Nokia retains the title of biggest handset maker in terms of units sold, shipping 108.5 million mobile devices in the first quarter compared to Apple's 18.6 million iPhones. But Nokia's lack of presence in the lucrative high-end smartphone market, and its subsequent reliance on its basic phone business, means thinner profit margins.
But while Apple may have topped the phone maker by revenue now, Nokia's sheer volume may hold the key to its resurgence within the next couple years.
Research firm Gartner recently predicted that the newly inked partnership between Nokia and Microsoft to develop Windows Phone 7 handsets will propel it ahead of Apple by 2015. That combined with Nokia's massive non-smartphone business catering to developing markets could see the company retake the top revenue spot.
On the other hand, smartphones themselves will become cheaper and more accessible, which could cut into Apple's margins as well. Gartner predicts a democratization of the surging smartphone industry will favor lower-priced options, and predicts that by the end of 2015, the average smartphone will cost no more than $300 before carrier subsidies.
Apple could develop a lower-priced iPhone, which reports indicate may already be in the works, but it would probably come with smaller revenues as well.
The news of its top billing in handset revenues comes a day after it announced yet another exceptional first quarter exceeding analysts' estimates.
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