Nokia Blindsided By iPhone, BlackBerry -- No 'Credible' Answer
Why? Well, for one, the Western European cellphone market, where Nokia does a lot of business, isn't doing so hot. But now Nokia has Nokia-specific problems, too -- it's about to see a lot more competition at the high end of its business from Apple's iPhone 3G and new 3G BlackBerry gadgets from Research In Motion (RIMM).
Earlier this week, Nokia unveiled two new phones designed to compete in the high-end, business smartphone market, the E71 and E66. But AmTech analyst Mark McKechnie says the new phones still aren't a "credible response" to RIM and Apple. (Based only on the pictures we've seen, and what we know about the strength of the iPhone and RIM's email system, we agree.) And McKechnie says European brokers are now "voicing concerns of competition at the high-end," too.
Why does this matter? Because Nokia's smartphone business, while small unit-wise, means a lot to the company's sales and profits. The 7% of Nokia's phones that sold for more than $300 last year represented 15%-20% of its cellphone revenue and 20%-25% of its gross profit, McKechnie says. So if Apple's expansion into Europe and Asia -- and new phones from RIM -- cut into Nokia's high-end smartphone sales, it's in trouble.
See Also:
Where Nokia Could Fail: Competing With Apple And RIM
What 3G iPhone? Expect Another Beat And Raise From RIM
What they need is a complete reboot in their smartphone operation, not just some evolutionary improvement, since the many knives they wield are of no use in this new gunfight.
Still well done for trying.
Have not had a chance to play with N95/96 myself, so will withhold judgment, but does anyone here with knowledge want to compare/contrast N series/Symbian to iPhone/OS X?
Take the Nokia N-Series phones. They are way ahead of the iPhone (old and new) and I speak for the Nokia N95 phone as I have one and have had it for over a year. There is no phone close to what this phone offers. So you are all taking a bunch of nonsense.
The N Series as Mark has kindly pointed out is very popular, more so than the old iPhone, because it's a phone with a lot going for it. e.g. Awesome 5mp Camera/Video, Super fast SDHC memory, Symbian open source OS, Plenty of applications, super fast 3G+ internet (of which the new iPhone is only just getting), GPS (which the new iPhone is only just getting ZzZzZzZ), MMS, VOIP, Bluetooth, all standard on the N95, music, video play, multimedia etc... I can continue, and some of those features are still missing on the new iPhone.
If you think the iPhone is more than a year ahead of the competition, then do yourself a favor and get a N series Nokia phone, then write valid comments on a website. If you can't back your statements with fact, then you shouldn't be writing your opinion here.
But what Apple has done is changed the expectations for subsidized mid-range to high-end phones. Apple is tiptoeing in; I have no doubt that a very high end phone to challenge the N95 is coming within the next year. Apple is also attempting to change the market from one where new phones (hardware) are bought every quarter, to one where users can continually expect new features via software and services (for the same phone); software and services being Apple's core competency. And by using the same OS on its phones and computers, it has leverage.
Nokia knows this; it's already diversifying, though very slowly, with Ovi. And working on a touch model. But it looks very slow compared to say, HTC, whose so-so copycat is already out.
These changes will further weigh on Nokia's ARPU and margins, which have already shrunk as Nokia is expanding more heavily into low-end phones for the EMEA and Asian markets. BTW, low-end phones is an area in which Apple won't go.
Having used both I opted for the N95 because it had the features I wanted. The iPhone UI is superior but there's just too much wrong with the rest of it for me - it's dependent on iTunes to load, doesn't support bluetooth transfer and has no memory hot swap facility. I know much has been made of the browser - and it's very good - but fundamentally it's still on a 3.5" screen and doesn't support flash. Good for a three minute browse but not for any longer.
The N95 isn't without it's problems - before the v2.0 firmware releases the N95's UI was slow and buggy and, although fixed, it still lags a bit (the N95 8GB with its extra memory is a good deal better). In addition the GPS, power management and camera needed tweaked. To Nokia's credit they addressed these points pretty quickly.
Much has been made of the iTunes app store but to me it's a big "so what?" since Symbian, WinMo and even Blackberry have huge catalogues of software and I just don't see the iPhone bringing anything new to the table. Looking at the apps available there are certain key ones you'd pay for, plus games and music; everything else is freeware.
As for operating system. The iPhone's was faster than the vanilla N95 and is about the same as the N95 8GB - don't know if that's the extra memory or not. After the v2.0 firmware my N95 has crashed twice which is comparable with my friend's iPhone.
I'll try out the iPhone 3G - but to be honest since it's the same unit with 3G and GPS I'm not sure it's going to add anything - and the N96 when it's released at the end of next month. Gut feeling is that it'll be the N96 I go for.
Apply new's entry into the market is news-worthy. That means it get lots of media headlines, people talking about it and natural growth off that exposure. But media is only part of the picture. I don't know the situation in North America, but go down to any mobile phone store anywhere in the world and you'll find lots of Nokia handsets with a wide range of prices, features and appeal to many different people - low/middle/high income, students, families, singles, retireds etc etc. That doesn't mean that Apple doesn't have a good product, but what it does mean is you're comparing a mass market consumer company with one that has more of a niche market, whose customers will stick to 'no matter what'.
You would do better to compare othe rmass market vendors - like Samsung (or maybe Motorola) or SE. The pressures/challenges/issues that they face is quite different to what Apple face in the mobile phone market.
Mark, the N96 by the looks of it is very similar to the N95 but with a better interface and TV. Nokia are definitely going to up their game and bring out something to make everyone go Wow again, and I don't think the touch screen will be it, because do most ordinary Nokia users want a touch screen?
http://onlinemarketingjuice.blogspot.com
While it's lovely that the N95 has a good camera, it's such a minor factor in a smartphone decision, it seems like people are grasping at straws for things to tout.
I mean if the camera is so critical to the smartphone, wait until you see the smartphone Canon or Nikon are coming out with!
This obsession with the camera's quality reminds me of the excitement over Garmin's Nuviphone.
'We will never make a flip phone' they said 7 years ago, well the world wanted it and the majority of phone sold in the US were flips (Samsung, LG, MOT)
Maybe Nokia should have bought Palm 3 years ago....
Dan you write it as a given that consumers want Iphone and RIM. Now you must be in America because the Apple brand and Blackberry is just not as strong here in our neck of the woods. Nokia was two years late with the slide phone two years late with clamshells. the first credible smartphone OS company Do you really think that they are going to say: ok guys we are out of here?
2ndly you have to remember that Iphone in Europe was a horrific disaster in Europe. It seems the japanese and the europeans are allready turning their backs on the 3g iteration BEFORE launch...
Play arounf with the E71 for 24 hours and you will understand why the consumers are turning their backs on the IPHONE
Now start writing credible or get a job at Fox News
I have to say I am sick and tired, repeat sick and tired of this iPhone mania! But then again this is what happens when people have blinders on.
Let's look at some facts shall we?
1) the iPhone has a 2 MB camera... The European norm is 5 MB
2) The iphone takes pictures... Woopee... The Non-American norm is to be able to take videos that are uploaded to YouTube, and ClipFish...
3) The iphone has a calculator and SMS... Woopee... The non-American norm is MMS, and the ability to watch TV!
Do me a favor and get out of silicon valley because in terms of wireless silicon valley is a few generations behind the loop!
Firstly, the E71 doesn't natively support Balckberry enterprise. This is a surprising and, I believe, flawed decision from Nokia. Secondly, although it supports MS Exchange it doesn't have a one-minute setting or real push e-mail as far as I can see. I suspect later firmware will correct this ommission.
There is a lot wrong with Nokia as an organisation - their digitial distribution strategy is a mess with N-gage, Ovi, Download! and others. They need to consolidate this into one channel running from one source. They're also slow to react sometimes and don't seem to have Apple's agility. However, they are market led so they do tend to see what the market wants then throw their excellent R&D division at it to make competing models.
It's also a bit daft to compare Nokia to Apple at all: Apple make one model of phone aimed at one market segment, Nokia make dozens aimed at all market segments, including at least half a dozen targetted at the smartphone set. I suspect there'll be room for both. Frankly, a lot of the palaver about the iPhone comes from either bloggers who don't really understand the industry or analysts who missed the iPod boom and are s**t scared of missing out on a potential iPhone surge and are thus overcompensating a bit.
Some specific comments:
ej - *facepalm*. Serioulsy.
Mike - Yup, the N96 is essentially a beefed up N95 8GB with a better OS (S60v3 FP2), more memory (16 GB) and a microSD slot. That pretty much addresses everythign I wanted from the N95 so it'll suit me pretty well.
There IS NO Competitor to the iPhone...
My Nokia E-70, that I paid QUITE a Price for 2 years ago is (and has always been) a piece of crap. I cannot even leave my apartment building or take a subway ride without it crashing and restarting itself - I assume it's confused (not used to city life maybe?) and when it can't get a signal, it just restarts itself over and over (SAME issue I had with my $450 P900 from several years back that SONY could not fix after sending it in 3 times and it was... "There's nothing wrong with it in our tests." REALLY?).
NONE of the cell phone makers have a clue.
NOT One really cares about any upgrade to the cell phone you bought already (THANK YOU APPLE for Changing this mentality with the iPhone).
I'm still running the software that came with my unit from the factory (with all it's many bugs) because it isn't upgradable unless you own a Windoze machine... EVEN the NOKIA 'Flagship' store here in NYC says, "No, we have no way to upgrade the software in your case. (and in the case of millions of other users (certain to be former users soon)).
NO PITY for these cell phone makers pushing garbage electronics with 'great specs' and no REAL functionality..
They design them not to work very well so that you keep buying a new one in hopes that someone will solve the problems (iPhone has...)
Bye bye Nokia, Sony, Treo, Blackberry, Samsung, LG and the others...
There IS NO Competitor to the iPhone...
My Nokia E-70, that I paid QUITE a Price for 2 years ago is (and has always been) a piece of crap. I cannot even leave my apartment building or take a subway ride without it crashing and restarting itself - I assume it's confused (not used to city life maybe?) and when it can't get a signal, it just restarts itself over and over (SAME issue I had with my $450 P900 from several years back that SONY could not fix after sending it in 3 times and it was... "There's nothing wrong with it in our tests." REALLY?).
NONE of the cell phone makers have a clue.
NOT One really cares about any upgrade to the cell phone you bought already (THANK YOU APPLE for Changing this mentality with the iPhone).
I'm still running the software that came with my unit from the factory (with all it's many bugs) because it isn't upgradable unless you own a Windoze machine... EVEN the NOKIA 'Flagship' store here in NYC says, "No, we have no way to upgrade the software in your case. (and in the case of millions of other users (certain to be former users soon)).
NO PITY for these cell phone makers pushing garbage electronics with 'great specs' and no REAL functionality..
They design them not to work very well so that you keep buying a new one in hopes that someone will solve the problems (iPhone has...)
Bye bye Nokia, Sony, Treo, Blackberry, Samsung, LG and the others...
"Though these two inventions—iPhone and Apple II—were launched by the same man, the revolutions that they inaugurated are radically different," he writes. "The Apple II was quintessentially generative technology. It was a platform. It invited people to tinker with it... The iPhone is the opposite. It is sterile. Rather than a platform that invites innovation, the iPhone comes preprogrammed... Whereas the world would innovate for the Apple II, only Apple would innovate for the iPhone."
If we talk about the facts Nokia had it's best first quarter ever this year with biggest profits ever and biggest sale numbers.
Nokia is currently selling more N series phones in China than in Europe and that's biggest market growing with India where Nokia is by far biggest guy.... like in every emergin market.
Iphone still havent made the impact in europe or Asia that are BY FAR biggest markets to Nokia.
While USA got it's own problems and Europe seems to be going down with the phones sales new markets in India and Chine will be big thing and Nokia is ready there.
This phone that you see here (E66/E71) will sell more than iphone, just watch it happen.
S60 3th edition is living it last days currently as 5th edition will take it's place later this year so it looks outdated on looks, but is currently really stable and the buyers are familiar with it in Nokia's main markets.
Some of these blogs need to take the USA goggles away and look it globally. Nokia is on the safest spot compared to all in top 5.
Samsung and Nokia models sell these amount of phones in a couple of days.
No matter how good Iphone is it cant compete with Samsung, Nokia, SE and LG portfolios. It's just something that the top players can offer phones for so many segments and that's something Apple will not ever do.
BB is still only for business.
These USA centric view just makes me sick. Thank god Europe and Asia are the biggest mobile phone markets and know better.
Example ATT's selection is horrible compared to uk and in uk where they have by far more competition than in USA as all mobile phone brands are up there. Nokia's N95 sold every day more than example iphone and have sold over 15 millions already with no press notice... because it aint anything new.
Reason why shares are down is because mobile business might be going to cooldown state and the craze of these big companies have been having seems to be settling down.
Juts remember that Nokia sells 1.2 million phones a day and has 55% share of smart phone business where Apple didnt have any affect globally.
It's just plain stupid to compare Apple to Nokia. They are actually those 2 companies that are hurting the least each other.
Why arent we talking about SE that has gone down like a rock? Or Samsung Apple? Or Moto?
Nokia is so far away from Apple in size,sales and makes so many different phones to different people that want that, but dont want that and Nokia gives it or Sams or SE.
Apple is nich product. It's great product, but it's just plain stupid to even compare it to mobile phone giants and i'm sure not even Apple is trying something that the top players are.
I dont understand why do these Apple "fans" need to sell us these products.
Like above why arent you comparing Samsung or Motorola that might even bother watching out to these companies as they are strong in states.
This is a pretty strange comment, Nokia was already selling flip phones in Korea back in early 2001. It is true they didn't sell them in other countries before 2003. Flip phones, however, are a marginal product in the market as a whole, even in Korea were they used to make 90% of the market they have now been become unpopular in the last two years.
That wasent enough to damage Nokia.. so how on earth can something like BB or Iphone to be something more than those.
Get that white, red goggles away please.
iPhone is priced as a smartphone, so one should compare it only to others in the smartphone market, not to the whole 2.2B cellphone market.
It took 10 years for all the Symbian licensees (of which Nokia is the largest one) to sell 206M "smartphones". During the 1Q08, 18.5M Symbian smartphones shipped, distributed among the 150 or so models available at the end of the quarter; for all of CY07, 77.3M Symbian smartphones shipped.
RIM shipped 4.4M in its last quarter (ending 1 Mar 08) with about 14M Blackberry smartphones over the whole year. Apple sold 1.7M iPhones in 1Q08, with 3.7M in the last half of CY07.
The numbers clearly put RIM and Apple in the ballpark. The growth rate trajectories show that RIM and Apple are taking a large chunk of the growing, high value market. And it's no stretch to see that iPhone 3G will be the best selling single model in the last quarter of 2008.
Sorry your average consumer doesn't follow Apple any more than Nokia.
Apple has a very small share of the phone market and never made its first year sales projections even after the big price drop last year.
I like the iPhone, but please Apple fanatics, gave the rest of us a break.
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