Research companies predicting wireless handset market share have ruffled a few industry feathers.
Qualcomm last week issued a statement disputing Dataquest research that had Qualcomm’s market share dropping from 17.4 percent in 1997 to 8.2 percent for the first three months of this year.
“Although Qualcomm does not normally comment on information from third parties, the company believes that Dataquest significantly underestimated the size and growth of the CDMA market, as well as Qualcomm’s shipment volumes and market share.”
Meanwhile, Reuters reported a Swedish marketing firm said Swedes bought more mobile phones from Nokia than from Swedish manufacturer Ericsson between February and November. However, marketing company GfK said it was too early to tell whether Nokia would beat Ericsson in sales for the whole of 1998. “Nokia was very strong at the start of year, but since then it’s gone backwards and forwards. But if you look at the whole year you need to take into account the crucial Christmas sales,” said Johan Lagerholm, research director at GfK, according to Reuters.
Dataquest believes Ericsson handsets accounted for more than 40 percent of sales in 1997, and Nokia had nearly 20-percent market share. For the first nine months of ’98, Dataquest gives Nokia the lead at 40-percent market share and Ericsson holds on to the Number 2 position with 20-percent share.
Dataquest has Motorola’s market share up this year compared with last.
Meanwhile, Bosch is stopping U.S. distribution efforts of its world phone and several handset vendors have left the U.S. market.
What does all this mean?
Pressure. The handset market is tough and likely to get tougher. Regardless of how much the pie continues to grow, lower product margins are going to keep this market extremely competitive. And a dominating position last year does not automatically translate into the same this year or next.
Is it a prerequisite for the wireless bureau chief position that you must have a name that is a bit tricky to spell? Are vowels worth extra? The new guy, Sugrue, follows in the footsteps of Phythyon and Farquhar. This editor longs for a Smith some day.
It seems a new kind of fraud may be on the horizon. The Los Angeles Times earlier this month reported that a kidnapped woman rescued by using her wireless phone was under investigation that her call for help may have been a hoax.
