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Nokia Vows Big
Nokia Vows Big 'Change' Is Coming Sept. 5

By Adam Dickter
August 29, 2012 11:07AM

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Nokia in the beginning of last year announced a partnership with Microsoft expected to be worth $1 billion to create and market new devices. With Samsung now hampered by Apple's successful claim of smartphone patent infringement against it and a possible U.S. ban of several Samsung Android-based devices, Nokia and Microsoft may sense an opening.

Like Barack Obama, Nokia is promising "change" as its Sept. 5 product launch with Microsoft nears.

The slogan "Things are about to change" headlines a YouTube video promoting the event in New York City which was announced last month as a follow-up to the Nokia World conference in Helsinki, Finland. The wordless video strangely shows only a woman in a red dress riding a bicycle in a ship repair area, with not a mobile device of any kind in sight.

It's a safe bet, though, that Nokiasoft, or Microkia, as the partnership may be called, will roll out some new hardware ahead of Apple's expected new iPhone launch a week later.

Winds of Change

The former global cell phone king, recently deposed by South Korea's Samsung, desperately needs for things to change as it banks on Microsoft's equally troubled Windows Phone platform to boost its flagging sales after giving up on its own Symbian operating system. Nokia's global market share in the second quarter was just seven percent, compared with Apple's 17 percent and Samsung's 32 percent, according to Strategy Analytics.

Google's Android operating system is at the top of the heap with 56 percent while Windows Phone was among "others" rated at just 4 percent, the company's survey found.

"Nokia's smartphone share has reached its bare bottom at this moment and the only place it can go from here is up," said Neil Shah of Strategy Analytics.

"I think the upcoming Windows Phone 8 Lumia lineup should help Nokia mitigate the shortcomings of the previous Windows Phone 7.5 version of the platform. Windows Phone 8 brings in whole new platform architecture built afresh, bottoms-up, enabling a seamless multiscreen experience across the Windows based products. "

Windows Phone 8 will allow Nokia devices to use advanced Bluetooth, mobile payments through near field communication and Mobile Wallet, better maps, better security for business users, and development support for native games as well as more powerful chips and high-definition displays.

"Thus, this bumps up Nokia's portfolio built on a differentiated and unique design to compete head-on with Android vendors and improve its market and mind share," Shah told us.

A study by ABI Research released Wednesday suggests that smartphone use for enterprise will grow 17 percent to 2.7 billion employee users by 2017, and Android's share could reach 56 percent.

"The question is, will new smartphones from Microsoft and RIM put more power in the hands of the enterprise concerning employee mobile device use, particularly for accessing corporate resources?" asked Dan Shey of ABI. "Such change would directly impact enterprise device market share."

A Gain from Samsung's Loss?

Nokia in the beginning of last year announced a partnership with Microsoft expected to be worth $1 billion to create and market new devices. Since then, Nokia has become the leading maker of Windows handsets in the world, though Windows devices are also made by rivals such as Samsung and Dell.

With Samsung now hampered by Apple's successful claim of smartphone patent infringement against it and a possible U.S. ban of several Samsung Android-based devices, Nokia and Microsoft may sense an opening.

"Apple and Samsung are well positioned in terms of their iPhone and Galaxy brands for near- to mid-term," Shah said. "However, if Apple is successful in achieving a ban on the mid-tier Samsung Galaxy Android smartphones in the USA, then it could indirectly help Nokia increase its presence in the U.S. market at the expense of Samsung."

If not, he said, any Nokia growth would come at the expense of Research In Motion, HTC and other smaller rivals.

Tell Us What You Think



Posted: 2012-08-30 @ 5:48pm PT
THe Author is mentioning about share of smartphones alone. In total phone sales (feature and Smart) Nokia is still the king. Nokia also has a strong patent portfolio so that it can obviosuly use along with Microsoft to reign supremen and get royalty payouts from other smartphone makers of Windows phone.
Strategy which Nokia is utilizing is to have 2 tier of smartphones (High end with windows and lower ends with symbian ). THe cheaper ones Nokia Asha series are already being received well in the asian sub-continenet and are a hybrid of feature and smart phones.
Apple/Samsung gained the share in smartphones as Nokia only had phones with symbian now once it gets Windows it can compete both in high end and low end.
6 months down the line it should be good. Also do not forget Navteq the organization which supplies maps to all leading cars like Audi, Acura Honda TOyota is owned by Nokia so their mapping is far superior to Google or any other provides on the phones


Posted: 2012-08-29 @ 8:59pm PT
Commercial likely filmed with new lumia phone otherwise it makes no sense

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