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While Motorola is in disarray as a result of its split into separate companies, Nokia and Samsung will be able to grab market share, analysts agree.
"The short-term winners will be Nokia and Samsung, and maybe Sony Ericsson will be able to increase its market share as well," said Leif-Olof Wallin, research vice president at Gartner.
Ben Wood, director of research at CCS Insight, agreed. "With any change there is some disruption, and competitors can grab market share before it stabilizes," said Wood.
Before the split was announced Wednesday, he wrote in the company blog that Motorola competitors would use CTIA Wireless, next week's big telecommunication conference in Las Vegas, to take advantage of Motorola's woes to increase their share of a highly competitive market.
But in the longer term, Motorola can stage a comeback, according to Wood. "The bad news is that Motorola has the wrong products, the good news is that can be changed," he said Wednesday, after the announcement.
He still sees strong fundamentals in Motorola. It has a strong brand and presence in important markets like China and India.
Also, a third major vendor in the market is needed to keep Nokia and Samsung in check. "It's needed to provide some balance with Nokia. A Nokia-Samsung duopoly isn't good for anyone," said Wood.
The Motorola split is a result of its under-performing mobile phone division. During last year, it fell from second to third place, with Nokia in first and Samsung in second in the fourth quarter, and its market share decreased from 21.1 percent to 14.3 percent, according to Gartner.
Gartner's analysis of what happened is that an unspecified deal with an unnamed Asian vendor fell through and as a result, Motorola decided to go ahead with the split.
"We think it was ZTE, which still can become a force in the new company," Wallin said.
He also notes that Nokia is the only Western mobile phone vendor that has been able to compete with Asian manufacturers. Along the way, Siemens and Alcatel have disappeared, and Sony Ericsson is 50 percent Japanese.
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Prioritizing Services with IT Service Management (ITSM)
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Computerworld Live Podcast #97: The Future of Enterprise Networking 25/07/2008 09:45:36
This week CW Live chats with Mark Thompson, global sales and marketing manager for HP ProCurve, on the future of the enterprise networking. Mark discusses the trends we can expect to see in the near future and how the right infrastructure can ensure your enterprise network is secure. - +
Computerworld Live Podcast #96: Security at the Edge 11/06/2008 09:22:22
CW Live speaks with Amol Mitra, HP ProCurve Director of Marketing for Asia Pacific and Japan. Today's topic: how enterprises are starting to shift away from simply controlling security via server logins, firewalls and moving to more adaptive security frameworks. - +
Data Management Edition #10: Multi-Petascale Systems 02/05/2008 09:12:33
This week we look at sustainability and the development of multicore technologies to build multi-petascale systems. - +
IT Security Edition #11: How to poison the Storm botnet 01/05/2008 08:51:55
This week CW Live presents a case study on how to poison the notorious Storm botnet . Plus we take a look at Cisco's plans for Ironport. - +
IT Security Edition #10: Cyber-battles fought and won 24/04/2008 11:09:47
Vendors bow to end user pressure to improve product security, and we take a look at the latest concepts shaping the cyber-battlefield of the future.
Tumbleweed appoints O2 Networks to its Australian Channel Partner Program 2008-08-29 12:31:00+10
HP ProCurve Brings Big Business Gigabit Switching Features to Small Businesses 2008-08-29 12:00:00+10
Nortel and LG Electronics are First in World to Demonstrate Mobile LTE Handover 2008-08-29 11:30:00+10
GlobalConnect Provides Treatment for Healthcare Provider’s Contact Support Requirements 2008-08-29 09:59:00+10
Sybase and Logica Partner To Mobilise The Supply Chain 2008-08-29 09:47:00+10
Unified Communications: Justifications and Predictions
Building a business case for Unified Communications is currently more of an art than a science. However, the difficulty of building a business case for UC does not mean that there is none - just that we need to view (and measure) UC's benefits in accordance with the stage of maturity of the technology's adoption. Read on to find out more.
