Samsung worth more than Nokia

In the see-sawing competition to become “the world’s largest cellphone maker,” Samsung Electronics’ cellphone division edged past Nokia yesterday in market valuation, as shares of the Finland-based company dipped on Helsinki’s stock exchange. Nokia dropped 3.3 percent to 11 euros on Thursday, local time, bringing its market capitalization down to 51.3 billion euros ($66.5 billion). It was Nokia’s biggest fall in more than five months. Samsung Electronics’ market capitalization, on the other hand, rose yesterday to 71.6 trillion won ($69 billion) as shares climbed 1.3 percent to 486,000 won on the Korea Composite Stock Price Index. Its stock has risen about 9.5 percent after the firm reported record earnings for last year. In 2001, Nokia’s market capitalization was four times that of Samsung’s, but since last April, when Samsung first beat Nokia in market capitalization size, the two companies have been in a tug-of-war. In terms of sales, however, Nokia is still number one, followed respectively by Motorola and then Samsung. According to market research firm Garner Group, Samsung had 13.8 percent of the global market and Motorola 13.4 percent as of the end of the third quarter last year, but Motorola reported increased sales of $31.8 million in the fourth quarter last Tuesday, compared to Samsung’s $21.1 million, putting the U.S. cellphone maker back into second place. This year Samsung Electronics says it will invest 10.3 trillion won in facilities and 5.4 trillion won on research and development. Nokia will cut such costs by about 10 percent. by Wohn Dong-hee