MediaFile

Tech wrap: Android takes over

A T-Mobile G1 Google phone running Android is shown photographed in Encinitas, California January 20, 2010. REUTERS/Mike BlakeGrowing demand for phones running on Google’s Android platform will help the smartphone market grow in 2011, boosting companies like HTC and Samsung who are betting on the platform, analysts said.

The smartphone market will grow 58 percent this year and 35 percent the next, research firm Gartner said. Android, a distant No. 2 to Nokia’s Symbian platform just last year, will increase its market share to 39 percent in 2011, while Symbian’s share will roughly halve to 19 percent following Nokia’s decision to dump the platform. Apple’s iPhone platform will be slightly bigger than Symbian this year, while Research In Motion will control 13 percent of the market and Microsoft Windows Phone 6 percent.

Sales of cameraphones will grow to more than 1 billion handsets this year, helped by fast growth at the high end of the market, Strategy Analytics said.

Moody’s cut its credit rating on Nokia, citing the Finnish company’s weakening market position and uncertainty over its transition to Microsoft’s Windows Phone software. HTC overtook Nokia in market capitalization for the first time on Thursday. Nokia still has higher volumes, selling 19 phones for each HTC phone sold last year. But its average sale price was just $85 compared with HTC’s $360, according to Strategy Analytics.

The FCC adopted data roaming rules that would allow smartphones to access the Internet in areas across the country not covered by their wireless carrier, forcing carriers like AT&T and Verizon Wireless to offer “reasonable” roaming rates. Under the rules, wireless carriers would be free to negotiate the terms of the agreements, and could institute safeguards to prevent congestion or harm to their networks from roaming traffic.

Nokia and Microsoft? Just maybe

Nokia CEO Stephen Elop (left) and Microsoft CEO Steve Ballmer address the Senior Leadership Event before they announce plans for a broad strategic partnership to build a new global mobile ecosystem . Nokia and Microsoft plan to form a broad strategic partnership that would use their complementary strengths and expertise to create a new global mobile ecosystem.

Nokia CEO Stephen Elop (left) and Microsoft CEO Steve Ballmer. Credit: HO

Before there were smartphones Nokia made smart phones. Sleek. Colorful. Attractive. Sporting a distinctive, trademarked ring that, because there are so many Nokia handsets in the world, may actually be heard 20,000 times a second.

Nokia’s phones never made a huge splash in the United States, but worldwide they are to this day the market leader with some 300 million in use. In Q4 of last year, Nokia’s flagship Symbian mobile phone operating system boasted more than a third of the world’s market share. At nearly 37 percent, that was 10 percent more than the range of devices running Google’s Android, and more than Apple’s iPhone and Rim’s Blackberry combined.

But Nokia is losing, by leaps and bounds. The handwriting is on the wall. Nokia CEO Stephen Elop, who joined the company only last September, minced no words last Wednesday when he said the company was standing on a “burning platform.”

from Commentaries:

Humbled giants eye business phone market

Nokia e71LONDON, Aug 13 (Reuters) - Once they were warriors battling one another on the digital battlefield. Nowadays, Microsoft and Nokia are worriers, huddling together for comfort.

The world's top phone and software companies need each other to compete with Apple, Google and Blackberry-maker Research in Motion (RIM), whose products increasingly define what users expect from phones and charge premium prices in consequence.

In the market for so-called "smartphones", Deutsche Bank estimates Apple and RIM now take home more than half of all profits, despite producing less than a third of high-end mobile phones. Nokia held a 45 percent share of the smartphone market in June, according to Gartner Inc. (Table 2 in Gartner release)