Will Nokia Lose Their Number One Place? Leaders in the Wireless Handset Market are Changing

We are watching wireless history repeat itself.standing in it, the question is for how long?
Just like in the 1990's where suddenly the leader inThe same thing that happened to Motorola last
handsets changed, we are watching the samedecade could be getting ready to happen to Nokia
thing happen today. In addition the entire line-up ofnow. Back then the marketplace went from
companies changed during the last 10 years andanalog handsets to digital handsets and now from
we may be watching the same thing starting tohandsets to smart phones.
occur once again.In this new world who will lead? We have seen
The wireless industry has been growing andnon-wireless companies enter and do well so far.
evolving. Every few years it seems like itThey are changing the wireless playing field.
becomes and entirely new space. In the 1990'sCompanies like Apple and Google are already
Motorola was number one and everyone elsecompeting. Companies like Dell and Lenovo are
struggled to catch up. Then the networksentering. Others will follow.
switched from analog to digital and MotorolaThe leaders of the industry are changing again.
wasn't ready. They quickly lost their footing and aToday they are Nokia, Samsung, LG, and
small company called Nokia took the lead withsuddenly Research in Motion is now number four,
their digital devices. They have been growing andwith Sony Ericsson in number five position.
held onto that lead ever since.Motorola isn't even in the top five anymore even
Several changes since then have occurred andthough they have done well recently with their
Nokia kept the number one spot. However, theDroid smart phones partnering with Google. HTC
wireless industry is transitioning once again andis there also to round out the top seven.
even though Nokia is still number one for now, itThis is different from just a few months ago.
is struggling to keep up and continue to matterSuddenly smart phones are everything and in that
with customers in this new world of smartworld RIM is a player. Palm can be too and when
phones.they merge with HP they may just try and show
Ever since the networks converted to digital theit. Also I expect Google to work up to the top of
carriers like AT&T, Verizon, Sprint and T-Mobilethe list pretty quickly. Add to that the many
have tried to get customers to use digital Apps.others entering the space.
There were a few hundred and they were onWhat will the list look like one year from today? I
smart phones. Smart phones were a small, butbelieve it will look completely different in
growing segment of the market. Yet Apps, whichcompanies and the order.
were a good idea just never caught on in aThe question is what about the current leaders?
meaningful way.What about Nokia, Samsung and LG. There is real
Device makers like RIM with their Blackberry andpressure on these cell phone makers. Samsung
Palm let customers use Apps, but there just wasand LG have actually grown with a healthy curve
not that much demand.over recent years because they are solidly in the
Then suddenly Apple entered the wireless spacesmart phone business and their brand says so.
with their iPhone a few years ago and changedPerhaps they face a threat as the marketplace
everything. Suddenly millions of Apple customerscontinues is transformation. Perhaps if other
were buzzing around and interested in everythingnon-cell phone companies are as successful as
this new iPhone could do.Apple they will push their way into the lead above
Suddenly the App market jumped from a fewthese more traditional companies.
hundred to around 150,000 in just the last threeThese are the questions we are wrestling with as
and a half years. Suddenly every smart phonethe industry changes, again.
maker jumped in with their versions of devicesWill these current leaders evolve into leaders in
that do more than traditional wireless phones.the smart phone space? Will they update their
Suddenly the economy tanked and the onlybrand so customers will connect with them in that
people still buying phones were the smart phonearea? Or will they start to fade from the
customers.dominant position they currently have as
All of a sudden the cell phone business was flippedtraditional cell phones are beginning to fade being
on its head.replaced by smart phones.
Suddenly Apps are important and growing veryIt could go either way and will be interesting to
quickly. Suddenly the demand for smart phoneswatch unfold over the next year or so.
keeps going up. Suddenly traditional leaders likeStay tuned because the industry is in the middle
Nokia are struggling to matter as the marketplaceof another major transformation and we don't
changes once again.yet know the winners. One thing we do know is
Don't get me wrong, Nokia is still number one withthe list of top handset makers may look much
roughly 40% of the market, and that is huge, butdifferent one year from now and the devices and
with the current direction of the industry and theirtechnologies certainly will.