Nokia's Smartphone Challenge

In the first quarter of 2009, Nokia shipped 13.7 million smartphones, down from 14.6 million a year earlier and 15.1 million in the fourth quarter. Nokia shipped 2.6 million of its touch-screen 5800 XpressMusic smartphone, which is designed to win back market share from Apple Inc.’s iPhone. Nokia has struggled in the high-end smartphone segment against Apple’s iPhone and Research In Motion Inc.’s BlackBerry models. Nokia’s global market share in smartphones fell 10 percentage points to 40.8 percent in the fourth quarter, while RIM and Apple gained, according to researcher Gartner Inc. In smartphones, which can run computer-like programs and access the Internet, Nokia’s market share increased to 38 percent in the quarter from 31 percent the previous quarter.