Nokia Announcement to Enter Cellular Modem Market is a Lesson in Market Oriented Strategic Planning

Author: Dan Shey, Practice Director, Mobile Services

Published: 17 Feb 2009

Nokia recently announced that it will join the cellular modem market in 2009 offering its own HSPA modem — presumably a USB type based on HSDPA technologies. Considering that 2008 saw price competition play a major role in the cellular modem market, it may seem odd that Nokia would enter a sector that already has 26 competitors. Compounding this seemingly odd decision is the fact that shipment volumes of cellular modems are low relative to handsets. If Nokia maintains its current 40% worldwide handset market share in 2013, why would it enter a crowded marketplace with a new product that has a fraction of the shipment volume?

The full text of this Insight is available to subscribers of the Cellular PC Modems Research Service.

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