Nokia has seemed determined recently to remind the world that it, not a certain Cupertino [Calif.] rival, is the world’s dominant handset maker. In the space of four days, the Finnish company, which accounts for 37 percent of global mobile-phone sales, announced plans for a netbook computer, unveiled a new bargain-priced touchscreen handset, and a high-end “Internet Tablet.” Nokia also rejiggered its top management, elevating an executive in charge of user friendliness to the executive board. Finally, the company announced an ambitious effort to offer money-transfer services to the billions of handset owners in emerging markets who don’t have bank accounts.
All but the last announcement seemed aimed squarely at Apple, whose phenomenally successful iPhone has thrown Nokia off-balance. Although the Apple accounts for less than 2 percent of the overall handset market, its iPhone has stolen share from Nokia in smartphones, the market’s sweet spot. Sales of high-end gadgets with computer-like capabilities grew 27 percent in the second quarter, according to market watcher Gartner. That comes as the overall market for mobile handsets fell 6 percent over the same period. Gartner says Apple’s share of the smartphone market soared to 13 percent from 3 percent in the second quarter of 2009 from a year earlier, while Nokia’s slipped to 45 percent from 47 percent. (Nokia counters that it recently has regained share.) Apple declined to comment for this article.
Nokia Chief Executive Officer Olli-Pekka Kallasvuo denies Apple is driving the company’s strategy. Rather, he says, Nokia is aiming at totally new markets as the mobile-handset business shifts from hardware to a greater focus on such services as games, music, and navigation. “It’s not simply fighting against your competitors like Apple, it’s claiming new ground. It’s claiming no-man’s land,” Kallasvuo told BusinessWeek on Aug. 27.
Still, the unprecedented flurry of announcements signaled that…