Motorola Market Share Down, Samsung Up

Right now it’s getting more obvious that Motorola is losing market share and Samsung is the one getting it. The decline has continued for Motorola for the past several quarters and shows no sign of abating.

The report said during the second quarter world’s third largest handset maker Samsung, increased its share to 13.4% while Motorola’s worldwide share of sales fell to 14.6%, from 21.9% a year ago. Handsets account for about half of Motorola’s revenues.

Nokia sold 99.95 million phones and increased its global market share to 36.9% in the second quarter from 33.7% in the same period last year.

“It will be interesting to see what Samsung can do in the third and fourth quarters. Samsung has been bringing in more mid-tier handsets and cutting prices on older phones faster to help build market share,” said Carolina Milanesi, research director for mobile phones at Gartner.

Analysts are of the opinion that Motorola’s market share may slip further before stabilizing when new handset models like 3G Razr2 are launched in various markets in the next months.

The market share figures are Motorola’s lowest since the third quarter of 2004, before it launched the ultra-slim Razr handset in 2005. The Razr has sold more than 50 million units, but Motorola was unable to bring out fresh products with the same popularity.

Samsung has been able to capitalize on Motorola’s missteps.