Nokia looks to retliate as samsung has given them a thorn in the flesh in the smartfone industry. Nokia plans to hit back with a series of launches. Will this work for them?
Former managing director of Nokia, now the senior VP IMEA markets, and his top management team met in an annual strategy discussing how the Finnish hanfone gaint will launch back into the smartfone market.
Samsung surprised Nokia in a sudden market sweeptakes that hurts Nokia so much, that since 1998 for the first time, it has lost the number of one slot in sales.
The korean electronics gaint,
Samsung in April annnounced a worldwide shipment of 93.5 million mobiles as at the first quater of 2012 compared to Nokia’s 82.7 million. Samsung claims 45% market share in India and is readily leading. the smatphone market grew by 87% in 2011 says CyberMedia research.
Nokia is presently strulggling to strike the balance. Showcasing the magical Nokia 808 PureView, with 41 mega pixel is more camera than just phone (typically phones have a max of 8-12 MP), Director, Smart Devices, Mr Vipul Mehrotra shows a pix of an IPL match with fan crowded the stadium. When he zoomed in on a miniscule figure in the first row, the back of Shah RuKh KHan was shown as if the picture was from two rows behind. Crystal clear, no diffused image.
The phone has been in making for 5 years, and is developed using the satellite imaging tech. Mr Shivakumar says in an interview, “Imaging is big in phones, People snap a lot and transmit a lot. This is kind of a hot leadership credential innovation.”. The
phone is expected to be launched in mid June and expected to price around Rs 30,000.
Samsung has set a target of capturing 60% of the Indian smartphone market share by value, already it is having 45% currently, giving the Korean company an unbeatable rekord.
Samsung India head of mobile and IT, Mr Yadav exposed how they intend to achieve the dream. For exaple, the phone maker has manufactured a completely new market section called Phablet with its Galaxy Note, a device that combines the smartphone and a tablet.
Over 5 million Galaxy note was sold within 5 months of launch. “India is one of the top three strategic markets for Samsung. We continue to strengthen our product offering to our Indian consumers by launching innovative smartphones across different price points and multiple platforms,” Mr Yadav told Business Line. 19 smartphone models has been launched by Samsung.
India and China are the largest market for Nokia too, but its market shared has declined from 70% to 31% within 5 years. this places are also target as the centrepiece of its turnaround.
Nokia hopes to rise with the bundle of services on the Lumia, such as the Nokia city Lens and Nokia Music with Mix Radio, to strike the balance with its users.
Nokia’s Mehrotra is quite excited about the city Lens, which has Nokia Maps which can show interesting points to a viscinity of 25km.
WHERE DID NOKIA MISSED IT?
Mr Shivakumar says “The key is you’ve to be innovative and lead the consumer. It’s a hyperactive market that needs consistent innovation. We could not do that for a while and that’s why competition overtook us. We now hope to lead innovation with our new Lumia range; it’s a constant game.”
Samsung runs multiple OS, Android, Windows and Samsung’s own Bada operating system.
Mr Shivakumar says, “A new operating system is like a new religion.” Users will take time to adapt. “But we are growing the Microsoft ecosystem in India. A year from now, you will see a very different company. The Windows OS is at the stage that any other OS was in its life-cycle,” he emphasises referring to its Windows-based Lumia phones.