It's Official: Apple Is Destroying Nokia

The numbers are in, and they're either awesome or ugly. Your perspective depends on which stocks you own. If you've invested in either Nokia (NYSE: NOK  ) or Research In Motion (Nasdaq: RIMM  ) , you have my sympathies. If you've invested in Apple (Nasdaq: AAPL  ) , Google (Nasdaq: GOOG  ) , Samsung, or HTC, congratulations. You're looking particularly handsome today.

For the first time since the introduction of the iPhone in 2007, Apple leads IDC's quarterly smartphone market-share tracker.

Vendor

Q2 2011 Shipments

Q2 2011 Market Share

Q2 2010 Shipments

Q2 2010 Market Share

Change*

Apple 20.3 mil. 19.1% 8.4 mil. 13.0% 141.7%
Samsung 17.3 mil. 16.2% 3.6 mil. 5.6% 380.6%
Nokia 16.7 mil. 15.7% 24.0 mil. 37.3% (30.4%)
Research In Motion 12.4 mil. 11.6% 11.2 mil. 17.4% 10.7%
HTC 11.7 mil. 11.0% 4.4 mil. 6.8% 165.9%
Others 28.1 mil. 26.4% 12.8 mil. 19.9% 119.5%
Total 106.5 mil. 100.0% 64.4% 100.0% 65.4%

Source: IDC.
*Year over year, in shipments.

Looks like this headline was more prescient than I ever could have imagined. (Or intended, frankly.) Apple is one of only three vendors to outgrow the overall market, with the other two -- Samsung and HTC -- being Android licensees.

Of the others, I suspect this hurts Nokia most. The one-time Finnish phenom has yielded more than 20 percentage points of smartphone market share over the past year, lending context to last month's awful earnings report. The data also makes CEO Stephen Elop look smart in partnering with his old employer, Microsoft (Nasdaq: MSFT  ) , to bring Windows to Nokia handsets -- although, to be fair, some of Nokia's drop is due to the uncertainty of selling Symbian models when the company is looking to abandon the platform.

Do you agree? Disagree? Weigh in using the comments box below, and if you're interested in more top stock ideas, try this free special report. In it, you'll get the details on five stocks The Motley Fool has put real money behind. Get your copy -- it's 100% free.

Fool contributorTim Beyers is a member of theMotley Fool Rule Breakers stock-picking team. He owned shares of Apple and Google at the time of publication. Check out Tim'sportfolio holdings andFoolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insightsdelivered directly to your RSS reader.

The Motley Fool owns shares of Apple, Microsoft, Google, and Research In Motion.Motley Fool newsletter services have recommended buying shares of Apple, Microsoft, and Google, creating a bull call spread position in Apple, and creating a covered collar position in Microsoft. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy.


Read/Post Comments (5) | Recommend This Article (6)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 05, 2011, at 8:00 PM, Superstef wrote:

    Apple isn't destroying Nokia. Nokia is destroying Nokia.

    It's had plenty of time to evolve a strategy that would have avoided the pain it is now feeling.

    Apple's just doing its thing. Building the best products it knows how to build and placing them in a compelling eco-system that people respond to. Desire is a powerful motive. That's what Apple taps into.

  • Report this Comment On August 06, 2011, at 1:40 PM, etgh wrote:

    Interesting that RIM, who apparently is going out of business next week, actually increased its shipments YOY.

    Considering they haven't announced any new products during this period, they've done pretty well.

  • Report this Comment On August 06, 2011, at 2:58 PM, etgh wrote:

    You must be referring to the Ardenne Offensive were the new German Tiger II tanks were first seen. They did roll over the Allies until better weather allowed aircraft to gain the upper hand and Patton's 3rd Army relieved Bastogne in the German's rear.

    Among the 600 tanks on the German side was the Tiger II. The Tiger II weighed in a 55 tons with a 88mm main gun of which a total of around 491 produced. They were up against 400 Shermans weighing in at 35 tons with a 76mm low or high velocity (Firefly version) main gun. Production run on the Sherman, in all variants was 53,000 units.

    The German tanks were overwhelmingly technically superior to anything the Allies had but were defeated simply by trading 10 Allied tanks for every one German in a battle of attrition. If Germany was able to produce more of these tanks (along with the Type XXI submarine) we would all be speaking German today.

    So your comparison of RIM to the Tiger tank is interesting, but not quite accurate, unless you're saying RIM products are more technically advanced than anything on the market today.

    I can't imagine you ever admitting to that...

  • Report this Comment On August 07, 2011, at 8:23 AM, BR14 wrote:

    Apple isnt destroying Nokia. You must be in their employ to write something that inaccurate.

    Android on the other hand could be.

    In fact we're seeing the dumping approach of Samsung, LG etc paying off in market share, although sadly for their investors it doesn't translate into profits.

    And Nokia is still the worlds largest cell phone manufacturer, just.

  • Report this Comment On August 08, 2011, at 5:13 PM, rfaramir wrote:

    Nokia partnering with Microsoft is like a drowning man grasping at an anvil. Maybe they'll get lucky and be able to walk along the bottom towards shore?

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