Nokia Losing Share in Wi-Fi Handset Market

Nokia, the leading market share vendor for dual-mode Wi-Fi handsets, has seen its market lead slip significantly over the past year, reports In-Stat In 2Q08, Nokia had over 50% market share.  This has dropped well over 10 share points as of 2Q09.  Over that same time period, Apple has significantly increased market share, as did RIM.

Wi-Fi handset shipments have increased significantly over the past several years. From 2007 to 2008, shipments increased by over 50%. This growth is a result from increased phone functionality, falling price points, and carrier promotion.

While the enterprise was the original smartphone/Wi-Fi handset market, Apple's iPhone has propelled consumer adoption. Wi-Fi's popularity as a compatible cellular technology is tied to its ability to improve the user experience and also help maintain the quality of the cellular network. A Wi-Fi-enabled cell phone allows for free access to data, and it improves performance.

Recent research by In-Stat found the following:

  • Wi-Fi/cellular handsets are driving hotspot usage.  For example, AT&T recently announced that sixty percent of all AT&T Wi-Fi connections in the third quarter of 2009 were made from smart phones and other integrated devices, up from 49 percent in the second quarter.

  • The potential for voice over Wi-Fi is gaining popularity, as cellular/Wi-Fi phones become more pervasive and consumer familiarity with VoIP increases.

  • The Wi-Fi attach rate (percent of handsets with embedded Wi-Fi) will more than double over the next two years.

  • There were 121 models of cellular/Wi-Fi handsets introduced in the first half of 2009, almost as many as were introduced in all of 2008.

This Market Alert is drawn from the In-Stat research,  Wi-Fi in Mobile Phones: Dual Mode Becomes the In Thing (#IN0904627WS), which covers the worldwide market for Wi-Fi-enabled cellular handsets. It includes:

  • Examination of Wi-Fi handset technology and markets.
  • Forecast of worldwide cellular handset units by wireless technology through 2013.
  • Impact analysis & comparison of Wi-Fi in handsets vs 3G and 4G.
  • Forecast of Wi-Fi handsets, including unit shipments and attach-rates.
  • 2008 and 2009 quarterly market share analysis of leading manufacturers of handsets with Wi-Fi.
  • Vendor and product profiles: Apple, HTC, LG, Nokia, Research In Motion (RIM), and Samsung.
For a free sample of the report and more information, please contact a sales representative:

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The price is $2,995 (US).

This research is part of In-Stat's Wi-Fi Markets service, which examines new applications for WLAN chips and devices in the business, home, and public sectors. The service covers emerging technology trends, as well as extension technologies like wireless mesh networking and wireless security.

Related In-Stat research:

Global Wi-Fi Chipset Forecast and Analysis: 2007 to 2013

Delayed Departure: Will In-Flight Broadband Take Off?

Wi-Fi in Consumer Electronics: The Swiss Army Knife Technology

1H09 Wi-Fi Product Database

2Q09 Wireless LAN Tracker

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