Nokia is back on the Swiss mobile phone market

Arto Nummela, CEO of HMD Global, presents the new Nokia. (Image: Emilio Morenatti / Keystone (February 26, 2017))

The dead say they live longer. When Apple launched the smartphone market with its iPhones eleven years ago and found on the way to the success of Korea's Samsung-equipped high-end devices, the end of the former world market leader Nokia seemed to be sealed. The technology company Microsoft had to help the Finn struggling financially. After all, it's the Finnish electronics manufacturer HMD Global that brought Nokia back to life five years ago.

The first bulky models of Nokia are now cult. But even the latest Finnish models find their buyers in Switzerland. According to a study by comparative internet service Comparis, Finnish devices have become the number four in the Swiss market this month (see graph below). With three percent market share, the Apple and Samsung leaders for the Finns are out of reach. But Nokia has at least discovered the sinking.

Nokia has a strong brand and is well positioned

For the return of Nokia are mainly responsible for two causes, said telecommunications expert Jean Claude Frick. "The Nokia brand, on the other hand, still has a great appeal, and even for boys who have not had a good time with these mobile phones, it's a concept," says Frick. On the other hand, the company is evolving in a segment of quality and price very well received in Switzerland. "The Android models in the price range between 250 and 500 francs are adapted to the Swiss market. Cheap mobile phones at 100 francs are considered inferior, and more than 1,000 francs want to cost a smartphone to less consumers. Especially the Nokia 5 and 6 are selling well.

The two leaders Apple (iPhone) and Samsung hit differently compared to the previous year. Americans gained 3% of the market, Koreans lost the same amount. "Both have worked hard to occupy their top positions," says Frick. Apple meets the high purchasing power in Switzerland. They make high-end products affordable for a larger population than in other countries. Frick: "Adds that Apple was present with their laptop early.The brand was already well established when iPhones came on the market." The world market leader, Samsung, started more than 20 years ago , with cheap offers to shake the mobile phone market. Meanwhile, smartphones from the South Korean conglomerate are also successful in the middle and upper price ranges. Frick: "Samsung offers a wide range of prices and is also interesting for users who do not want to spend a lot of money on a device.

According to telecommunications experts, Samsung should have trouble staying behind number two behind Apple. "Apple is considered a premium product, as expensive as it is good, the Americans should be able to defend their leading position in the next few years, but the Chinese technology giant Huawei can now compete with Samsung. "I would not be surprised if Huawei leaves Samsung on the Swiss market in two or three years," says Frick with conviction.

Huawei conquers the global market

The Chinese have a strong home market and have sold nearly 50 million smartphones worldwide in the second quarter of this year alone. This equates to an annual growth of more than 13%. With the number of units sold, they put Apple on the world market in third place. Just like Samsung, Huawei is present in all price ranges today. Koreans are still at the top, but their sales stagnant, they lose market share mainly to Huawei.

Frick: "The rapid growth of Huawei is all the more surprising as the company is curbed in the US market and can not implement it." However, in terms of profitability, Apple is leading. "Americans account for 50 to 70 percent of the profits made by the industry," says Frick.