As of the third quarter of 2013, Gartner reported that Windows Phone holds a worldwide market share of 3.6%, up 123% from the same period in 2012 and outpacing Android's rate of growth.[141] According to Kantar's October 2013 report, Windows Phone accounted for 10.2% of all smartphone sales in Europe and 4.8% of all sales in the United States.[142] Some analysts have attributed this spike in sales to both Windows Phone 8 and Nokia's successful push to market low and mid-range Windows Phones like the Lumia 520 and Lumia 620 to a younger audience.[143] Gartner reported that Windows Phone market share finished 2013 at 3.2%, which while down from the third quarter of 2013 was still a 46.7% improvement from the same period in 2012.[144]
Unveiled in 2009, Bing has been a pain point for Microsoft. It faces tough competition from Google (GOOG)'s search engine, which has a market share of 66% in the search engine segment, while Bing takes second place with 17% market share. In the third position, Yahoo! adds in additional 11.4% market share for Bing, bringing the total to about 29%. To date, Microsoft has spent billions on research and development for this search engine, affecting its margins and leading to cumulative losses that are estimated between $11 billion to $17 billion since its inception.
Nokia Lumia 520 Claims Nearly A Third Of The Total Windows Phone Market
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Beyond Nokia, the US smartphone market is very homogeneous - Apple and Samsung are nearly even with a third of the market each. Apple has a 0.1% lead but has barely grown in the last year, while Samsung has gone 10 points up from 26.6% in Q2 2012. The next biggest vendor is LG in third place with 8.6%.
The European market is important for Windows Phone since countries such as Italy, Germany have done impressively well and have even exceeded the market share of Apple Inc. (NASDAQ:AAPL) iOS. At present the market share of WP OS stands at 9.2% in the top five European countries. Windows phone has grown steadily at the expense of Apple in several European countries, and the emergence of a third viable ecosystem has also shifted perceptions towards Windows Phone in Europe. When taking Europe as a whole, the Lumia 520 had a market share of 31.8%, while the Lumia 625 has the second most popular device with a market share of 9.8%.
But did you know that Microsoft surpassed Blackberry's market share in 2013, and shipped more than 10 million devices in Q4 of last year? Or that Windows Phone doubled its global smartphone OS market share in Q3, to just under one-third of Apple's? Now that it owns Nokia, there's little reason to believe that Microsoft will not do everything in its power to continue this momentum. And if you doubt its conviction, the software giant recently announced that it will drop the Windows royalty fee for devices with screens below nine inches. Perhaps it's a bit early to crown Android the victor in the battle for smartphone supremacy.
The smartphone war still feels like a two-man race right now, with the iPhone and Android devices dominating the market. Is there still room for a third contender? And if so, is Nokia's Lumia 900 good enough to make Windows Phone 7 the next big thing?
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