The Market Share Of The Traditional Mobile Phone Giants Landslides

With the market share of the traditional mobile phone giants declines

, the business performance of the important chip providers such as Texas Instruments is directly affected. The market decline of the traditional mobile phone giants including Nokia has brought a significant impact to chip suppliers and foundries. The improvement of the related business is inevitable.

In 2011, Chinese mobile phone users reached 930 million, an annual growth rate of 8.1%.the feature size of mobile phone users grew from 600 million in 2008 to 720 million in 2010, but the market share decreased from 93.6% in 2008 to 88.3% in 2010. Into 2011, the market share of the feature phone accounted for only 76%.

The decline of the feature phone's market share is mainly due to the impact of the Android smart phones and the iPhone. It is also predicted that by 2012, China's users of the functional mobile phones will fall to 630 million. The market share is 65.2%.

Nokia's smart phone business's impact from the Android and the iPhone is more apparent. The data show that in the second quarter, Nokia's global market share of the smart phone has slipped to the third, from 38.1%in the last year to the present 15.2%. Nokia Symbian's share in China's market of the smart phone operating system fell from 66.1% in 2008 to 38.5% in the August of 2010. And Android system rose from 0.3% to 30.9%. Nokia's market share declines have a great influence on the associated chip manufacturers. The first is the Texas Instruments, the world's leading mobile phone chip maker.

According to the market research, applications processors Texas Instruments's production of processors in 2010 accounted for 85% of the total number of Nokia. It also included a 92.7% of Symbian mobile phones. The company in the early September lowered its second-quarter sales forecasts. The profit decreased 13% over the last year. The main reason is the sharp drop of orders from Nokia. The data show that, due to the over-reliance on Nokia, Texas Instruments' market share of application processor in the first quarter dropped to 19.2%, well below last year's 34.5%.

The current decline in performance is due to the decline of the overall economic environment, not the reduction of a single customer's order. Nokia's market decline also affected China's foundry business in mainland. The market decline of the traditional mobile phone giants has brought a significant impact to chip suppliers and foundries.

by: Amanda Xia

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