Samsung plans to oust Nokia from number 1 spot in 3 years time

| December 30, 2010 | 20 Replies

According to Korea Times via Unwiredview – Samsung is planning to oust Nokia from their 13 year reign as number one mobile/smartphone manufacturer in just three years time.

The parent company is a behemoth, allowing Samsung to produce their own displays, processors and memory at their own pace.

Apparently, the next 12 months is crucial. I don’t know if these figures are correct but Korea Times says Samsung plans on selling 11 Million smartphones in 2011 over their 2.5 million in 2010? I’m sure Samsung has sold more than that?

The next 12 months is possibly more important to Nokia than ever with the launch of its long awaited MeeGo powered handset and new Symbian UI. For quite a long time Nokia has given its competitors such an EASY ride with quite half hearted products (hello N97). Hardware wise, they could have produced something more than the bare minimum Symbian requires. 2011 is no such year for compromises, Nokia. Will we still see you as Number One come 2014? Maybe the world has already ended in 2012.

KoreaTimes via unwiredview

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Category: Nokia

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Hey, thanks for reading my post. My name is Jay and I'm a medical student at the University of Manchester. When I can, I blog here at mynokiablog.com and tweet now and again @jaymontano. We also have a twitter and facebook accounts @mynokiablog and  Facebook.com/mynokiablog. Check out the tips, guides and rules for commenting >>click<< Contact us at tips(@)mynokiablog.com or email me directly on jay[at]mynokiablog.com
  • John Wiegand-forson

    I think its possible for Samsung to do it. I mean Samsung galaxy phones have been selling bucket loads. 2011 will be crucial for Nokia but if it takes Samsung to knock off Nokia to the top spot for for them to realise that Symbian/MeeGo has to deliver then so be it. I think Nokia will need a kick in the the butt if they already haven’t

  • Rant

    Very possible, mostly due to the fact they make all of their tech in-house. As long as Android keeps the pace it is going at and Samsung gets some traction with Bada they have the high and mid-end pretty much covered.
    Quality of handsets is still not quite up to it however, why people choose the plastic build of Samsung over the aluminium build of HTC is beyond me. (compared with HTC, other Android mfr.)

    • Rant

      Nokia has been giving it’s competitors a very easy ride. Probably since 2006/2007. N95 was the very last powerfull mind-blowing device out of Espoo. But the market wasn’t ready for it then, when the market did become ready to receive powerfull phoned Nokia was nowhere to be seen. Resting on their laurels perhaps?

    • John Wiegand-forson

      Completely agree on quality. The Samsung Galaxy S is a fantastic phone whenever I pick one up though you feel like your holding a really badly made product, it is nowhere near the hardware quality of most Nokia feature phones frankly.

      • Keith

        Yes, Nokia hardware is the best. But like Jay mentioned, Samsung produces their own displays, memory, and processors. Most Android phone that have been sold are Samsung (That’s my guess). That’ll increase with new galaxy s phones coming out next year and Android’s popularity is literally sky-rocketing. Many people still buy their dumbphones. And thei Bada phones have been doing fairly well. They have great hardware, and Bada 2.0 might be great too.

        I just hope Nokia increases the smartphone quality level (software-wise mostly) to stay ahead in the game. I know, many people will still buy non-smartphones made by Nokia alone but Samsung isn’t really that far behind…..
        Plus, in about 5-7 years, I think most people will buy smartphones only and the whole idea of feature phones might just go away…..

  • chfyfx

    To be honest, I do not think it will…
    Samsung is like Hyundai. All it can do is copying… Plus, there are plenty of hardware makers out there.
    Koreans loves to dream.

  • p4

    Unlikely. I recently bought the Galaxy S because I was dissapointed when I heard that the N9 isn’t coming this year, bad, rushed move…

    * The build quality is average at best
    * App loading is on the slow side because it ships with some crappy filesystem
    * New android version comes half a year after release
    * Official Gingerbread release is unlikely
    * Only 304mb ram is accesible not the full 512
    * GPS problems
    * Recovery mode problems (a big one since you can’t get into recovery to reinstall factory setup, if something goes wrong you have to send it to them. If it was a HTC you’d just reflash it…)

    So, I don’t think so. Not if they continue like this.

    • webby

      I can concur with most of that, but I do think Gingerbread will come along at some point. It’s on the nexus s which is pretty much the same phone sans touchwiz, with a silly screen and a flash.

      Also the numerous random app freezes making you force close everything.

      And having to sometimes restart the phone just to send a text message isn’t great.

      The hardware inside is sensational, but the build quality and software isn’t up to scratch. I would say Samsung would have to do much better but the fact is the phone has been a huge success for them and their execution in different markets has been quite impressive.

      • p4

        Yes, the Nexus S runs gingerbread but it is vanilla, without the touchwiz overlay. Manufacturers claim that porting their overlays to the new android versions take time, not implementing the OS itself. Besides, Sammy has a history of one update per model so I don´t expect gingerbread…

        But I don´t really care either since I´m selling mine the day the N9 starts shipping ;)

  • Dave

    First thought … hahahahahaha. Pick myself up off the floor and think about it a bit …

    Sure, its possible, but I’m unsure its a practical aim. They’ve got to displace HTC, Apple and RIM prior to beating the Nokias sales.

    And what have they got to differentiate themselves from the Android competition? Do they currently have anything that can comprehensively beat HTC? HTC are probably amongst one of the better manufacturers, and their physical designs are generally excellent.

    • p4

      You are missing one key thing man, they are talking combined phone sales not high end sales. You see, when counting all phones nokia sells most phones, samsung is second, HTC and Apple are nowhere near the top since they don´t make low end phones. And I would say that from all the manufacturers on the android wagon sammy differentiate themselfs the most, they have sAMOLED screeens and Hummingbird CPUs while ALL the others have Snapdragons and sLCDs…

      • Dave

        I edited out thoughts I had on overall phone sales, from the bottom end up.

        I’ve not been impressed by the lower end Samsungs, they’ve tended to feel considerably more basic than the equivalent priced Nokias.

        They’ll have to do something truly radical to beat Nokia at the lower end, whilst they’re currently second, they’re nowhere near the mindshare of Nokia in that segment.

        And I doubt that hummingbird and sAMOLED are really sufficient to differentiate themselves from the HTC competition. My only experience with the Galaxy S was in a store, and it didn’t feel anywhere near as snappy as expected … but then having more experience of the Desire HD, that also lacked a truly snappy experience …

        • Rant

          The Hummingbirds and sAMOLED’s account for something unmeasurable: Brand Perception.

          Currently Nokia isn’t seen as THE leader, that most likely is Apple even to the non-tech world since even newspapers tend to write more about iPhones than Nokia’s.
          With Samsung improving their stuff in the high-end and thus creating brand-loyalists (of some sort) they create people that like the Samsung brand.

          Those people recommend Samsung to others be it low-end or high-end.
          Luckily however, Nokia still has their reputation for great build quality and equal call quality.
          But if Samsung where to improve that it will be hard for Nokia to stay at the top.

          It may not be a process of a year, but in 2 years maybe three it could be possible.

          On the other hand, 3 years is an awful lot. 3 years ago there was basically no iPhone, no App store, no wide spread data use with smartphones.

          Oh, how times can change.

          • Rant

            Must add, thta low end Samsungs suck. Even something like a Star QWERTY. What a piece of crap, and I’m not even saying anything about the build quality.

    • vPuik

      Actually Samsung already almost doubles the sales of all those companies put together. 21% Samsun, 4% each for the ones you mentioned.

  • dsmobile

    they need to do it before everything blows up north vs. south match.

  • Smith

    Anyone interested in this post, should read industry expert Tomi Ahonen’s post on Symbian, which puts this all into context. http://communities-dominate.blogs.com/brands/2010/12/some-symbian-sanity-why-nokia-will-not-join-google-android-or-microsoft-phone-7.html
    It’s a big post, but well worth a read over a cup of coffee. Choice excerpts:

    “MARKET SHARE VS DUMBPHONES
    Here is the ultimate proof that Nokia is executing perfectly. Please remember again, that the rivals to Nokia are Motorola, Samsung, SonyEricsson and LG. Their mission, for all 5, is to take their global markets in cheaper dumbphones, and migrate those customers into the more expensive and capable smartphones. Who is doing this the best? Well, the only one of the top 5, who has consistently maintained a better market share in smartphones than dumbphones – is Nokia. The only one! So Motorola, SonyEricsson, LG and Samsung, when migrating customers from dumbphones to smartphones – have LOST customers. That is failing execution.”

    and

    “Yet in this bloodbath, Nokia is the only one of the classic Big 5 phone manufacturers, that has reported every single consecutive quarter of profits in its handset unit! LG, Moto, SonyEricsson and Samsung have all reported losses in their handset units for at least some quarters in the past 4 year period. Only Nokia did this incredible balancing act, profitably! And this, while the global economy suffered its biggest crisis in our lifetimes….
    …Is this not the perfect execution of a smartphone strategy – for a legacy dumbphone maker – and compared to Motorola, LG, Samsung and SonyEricsson – isn’t this a ‘night and day’ comparison?”

  • Cod3rror

    That could very well be a reality.

    Samsung is on a roll, more and more people use Samsung phones, even cheap ones.

  • shuga

    On a global scale, I don’t think Samsung will ever be able to out sell Nokia. They have two different approaches to selling. Nokia has invested in the emerging markets, they continue to dominate there as one of the only manufacturers in the area. Nearly everyone in the developed countries already owns a mobile phone, and will only really replace the phones once a year.

    However, in the emerging markets, which Nokia is targeting, mobile phones are more of a luxury and as the country becomes more developed, tons of phones will be flying off the shelves, most will be dumbphones at first, then eventually will become smart phones. Which is also great for Nokia’s bottom line, they can recycle their old parts and handsets, instead of writting them off. I really don’t see how Nokia will lose their position.

  • gordonH

    Everything is possible in 3 years, it’s a long time in the tech world.
    Samsung has been learning and improving its dumpphone and smartphone lineup. In the past 1-2 years consumers were given dependable,fashionable and well-priced phones from Korea. Although Sammy still needs to greatly improve its software, customer service and learn to regularly update its smartphones.
    Notice how Samsung’s smartphone lineup has kept it’s image intact by releasing great screens+ decent CPUs with competitive pricing. I wouldn’t recommend anyone but the Focus and GalaxyS does look tempting on paper.
    While Samsung’s dumbphone lineup keeps getting better with dual-sims, Qwerty, touchscreen and Sammy even has CDMA models. These days it’s either you choose a Nokia or a Samsung dumphone.
    Bottom line, Nokia’s got the advantage and lead but Sammy aren’t sitting still. The N8 and Symbian^3 has given back Nokia it’s respect and image amongst the loyalist…. but it’s gonna take a few more hits or months to look “cool” again for a teenager while carrying a Nokia.