Nokia gaining from continued problems at Motorola

Motorola is struggling in the mobile phone market where they are the second largest player after Nokia.

The company has failed to produce a decent replacement for their Razr range of mobile phones which became massively popular worldwide.

As a result, Nokia seems to be gaining market share at Motorola’s expense.

Motorola recently warned in a statement that they are going to post a second-quarter loss and lower sales.

The company is also losing market share to rival companies specifically to Nokia which is expanding its presence in the US market.

FIM Securities analyst Jussi Hyoty spoke about the rivalry between Nokia and Motorola: “With Motorola losing market share in several regions — Europe and Asia — I think the biggest beneficiary is Nokia. 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.”

Charter Equity Research analyst Ed Snyder added: “Motorola lost a lot of share. A little bit went to Sony Ericsson. A lot went to somebody else, probably Nokia.”