Samsung Displaces Nokia as Top Cellphone Brand in 2012

Samsung set to seize the mobile phone market’s top rank. First time in 14 years, wireless communications giant Nokia will not sit atop the global cellphone business on an annual basis at the end of 2012.

A report from research firm IHS iSuppli, Samsung is expected to account for 29 percent of worldwide cellphone shipments, up from 24 percent in 2011, Nokia’s share this year will drop to 24 percent, down from 30 percent last year. Apple is ranked third, with its market share growing to 10 percent from 3 percent last year.

“The competitive reality of the cellphone market in 2012 was ‘live by the smartphone; die by the smartphone,’” said Wayne Lam, senior analyst for wireless communications at IHS. “Smartphones represent the fastest-growing segment of the cellphone market—and will account for nearly half of all wireless handset shipments for all of 2012. Samsung’s successes and Nokia’s struggles in the cellphone market this year were determined entirely by the two companies’ divergent fortunes in the smartphone sector.”

IHS iSuppli reported that HTC and RIM face challenges along with Nokia. HTC is facing a tough battle against Samsung, an acknowledged technology powerhouse, in the Android smartphone market. Market share for HTC will shrink to 5 percent in 2012, down from 9 percent in 2011.

Global smartphone shipments are set to rise by 35.5 percent this year, while overall cellphone shipments will increase by approximately 1 percent. This rapid growth will propel 2012 smartphone penetration to 47 percent, up from 35 percent in 2011.