Unyielding, unbending, suborned—all these words are used by writers for Nokia now. These words are sort of gloomy, for writers have a cautious, optimistic attitude toward Nokia’s future. But this does not preclude Nokia’s counterattack according to its own pace. On January 9, 2007, when Steve Jobs released the iPhone, Nokia proudly claimed that it was the best time in history and that this kind of iPod Phone with music function would not affect us.
In fact, Nokia’s strong market performance gives it enough reason to say this. Nokia first reached 40% in the global market in the fourth quarter of 2007, and its annual operating profit increased 46% to 8 billion euros. Everybody exclaimed that Nokia was becoming a big MAC in the mobile market. The iPhone is becoming increasingly popular and constantly updated. Now, it has been updated to the fourth generation. The rising consumer buying spree proved that.
However, because it’s Apple, it’s iPhone, it cannot fully bomb from low-end, mid-end, and high-end. It also cannot play the price war, for the only opponent is itself. It has some disadvantages, such as the inability to replace the battery and the high price. But this is the iPhone; this is Steve Jobs, who competes in his arena according to his rules. iPhone can slowly absorb a small part of Nokia’s users, but the iPhone cannot defeat Nokia.
However, Google Android appeared, and with a free and open attitude, quickly captured the attention of many cell phone manufacturers. Even SONY Ericsson, always conservative, said they would join Android. Google isn’t Nokia; it does not need to sell mobile phones to earn money. It has no direct competition with mobile phone manufacturers, so it can rapidly complement manufacturers to meet users’ needs.
Soon, the high, middle, and low-end Android emerged endlessly; even the fake mobile phones were unwilling to lag and wanted to join, so Android plumps up at an unprecedented pace. Although it has disadvantages compared with the iPhone, it has a big advantage compared with Nokia, which chose to change mobile phone shells. The smartphone seems to have become a stylish word. Does the smartphone popularize Android, or does Android popularize the smartphone? No one can tell.
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The market is consumer interest’s directing sign. Consumers voting with their feet quickly make Nokia feel the cold winter before it really comes. According to the second quarter of the 2010 world smartphone market survey, recently released by the American market research institution Canalys, the sales volume of Android smartphones in the second quarter year-on-year increased 86%, and the market share increased from 2.8 % to 17.1%. It’s solid.
Compared with Android, Nokia Symbian’s market share declined from 42% last year to 38.1%. Some analyzed agencies point out that Android will surpass Nokia and rule the whole smartphone market in the next few years. Although the iPhone is strong, it poses little threat to Nokia. But as for Android, the story is different.
Nokia Symbian has mercilessly suppressed those mobile phone manufacturers for many years; now, they have caught the opportunity to join Android; of course, they will spare their efforts to absorb Nokia users. Recently, there has been a rumor that Google once actively got close to Nokia, hoping that Nokia could join Android, but Nokia is certainly not so easy to persuade.
First, if you join Android, it makes Google get off cheap, and it means giving the share of smart mobile operating systems to others as a gift. In return, it stands at the same level as Samsung, HTC, and Motorola. Nokia certainly doesn’t want to do this kind of thing that harms themselves while benefiting others. Although Symbian3 is still not very delicate, it can be further processed and used for its product.
Second, until now, Nokia is still a brand in the smartphone market with the highest market share, and it still has the reason to pride. Once Nokia was the favored one in the smartphone market, now they are forced to use others’ operating systems. On the one hand, they cannot stand this psychologically. On the other hand, it’s a blow for the Nokia Company.
If they agree, they admit that Nokia is not the Nokia when it’s so popular. Of course, Nokia still has a chance. Recently, it changed its CEO; this shows the company’s determination to innovate. But Nokia has a hard time facing the Android group’s siege, the theiiPhonesstoodaside, and those close comrade-in-arms, such as Samsung and Sand ONY, depart individually.
