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Samsung Aims to Knock Nokia From Top Spot

November 21, 2003 - source: BWCS

Up and coming mobile handset maker Samsung is setting its sights high – it wants to be the world’s largest phone supplier by 2010. The statement by Lee Kunhee, head of the Korean vendor, is a clear challenge to Nokia, which currently dominates the global market for mobile terminals. Kunhee says his company will overtake the Finns within seven years.

The ebullient Samsung boss threw down the gauntlet during an interview with the Korea Times earlier this week. Mr Kunhee pointed out that his company will sell 2.5 million more phones this year than predicted and that by 2010 he expects Samsung to be generating US$25 billion annually from the sale of mobile handsets.

Certainly, companies such as Samsung are starting to turn the heat up on the market leader. As new 3G handsets begin to stagger onto the European market several Asian companies, have received rave reviews for their handsets from big euro customers. These same clients have not been so forthcoming in their praise of Nokia’s 3G offering. Vodafone and mm02 are said to prefer Samsung 3G models to the Finnish variety. According to industry figures Nokia has around 10 different 3G models to choose from, whilst Samsung reports it has over 100.

In fact, the market clout enjoyed by Nokia is one of the main factors which could help Samsung in its quest. Some operators are said to be uneasy at the power that the Finns can wield in the market and tensions have reportedly surfaced between Nokia and a couple of its larger customers. This gives manufacturers such as Samsung an opportunity to grab some business as operators try to counter-balance Nokia’s power.

As Samsung’s share of the global handset market continues to rise, it went from 9.8% in 2002 to over 11.2% in the first nine months of 2003, Nokia’s has slipped somewhat, down from 35.1% at end 2002 to 33.8% at end of September 2003, according to figures from Strategy Analytics. However, for Nokia the main focus should be winning the battle to supply new 3G handsets to customers and not worrying about losing out in the wider global market. Its first problem next year will be securing 3G handset orders from companies like Vodafone, which have yet to commit to any vendor.

For its part the Finnish company is far from rattled. It is reportedly targeting a market share of 40% by the end of next year and despite Samsung’s brave words, the Nokia brand will be very hard to eclipse.

 


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