Nokia has had a largely positive response to its new Asha mobile phone and Lumia Windows 8 smartphones, but it still lost ground to its rivals, seeing its market share dropping to an all-time low of 18 per cent.
Nokia achieved 39.3 million smartphone sales worldwide in 2012, down a hefty 53.6 per cent on 2011. Gartner believes that Nokia needs to build on momentum around Asha in 2013 by adding devices and apps to further enhance its overall value proposition.
Android smartphones dominated Q4 with a 69.7 per cent market share, followed by iOS (20.9 per cent), Research in Motion (now BlackBerry) with 3.5 per cent and Microsoft with three per cent.
"2013 will be the year of the rise of the third ecosystem as the battle between the new BlackBerry10 and Widows Phone intensifies," said Gupta. "As carriers and vendors feel the pressure of Android's strong growth, alternative operating systems such as Tizen, Firefox, Ubuntu and Jolla will try to carve out an opportunity by positioning themselves as profitable alternatives," he added.
Gartner said that mobile phone sales to end users totalled 1.75 billion units in 2012, a 1.7 per cent decline from 2011 sales.
Gupta suggested this was down to tough economic conditions, a shift in consumer preferences and intense market competition.