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Motorola to fall behind Samsung?
Nokia on the up and up...

By Reuters

Published: Friday 13 July 2007

Market share of the world's top mobile maker Nokia is rising, industry analysts said, after its closest rival Motorola warned investors of a second-quarter loss and lower sales.

Analysts said US-based Motorola had lost market share, much of it probably to Nokia, which sells more than one in three mobile phones in the world, news that lifted the Finnish company's shares.

Nokia was up 1.2 per cent at €21.21 by 08:27(GMT), against a DJ Stoxx technology index up just 0.2 per cent.

FIM Securities analyst Jussi Hyoty said: "With Motorola losing market share in several regions - Europe and Asia - I think the biggest beneficiary is Nokia.

"Nokia has a very strong product mix from the bottom to the top. This is a good chance to put distance between it and the number two and increase scale benefits."

Motorola, meanwhile, said it no longer expects its mobile phone business to be profitable this year - blaming weak sales in Asia and Europe.

After the company warned investors on profits and rival Sony Ericsson released its second-quarter results, Charter Equity Research analyst Ed Snyder said: "Motorola lost a lot of share. A little bit went to Sony Ericsson. A lot went to somebody else, probably Nokia."

Analysts said earlier this month they expected surging mobile phone demand from emerging markets to have cemented Nokia's leading position in the April to June quarter.

Motorola said it shipped 35 million to 36 million handsets in the quarter, down from 45.4 million in the first three months, which could see third-place mobile maker Samsung Electronics knock Motorola from its number two ranking.

Before Motorola's profit warning, Nokia was forecast to have sold around 100 million handsets in the quarter.

Danske Markets analyst Ilkka Rauvola said: "Motorola's market share is coming down strongly and it could continue... As it comes down, Nokia benefits directly from the vacuum in the market left by Motorola.

"Sony Ericsson said competition has tightened and I think this is due to Nokia having ramped up its midrange and high-end products."

Shares in Samsung rose yesterday on expectations ahead of its second-quarter results announcement.