Market share of the world's top cell phone maker Nokia is rising,
industry analysts said, after its closest rival Motorola warned
investors of a second-quarter loss and lower sales.
Analysts said U.S.-based Motorola had lost market share,
much of it probably to Nokia, which sells more than one in three cell
phones in the world, news that lifted the Finnish firm's shares.
Nokia was up 1.2 percent at 21.21 euros by 08:27 GMT, against a DJ Stoxx technology index up just 0.2 percent.
"With Motorola losing market share in several regions--Europe and
Asia--I think the biggest beneficiary is Nokia," FIM Securities analyst
Jussi Hyoty said.
"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 said on Wednesday it no longer expected its cell
phone business to be profitable this year, blaming weak sales in Asia
and Europe.
"Motorola lost a lot of share," Charter Equity Research
analyst Ed Snyder told Reuters, after the company warned investors on
profits and rival Sony Ericsson released its second-quarter results.
"A little bit went to Sony Ericsson. A lot went to somebody else, probably Nokia."
Analysts said earlier this month they expected surging cell 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 cell phone maker Samsung Electronics knock Motorola
from its No. 2 ranking.
Before Motorola's profit warning, Nokia was forecast to have sold around 100 million handsets in the quarter.
"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," Danske Markets analyst Ilkka Rauvola
said.
"Sony Ericsson said competition has tightened and I think
this is due to Nokia having ramped up its midrange and high-end
products," Danske's Rauvola said.
Shares in Samsung rose on Thursday on expectations ahead of its second-quarter results announcement on Friday.
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Distributed by Hasan Shrek, independence blogger. Also run online business ,internet marketing solution , online store script .
Beside he is writing some others blogs for notebook computer , computer training , computer software and personal computer
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