As Nokia’s much chronicled downward spiral continues, with shares today trading a couple pennies off the company’s 52 week low of $6.17, the Finland-based smartphone production leader has some more bad news on the table this morning…its no longer the world’s smartphone leader. Ouch. According to analysts at Nomura Securities (NYSE:NMR) Nokia (NYSE:NOK) will reportedly lose its status as the world’s #1 producer of smart-phones this quarter to rival Samsung.
The future holds more bad news for Nokia, with analysts saying that an all out free-fall in sales is brewing for the company as it sets to forfeit huge portions of market share to competitors such as Apple (NASDAQ:AAPL), and Google (NASDAQ:GOOG). Apple is also expected to surpass Nokia’s sales totals this year, which would see the reigning world leader in phone production slip to #3.
According to analysts there is little Nokia can do to salvage the year, saying “Nokia looks set to relinquish its smartphone crown to Samsung and Apple. If Nokia’s new phones are not well received in the third quarter and (with) the Galaxy S2 ramping up, Samsung might overtake them and become the smartphone leader in Q3.”
In something of a desperate move, Nokia is set to switch all of its operating systems on smart-phones to Microsoft (NASDAQ:MSFT) windows OS systems as part of an “overhaul” of its business model under the company’s new CEO. The alliance between the two smart-phone laggards bears little promise for sales of both, with Windows OS phones representing less than 7% of smart phone market share. Desperate times call for desperate measures indeed, but for Nokia (NYSE:NOK) it may be a case of too little, too late.