According to a research conducted by Canalys, Nokia Corporation (NYSE:NOK)’s Lumia is still grappling with uncertainty, as it tries to increase Nokia’s market share in the competitive Chinese smartphone market. Unlike most markets surveyed by Canalys, the Chinese market did not quite appear to be an Apple Inc. (NASDAQ:AAPL) stronghold. Domestic vendors like Lenovo and Huawei Technologies stole the thunder from Apple’s iPhone.
Nicole Peng, a research analyst with Canalys, shared an interesting insight on the story. She cited that the new Lumia was faced with the incredibly uphill task of filling the void left by earlier Nokia Symbian devices. The Lumia, which hit the Chinese market in April, operates on a Windows Phone 7.5 operating system.
Peng explained that the probable reason behind the slowed momentum in Lumia sales was the Windows Phone 7.5 operating system. She noted that many people in China were not accustomed to the operating system.
“I think it takes time for consumers to understand Windows Phone and to get used to it. Right now Android is seen as the default operating system,” she remarked. Peng also pointed out that Microsoft needed to match up to the bulging demand in applications, noting that local developers were not as attracted to Nokia’s platform.
Given the market conditions, Nokia Corporation (NYSE:NOK) has to find a way to filter through Android’s dominance. According to Canalys, 81 percent of all smartphones shipped during the quarter were based on an Android platform.
At the end of the quarter, Nokia Corporation (NYSE:NOK)’s market share had declined notably. Consequently, it no longer has a stake in the top five positions, with regards to vendors in the Chinese smartphone market. In fact, Nokia’s shipments to China plunged by almost half, coming in at 47 percent lower on a year-over-year basis.
Apple Inc. (NASDAQ:AAPL) on the other hand, was trampled over by local vendors, as Samsung took the day. Samsung, which is currently caught up in a heated legal battle with Apple, leads with a 17 percent market share. Apple lagged behind with 9 percent, while Lenovo and Huawei came in after South Korean company ZTE.
Peng went on to add that the outgoing quarter was characterized by a lot product launches. She also pointed out that domestic vendors were particular on extending affordable prices. This perhaps explains the unprecedented growth in their market shares.
In as much as Samsung leads the Chinese market, there are bound to be a lot of movements at the wake of the iPhone 5 launch. The launch has been highly publicized and is expected to attract record sales.
