It seems Nokia is on a downward spiral while the other major smartphone manufacturers are fast gaining market share. Nokia, the leader of global handset distribution, has dropped the most in market share over the the past 5 years.
Despite only selling 3% of the world’s mobile phones, Apple and RIM are dominating when it comes to profitability. Together, the two companies make up for 35% of the total industry’s operating profits. Analysts are saying that if RIM and Apple’s market share were to climb to 5%, it could translate to them owning roughly 58% of the total operating profits.
It just goes to show that we’re entering a new economy of mobile devices, where ubiquity isn’t enough. You have to be constantly innovating and offering not only hardware with new features, but a system of delivering innovative software to the customer. Nokia has the Ovi Store, but I doubt developers are seeing any significant revenue from it.
The software truly makes the hardware these days.