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Showing posts with label nokia. Show all posts
Showing posts with label nokia. Show all posts

Saturday, April 28, 2012

How Samsung Became The World’s Top Handset Vendor

latest samsung mobile
Products by Samsung

It sounds like Nokia’s classic ringtone just got a few octaves lower and sadder. Friday, Strategy Analytics revealed the Finnish phone-maker had been ousted from its lofty position at the top of the cellphone food chain. Samsung just became the leading shipper of mobile phone handsets in the world. How did this happen? The same way a runner in any race pushes to the front: He speeds up, or the other guy slows down. Sometimes both happen at once.

There’s a kind of morbid fascination involved in watching a formerly great goliath stumble: we’ve seen it over the past few years in the mobile space with RIM and Palm (and then HP), but seeing Nokia trip over itself has been akin to witnessing a revered grandfather fall down the stairs. Nokia practically created the mobile phone industry; until recently its brand name was unassailable in most parts of the world, with the curious exception of the United States.

The nature of their missteps has been well-documented, but suffice to say that Nokia CEO Stephen Elop made some difficult choices. He made these choices rather publicly in his “burning platform” memo of February 2011, which, depending on who you ask, either told some hard truths or needlessly eviscerated Symbian sales at a critical point in the company’s history. Whichever view one takes, the fact remains that Nokia didn’t start shipping devices built on its new OS of choice, Windows Phone, until much later in 2011. Perhaps it was unavoidable, but that delay cost them dearly.

As is usually the case with platform wars, the data isn’t exactly clear regarding all the factors surrounding Nokia’s decline. It’s true that the Windows Phone platform has been slow to gain traction, but Nokia was also woefully behind in developing a replacement for Symbian -or even in realizing that a replacement for Symbian was needed- before Elop showed up. To anyone paying attention, the decline seemed inevitable, given the company’s lack of agility.

Seeing Nokia reinvent itself, with the accompanying beautiful design work coming from its hardware division, has been truly incredible; speaking personally as a consumer, the N9 and its derivatives are the reason I started noticing Nokia. But beautiful design and the most interesting innovations, while an indicator of potential greatness, are lousy at arresting downward momentum. A fall from grace was overdue, and it’s finally materialized. After watching storm clouds gathering on the horizon for months, a massive 24% decline in handsets shipped year-over-year is Nokia’s barometer finally crashing into the basement.

So it was only a matter of time before Nokia lost the number-one spot. But the king who loses the crown is only half the story. What steps did the new guy take to snatch it from his head?

Samsung’s current lead over Nokia is in part a byproduct of its war with Apple. In an editorial a while back, I talked about the voracious appetite of second-place companies. There, the conversation was smartphone mind-share, and the leader was Apple, but the second place contender was still Samsung:

    “… Marketing head Younghee Lee recently said, ‘Especially in U.S., people are obsessed with Apple … It’s time to change people’s attention.’ One need only look at the recent patent and advertising war between the two giants to confirm it: Samsung covets Apple’s leading mindshare position in that special way that only a second-place contender can. They’ve got their eye on the prize, and they’re fighting for it.”

Samsung’s approach to satiate that hunger for success has been unexpectedly multifaceted: instead of focusing its efforts on innovation, marketing, or emulation, it’s done all three.

Look at what Samsung has released in just the past year and a half. The Galaxy Note, initially considered a novelty item or a target of mockery by many (myself included), sold 5 million units in five months. It carved out a new “phablet” category not just for itself, but for a host of imitators. “Note”worthy indeed, and not bad for a device many thought was DOA.

The company brought the same zeal to the second coming of its popular Galaxy S smartphone series, once again blasting carrier after carrier with premium versions and midrange derivatives. Where the original Galaxy S devices still suffered a tad of stigma from “regular” consumers associating it with an iPhone knockoff, the growing brand prestige of Samsung had eliminated any such comparisons by the time the Galaxy S II line debuted.

Apple, much more potent a competitor than Nokia but equally as sluggish, refused to incorporate larger AMOLED displays, giving Samsung some purchase for easy visual differentiation. Once buyers’ eyes were attracted by the larger devices, they were drawn in further by the promise of the Android ecosystem and the more advanced capabilities of the Samsung devices, further reinforcing the Samsung brand perception.

At the same time, that brand was being heavily pushed by an aggressive marketing approach. Samsung was taking jabs at — and in some cases openly insulting — iPhone users, a controversial tactic it continues even today with its “The Next Galaxy” teaser. The company isn’t afraid to ruffle some feathers in the name of increased mindshare, and judging by its new title, it hasn’t hurt them much.

Even the “bad press” seems to be working in Samsung’s favor. I’ve talked before about my lack of enthusiasm for some of Samsung’s “me-too” products; sometimes it seems like they’re brazenly copying the competition. Some elements of the competition seem to think so too, as Samsung’s been the target of numerous lawsuits recently. But all the accompanying exposure in the media is doing something invaluable: it’s keeping their brand name on people’s screens and in their minds. Ironically, the alleged untrustworthy conduct (copying) is working in concert with its impressive product portfolio to cement the Samsung’s brand name as a trusted one, at least when it comes to mobile phones.

These massive upheavals don’t happen often. They’re the result of years and years of hard work and determination on the part of one company, and stagnation or mismanagement on the part of another. The last time the number-one spot on mobile handset vendors list changed was 1998, when Nokia dethroned Motorola. Fourteen years is an impressive run.

That’s not to say this change is permanent; it’s a volatile and unpredictable market. Nokia and Samsung are very different companies who couldn’t possibly be taking more disparate routes to success. And at the moment, the results they’re seeing are very different, as well. But the fact that Samsung is now the market leader shouldn’t be perverted into a reason to condemn Nokia’s new strategy; Nokia’s midstream shift was violent, and will take a long time to recover.

The longer it takes, though, the more opportunity Samsung has to continue leveraging its considerable advantages to stay on top. Given the uncertainty surrounding Nokia, it’s anyone’s guess when or if we’ll see it on top again. But judging by past performance and looking at who’s sneaking up behind Nokia (a certain Cupertino company), we may see a shift in the second- and third-place slots before we see another change in the first.


News by Mashable

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Monday, February 27, 2012

MWC 2012: Nokia reveals 41MP cameraphone

Nokia 808 smartphone
Nokia 808 Pureview
A 41-megapixel Nokia smartphone was among the new technology on show during the opening day of Mobile World Congress in Barcelona.

The 808 Pureview offers enhanced low-light performance as well as sophisticated image compression designed to help users share pictures.

Nokia hopes to regain ground lost to Google and Apple in the mobile market.

However, some have criticised Nokia's decision to use its own operating system, Symbian, on the device.

Nokia's other smartphones typically run on Microsoft's Windows Phone software.

Symbian, which first appeared on Nokia phones in the 90s, is widely regarded as inferior to the app and social media-driven Windows Phone system.

"The Pureview 808's Symbian Belle operating system might detract from its appeal to a broader market, where it deserves recognition," said Tony Cripps, a principal analyst with Ovum.

"It's a pity that Nokia was unable to combine the photographic prowess of the PureView 808 with the style of the Lumia 900.

"Such a device may well have been the first smartphone to truly deserve the title of 'superphone'."
'Breathtaking'

Nokia claims the 808 sets a "new industry standard" in mobile imaging devices.

"People will inevitably focus on the 41 megapixel sensor," said Jo Harlow, executive vice-president of Nokia smart devices.

"But the real quantum leap is how the pixels are used to deliver breathtaking image quality at any resolution and the freedom it provides to choose the story you want to tell."

The BBC's technology correspondent Rory Cellan-Jones said he expected some consumers would be surprised over the choice of platform.
Nokia say the 808 will set a "new industry standard"
"Nokia's put this on a Symbian phone, which will seem strange to people," he said.

"It's also pretty chunky, pretty heavy - but it does take amazing pictures."
China push

Also on show were new models in the company's Lumia range - including the 610, a cheaper device aimed at a "younger audience".

The firm also announced it plans to make the Lumia available in China "in the coming months".

Nokia's chief executive Stephen Elop said that introducing the cameraphone and entry-level smartphone were "the actions necessary to improve the fortunes of Nokia".

Once the mobile world's dominant player, Nokia has struggled to compete as sales of Google and Apple devices have soared in recent years.

Last month Nokia announced it was to stop manufacturing mobile phones in Europe, instead relocating to Asia at a cost of 4,000 jobs.

News By BBC

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Tuesday, January 10, 2012

Samsung confident of outselling Nokia in 2012

samsung mobile
Samsung Store
(Reuters) - Samsung Electronics Co is confident it will become the world's largest cellphone maker in 2012, ending Nokia's 14-year reign on the mobile handset market, its chief executive said.

Samsung, which became the world's No 1 smartphone maker in the third quarter of 2011, is quickly building on its supremacy with sleek designs and a rich product lineup, while the latest models from the likes of HTC, Nokia and Research In Motion struggle to interest consumers.

Samsung chief executive Choi Gee-sung told reporters in Las Vegas on Monday the company overtook Nokia in revenue terms in its latest reported quarter and was confident of topping the Finnish group in shipments this year.

That would mean another defeat for Nokia, which lost its decade-long dominance in smartphones to Apple in the second quarter of 2011.

Finland's Nokia rose to the top of cellphone industry in 1998 when it overtook Motorola in phone sales, and has since been the driver for the Nordic economy.

Samsung's bullish forecast is in line with some analysts, including Royal Bank of Scotland, betting Samsung would build on its momentum to overtake Nokia in 2012, but on average analysts have expected Nokia to keep its lead on the market.

According to the latest polls by Reuters, Nokia was expected to sell 418 million phones in 2011, versus Samsung's 320 million, the gap narrowing this year to 388 million versus 359 million.

The South Korean firm -- the world's biggest technology company by revenue -- said in early December its 2011 handset sales reached 300 million handsets for the first time, mainly led by a near four-fold jump in smartphone sales.

"Considering how strong Nokia still is in the emerging markets, Samsung's expectation seems to imply that Nokia will miserably fail in mature markets," said Gartner analyst Carolina Milanesi.

Analysts expect cellphone market growth to slow in 2012, with weak demand seen in Western Europe, but stronger demand for emerging markets, which have historically been Nokia's stronghold.

"I think it will be hard for Samsung to beat Nokia without more aggressively targeting emerging markets," Milanesi said.

Choi also said Samsung was likely to meet its 2015 sales target ahead of schedule and plans to increase investment this year.

"With the current sales growth rate, we are likely to... achieve the 2015 sales target of $200 billion earlier," Choi told reporters.

Samsung last week reported a 6.5 percent rise in 2011 revenue to 164.7 trillion won ($141.54 billion).

($1 = 1163.6500 Korean won)

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Wednesday, November 16, 2011

Nokia exec: Windows 8 tablet due in June

nokia lumio 800
The Nokia Lumia 800 Windows Phone-powered device
Nokia will add a Windows 8 tablet to its product line in June 2012, a French newspaper reported in an interview with the head of Nokia in France.

"In June 2012, we will have a tablet running Windows 8," Paul Amsellem told Les Echos in a story published yesterday.

Such a move would make some sense. Where Android and iOS span phones and tablets, Microsoft's Windows Phone operating system doesn't. But ignoring the tablet market would shut Nokia out of a major growth industry, and Microsoft is the obvious partner, even if it means Nokia must wrestle with the complexities of having two major operating systems.

Reached for comment today, Nokia spokesman wouldn't confirm or deny Amsellem's statement, but did say, "We have not announced any plans relating to tablets."

Last month, Nokia Chief Executive Stephen Elop wouldn't comment on Windows 8 tablet plans, but he left the door wide open when discussing earnings results with analysts.

"From an ecosystem perspective, there are beneftis and synergies that exist between Windows and Windows Phone," Elop said. "We see that opportunity. We'll certainly consider those opportunities going forward."

And in a later interview with the Financial Times, he pointed more specifically to the similarities in user interface between Nokia's newly launched Lumia line of Windows Phone products and the upcoming Windows 8 operating system.

Nokia has services it could bring to a Windows tablet, of course. But the synergies aren't always easy: Programs written for one operating system don't run on the other, so spanning the two devices means a lot of work for app developers.

Amsellem likened the new Nokia Lumia 800 Windows Phone to a BMW, saying that higher-end and lower-end models will arrive soon. Nokia already showed off the lower-end Lumia 710, and at Nokia World said higher-end models would arrive as well, but it's not shared details so far.

News by CNET

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Wednesday, October 26, 2011

Nokia unveils its first Windows smartphones.

nokia smartphones
Nokia's Smartphones for Windows
LONDON (Reuters) - Nokia on Wednesday unveiled its first smartphone using the operating system from Microsoft, the world's largest manufacturer of mobile phones hoping to get back into the race with Apple and Google. The two new smartphones, one analyst said they did nothing special, on sale in major European markets for the period of Christmas and are a first step in the Finnish giant's strategy to renew with success. 

The top model Lumia 800, including easy access to social networks like Facebook and video playback in high definition, will be offered at a price of 420 euros excluding promotional premiums, down to the Apple iPhone but above the prices of many devices with Google's Android system. It also includes the full version and free navigation system highly anticipated Windows users.

The basic version, the Lumia 710, 270 euros will be sold. "These handsets are a good start, but in reality they are only fairly basic products using Windows Mobile," said Ben Wood, research director of CCS Insight, a British firm of consultants specializing in telecommunications. "This is a positive development but the recovery of this lucrative market in which Apple and Android are securely installed is a Herculean task," he warns
Nokia, Apple and Google have overtaken the growing market for smartphones, has decided to abandon its platform in favor of the aging Symbian operating system from Microsoft, a risky initiative that had frightened investors in February.