1.1 Background of the Study
Technology has changed the landscape of the lives of the people. In creating opportunities from long distance learning and information exchange, cell phone has been one of the most wanted items for consumption. According to James Katz, professor of communication at Rutgers University, two billion people on the planet use cell phones. Having lots of brands resulted to a gain and a loss to each and every company that were in this line of business. In the Philippines, cellular phones could be seen anywhere. Nokia, being the market leader in the past years, seem to lose its market share in today’s generation. According to Miles, Nokia's moment in the spotlight as the leading Windows Phone device manufacturer seemed to be over.
This phenomenon started when the smartphones were introduced in the market. The industry for smartphones was led by well known companies like iPhone, Samsung, Sony, etc. In order to know the factors why this happened, the researchers decided to conduct a market research.
1.2 Statement of the Research Problem
Nokia once dominated the industry of mobile phones in the whole world. It pioneered the smartphone market using Symbian operating system in 2002. According to secondary research, the Finnish mobile phone maker was reported to have been continuously losing market share to its emerging competitors in the past years. Its leadership ended in 2007 when Apple launched iPhone.
In the Philippines, it was reported in the survey conducted by TNS Custom Research Inc. and Mobile Life that Nokia’s market share in Philippines declined from 70% (2010) to 64% (present). The focus of this research was to determine the reasons why there was a continuous decline in Nokia’s market share in the Philippines and to determine the current market situation of Nokia due to the emerging market of smartphones.
The specific problems of this study are the following:
1. How do smartphones affect the market of