Nokia remains dominant despite credit crunch

Nokia remains at the top of the pack as the world’s largest supplier of mobile phones, according to new figures released by analysts Gartner.

In a slumping worldwide telecoms market Nokia increased its global market share during the second quarter of this year to 39.5%, compared with 36.7% during the same period last year.

According to Gartner’s report, Nokia’s portfolio of phones is the best placed to deal with the slowing world economy.

One of Nokia’s key strengths in the second quarter has been its ultra low-cost mobile phones sold in developing markets.

Reducing the price of mid-range handsets has also helped Nokia to increase its lead in western populations feeling the pinch of the credit crunch.

Gartner expects Nokia’s sales to increase in the second half of this year as touch-screen handsets are downgraded from high-tier prices to mid-tier prices.

LG and Samsung also increased their market share during the second quarter.

Motorola’s market share fell 4.5% on year to just 10%, whilst Sony Ericsson’s share fell 1.4% on year.

Motorola’s failure has been blamed on its slow uptake of 3G and GPS devices, and the company’s inability to provide phones with a good-quality internet browser.