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KWP: Nokia’s “Strategy In Europe Working”

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Kantar World Panel have released their report for the three months ending January 2014 revealing a mixed bag of results, despite Nokia announcing a drop in sales of Lumia devices in Q4 2013 Windows Phone has managed to keep market share in double digits in EU5 and to grow in the USA against December figures.

Against Same Period Last Year

Looking at the market share compared to the three months ending January 2013 Windows Phone have grown in 8 out of the 10 markets covered in the report, the biggest in Britain where it has grown 4.9 percent points from 6.4% to 11.3%. Spain has also seen a pretty significant growth over twelve months from 1% to 5.3%. Windows Phone is the second biggest OS in Italy with a 17% share of smartphone sales. In EU5, which covers the 5 big European markets Microsoft’s platform has 10.1%, up from 6.1% a year ago. France also see’s pretty good growth now at 9.6%. In the USA Windows Phone has grown from 3% to 5%.

The only markets where share has dropped against last year is China where it went from 1.4% down to 0.7%. Japan also saw a drop from 0.6% to an unimpressive zero percent.

Against Last Month

Kantar release figure every month rather than every three months meaning we can see how these numbers compare to market share a month ago, which was the three months up to the end of December 2013. The table below shows how Windows Phone performed in these time periods.

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These figures show the effect of Lumia’s sales decline with only two markets increasing against numbers in December. Germany went up 0.9 percentage points from 5.9% to 6.8%. The other being the USA which grew 0.4 points, from 4.6 to 5%. Britain remained level on 11.3%. France dropped below 10% market share, with a 1.8 point decline to 9.6%.

The report attributes Windows Phone market share to sales of the Lumia 520, the best selling Windows Phone device of all time, and 4th best selling device in Britain in the months covered by this report:

Despite underwhelming fourth quarter results, Windows Phone has managed to hold onto double digit share across Europe for four consecutive months. Its success continues to be driven by Nokia’s budget Lumia 520 which was the fourth highest selling handset in Britain during the past three months, only just behind the Apple 5C.

Dominic Sunnebo, strategic insight director at Kantar Worldpanel ComTech commented on Nokia’s strategy:

“Nokia has continued its successful tactic of sucking up remaining featurephone owners across Europe. Even in Britain, where smartphone penetration is at 70%, there are over 14 million featurephone consumers for it to target. At some point Nokia will have to start making serious inroads into the smartphone competition, but for the time being its strategy in Europe is working. Crucial for Nokia will be its ability to keep low-end owners loyal and upgrade them to mid to high-end models.”

Source Kantar World Panel

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