At the beginning of 2013, the phrase ‘battle for a third ecosystem’ became the staple in smartphone circles. Both Nokia Corporation (ADR) (NYSE:NOK) and Research in Motion Ltd (NASDAQ:BBRY) have been pushing relentlessly for market share in a bid to emerge third in a race largely dominated by Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG).
far, the odds are stacked up against Research in Motion Ltd (NASDAQ:BBRY). Although critics argue that the negative media on Research in Motion Ltd (NASDAQ:BBRY) is for the most part a put-on influenced by short sellers, an objective look at the industry suggests that in as much as Research in Motion Ltd (NASDAQ:BBRY) could be doing well, Nokia Corporation (ADR) (NYSE:NOK) is doing better. And for investors, that’s all that matters.
U.S. market still a very strong indicator
Research in Motion Ltd (NASDAQ:BBRY) has done remarkably well in its Canadian home market as well as in the European market. Nonetheless, the muted U.S. response is not something that can be easily swept under the rug. Not only does the U.S generate a sizable chunk of global smartphone sales, but it also acts as a global indicator of product reception.
It would be unreasonable to compare Research in Motion Ltd (NASDAQ:BBRY)’s U.S. market share year on year. The Canadian tech gem only started its turnaround recently. Nonetheless, it would be worthwhile to look at how the BlackBerry platform has trended in the U.S. from the beginning of the year.
According to comScore, BlackBerry lost 0.8 percentage points between February and April. During this three month period, its market share dipped from 5.9% to 5.1%, representing the biggest slump among its peers. In the same period, Microsoft Corporation (NASDAQ:MSFT), which is the platform that supports Nokia Corporation (ADR) (NYSE:NOK), lost 0.1 percentage points to come in at 3% of the market. Microsoft Corporation (NASDAQ:MSFT) is the platform that lost the least market share, while Apple Inc. (NASDAQ:AAPL)’s iOS was the only platform that posted growth, gaining 1.4 percentage points to come in at 39.2% of the U.S. market.
While BlackBerry’s prospects in the U.S. remain uncertain, Nokia Corporation (ADR) (NYSE:NOK) is riding on the back of Microsoft to enhance market penetration. Reports relating to late May indicate that its recently unveiled Lumia 928 sold out within the first two weeks at Verizon Communications Inc. (NYSE:VZ) and RadioShack Corporation (NYSE:RSH). The availability of the Lumia 928 on Verizon Communications Inc. (NYSE:VZ) does a lot to enhance Nokia Corporation (ADR) (NYSE:NOK)’s smartphone footprint. Initially, the Lumia 920, which is an equally complementary smartphone, was only available on AT&T Inc. (NYSE:T). The current improved availability presents a chance for Nokia Corporation (ADR) (NYSE:NOK) to delve deeper into the market and rope in more customers.
