication conference in Las Vegas, to take advantage of Motorola's woes to increase their share of a highly competitive market.

But in the longer term, Motorola can stage a comeback, according to Wood. "The bad news is that Motorola has the wrong products, the good news is that can be changed," he said Wednesday, after the announcement.

He still sees strong fundamentals in Motorola. It has a strong brand and presence in important markets like China and India.

Also, a third major vendor in the market is needed to keep Nokia and Samsung in check. "It's needed to provide some balance with Nokia. A Nokia-Samsung duopoly isn't good for anyone," said Wood.

The Motorola split is a result of its under-performing mobile phone division. During last year, it fell from second to third place, with Nokia in first and Samsung in second in the fourth quarter, and its market share decreased from 21.1 percent to 14.3 percent, according to Gartner.

Gartner's analysis of what happened is that an unspecified deal with an unnamed Asian vendor fell through and as a result, Motorola decided to go ahead with the split.

"We think it was ZTE, which still can become a force in the new company," Wallin said.

He also notes that Nokia is the only Western mobile phone vendor that has been able to compete with Asian manufacturers. Along the way, Siemens and Alcatel have disappeared, and Sony Ericsson is 50 percent Japanese.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?