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Nokia seen gaining from Motorola woes

"A little bit went to Sony Ericsson. A lot went to somebody else, probably Nokia."

Analysts said earlier this month they expected surging cellphone demand from emerging markets to have cemented Nokia's leading position in the April-June quarter.

Motorola said it shipped 35-36 million handsets in the quarter, down from 45.4 million in the first three months, which could see third-placed mobile maker Samsung Electronics (005930.KS: Quote, Profile, Research) knock Motorola from its No. 2 ranking.

Before Motorola's profit warning, Nokia was forecast to have sold around 100 million handsets in the quarter.


"Motorola's market share is coming down strongly and it could continue ... As it comes down, Nokia benefits directly from the vacuum in the market left by Motorola," Danske Markets analyst Ilkka Rauvola said.

"Sony Ericsson said competition has tightened and I think this is due to Nokia having ramped up its mid-range and high end products," Danske's Rauvola said.

Shares in Samsung rose on Thursday on expectations ahead of its second-quarter results announcement on Friday.

HELSINKI, July 12 (Reuters) - Market share of the world's top mobile phone maker Nokia Oyj (NOK1V.HE: Quote, Profile, Research) is rising, industry analysts said, after its closest rival Motorola Inc (MOT.N: Quote, Profile, Research) warned investors of a second-quarter loss and lower sales.

Analysts said U.S.-based Motorola had lost market share, much of it probably to Nokia, which sells more than one in three cellphones in the world, news that lifted the Finnish firm's shares.

Nokia was up 1.2 percent at 21.21 euros by 0827 GMT, against a DJ Stoxx technology index <.SX8P> up just 0.2 percent.


"With Motorola losing market share in several regions -- Europe and Asia -- I think the biggest beneficiary is Nokia," FIM Securities analyst Jussi Hyoty said.

"Nokia has a very strong product mix from the bottom to the top, this is a good chance to put distance between it and the number two and increase scale benefits."

Motorola said on Wednesday it no longer expected its mobile phone business to be profitable this year, blaming weak sales in Asia and Europe. Click on story at [nN11407807]

"Motorola lost a lot of share," Charter Equity Research analyst Ed Snyder told Reuters, after the U.S. company warned investors on profits and rival Sony Ericsson (6758.T: Quote, Profile, Research)(ERICb.ST: Quote, Profile, Research) released its second quarter results.

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