Smartphone Market: Nokia Never Give Up

Unyielding, unbending, suborned, all these words are used by writers for Nokia now. These words are sort of gloomy, for writers have a cautious optimism attitude to the future of Nokia. But this does not preclude Nokia counter-attack according to their own pace.

On January 9, 2007, when Steve Jobs released iPhone, Nokia proudly claimed that it’s the best time in history and this kind of iPod Phone with music function will not affect us. In fact, the strong market performance makes Nokia has enough reason to say this. Nokia first reached 40% in the global market in the fourth quarter of 2007, annual operation profit increased 46%, reach 8 billion euros. Everybody exclaimed Nokia is becoming a big MAC in mobile market.

iPhone is becoming more and more popular, and constantly update. Now, it has update to the fourth generation. The rising of 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 unable to replace the battery, expensive price. But this is iPhone, this is Steve Jobs, who competes in the arena of his own according to his own rules. iPhone is able to slowly absorbed a small part of the Nokia’s users, but iPhone cannot defeat Nokia.

However, Google Android appeared, which with free and open attitude quickly captured a large number of cell phone manufacturers, even SONY Ericsson, always conservative, said they will join the Android. Google isn’t Nokia, it does not need to sell mobile phone to earn money, it has no direct competition relationship with mobile phone manufacturers, so it can rapidly complement with manufacturers to meet the needs of users. Soon, the high, middle and low end Android emerge endlessly, even the fake mobile phones are unwilling to lag behind and want to join in, so Android plump up at an unprecedented pace. Although it has disadvantages compared with iPhone, it has a big advantage compared with Nokia which choose to change mobile phone shells. Then smartphone seems to become a stylish word. Do the smartphone popularize Android or the 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 2010 world smartphone market survey, recently released by the American market research institutions Canalys, the sales volume of Android smartphone of the second quarter year-on-year increase 86% of the market share increase from 2.8 % to 17.1%, it’s really strong. Compare with Android, the market share of Nokia Symbian decline from last year’s 42 % to 38.1%.

Some analyzed agency point out: In the next few years, Android will take full beyond Nokia and rule the whole smartphone market. Although iPhone is strong, it has little threat to Nokia. But as for Android, the story is different. Those mobile phone manufacturers are suppressed by Nokia Symbian mercilessly for many years, now, they catch the opportunity to join the Android, of course, they will spare their efforts to absorb the users of Nokia. Recently, there is a rumor that Google once actively get close to Nokia, hoping that Nokia can join Android, but certainly Nokia isn’t so easy to be persuaded.

First, If join the Android, it makes Google get off cheap and it means give the share of smartmobile operating system to the others as gift. While in return stand at the same level with Samsung, HTC, Motorola. Nokia certainly don’t want to do this kind of thing which does harm to themselves while benefit others. Although their Symbian3 still not very delicate, when be further processed, it also can be used, for it’s their product.

Second, until now, Nokia is still a brand in smartphone market with the highest market share, and it still has the reason to pride. Once Nokia is the favored one in smartphone market, now are forced to use others’ operating system. On the one hand, they cannot stand this in psychological. On the other hand, it’s a blow for the Nokia Company. If they agree, this means they admit that Nokia is not the Nokia when it’s so popular.

Of course, Nokia still has chance. Recently, it changes their CEO, this shows the company’s determination to innovate. But Nokia has a hard life to face Android group’s siege, the iPhone’s stand aside, and those close comrade-in-arms, such as Samsung, SONY, their departure one by one.