What happens when you don't try to live off a single four letter acronym.
I’ve said it, then said it again, said it some more and then blown my top: if you try to live off a single ageing brand there will be consequences – and today proves it.
Motorola has finally – and deservedly – slipped from its number two position in the international mobile phone market after being replaced by IT uber-swot Samsung.
The de-throning comes by the narrowest of margins: Sammy’s 37.4m shipped handsets in Q2 verses Motorola’s 36m, but with the former clearly on an upward spiral and the latter overly reliant rehashing the increasingly decrepit RAZR it would appear this gap will only widen. In fact Samsung’s figures are up an incredible 50 per cent over the same period last year while Motorola continues to struggle in the European market (a sign of our good taste?).
Interestingly however these figures don’t tell the whole story since the mobile market – like the PC and mp3 player markets before it – has become a brutal arena of high volumes and low margins. Bearing this out are results which show, despite Samsung’s high rise in the number of handsets shipped, that its overall revenue in Q2 was $16bn, just four per cent up on Q2 2006. Net income was $1.5bn, down five per cent from last year!
So who is numero uno I hear you ask? I’ve delayed it this long to hide my disgust… yep, it’s Nokia – the Volvo of the mobile phone market *sigh*