Does the move signify hope to win smartphone race in emerging countries?
Three years after announcing that Nokia would jump ship to Microsoft's Windows Phone software instead of Google's Android software, Executive Vice President Stephen Elop got on stage at the Mobile World Congress trade fair at Barcelona, Spain, on February 24 to announce a new line of mobile phones that run a modified version of Android.
Microsoft might be buying Nokia's phone business shortly, but the Finnish smartphone maker is still pushing ahead with the launch of three Android-powered handsets today. The company is now ready to talk specifics about the X, the X+, and the XL. As expected, all three combine Lumia-style design with low-cost hardware aimed at the masses, from a large 5-inch screen on the 109-Euro XL to the 4-inch display on the 99-Euro X+. The X will be released for just €89 in Eastern Europe, Asia, South America, and a few other global locations, but it won't be making its way to North America, Japan, Korea, or Western European countries. These aren't competitors to Samsung's Galaxy S4 or Apple's iPhone 5S, and there are certainly no surprising hardware additions like a 41-megapixel camera or a giant 6-inch display. Instead, the standout feature of the Nokia X lineup is the software that powers it: Android.
According to Mr. Elop, the market has "shifted dramatically" and the company needs to quickly address the sub-$100 category of mobile phones in "growth markets". According to analysts, this is Nokia's submission of the fact that buyers of low-end mobile phones in countries like India prefer an Android-based operating system over anything else. Dr. S. Raghunath, Professor, Corporate Strategy & Policy, weighs in.
The new line of phones - Nokia X, X+ and XL based on Android comes days ahead of Microsoft's acquisition of Nokia, so what do you think of the firm's dramatic shift?
It is a carefully crafted response to changes in demand for smart phones as the low and mid range are the fastest growing segments. This is a classic case of market pull instead of technology push with the focus shifting to emerging markets. Therefore Nokia is using the Android platform and providing Microsoft services on it, leaving out Google in the process.
Don't you think there will be an overlap with their other devices?
Yes, for all appearances it looks like cannibalization is being encouraged. The Windows Phone is not very popular in emerging markets. Microsoft is in the process of signing up several hardware partners, which includes Lava, Karbonn and Micromax. These third party OEM partners are being supported by the Microsoft retail ecosystem. Moreover, Microsoft is depending more on services for revenues and profits. Nokia will have the opportunity to cover all market segments for smartphones and it is demonstrating its lately found ability to turn agile and quick enough to enter the windows of opportunity before they close. For its survival Nokia is demonstrating agility in exploiting scope opportunities instead of just relying on scale.
Does it mean Nokia jumped ship the wrong way with Windows Phone software three years ago?
Not really. Nokia on its comeback trail is trying to help the emerging markets like India move to a strong market share when two platform candidates, Microsoft Windows and Android, are competing. Successful penetration into the emerging markets requires managing both the technology and the business side of the Android and Windows platform.
Does the move signify hope to win smartphone race in emerging countries?
Three years after announcing that Nokia would jump ship to Microsoft's Windows Phone software instead of Google's Android software, Executive Vice President Stephen Elop got on stage at the Mobile World Congress trade fair at Barcelona, Spain, on February 24 to announce a new line of mobile phones that run a modified version of Android.
Microsoft might be buying Nokia's phone business shortly, but the Finnish smartphone maker is still pushing ahead with the launch of three Android-powered handsets today. The company is now ready to talk specifics about the X, the X+, and the XL. As expected, all three combine Lumia-style design with low-cost hardware aimed at the masses, from a large 5-inch screen on the 109-Euro XL to the 4-inch display on the 99-Euro X+. The X will be released for just €89 in Eastern Europe, Asia, South America, and a few other global locations, but it won't be making its way to North America, Japan, Korea, or Western European countries. These aren't competitors to Samsung's Galaxy S4 or Apple's iPhone 5S, and there are certainly no surprising hardware additions like a 41-megapixel camera or a giant 6-inch display. Instead, the standout feature of the Nokia X lineup is the software that powers it: Android.
According to Mr. Elop, the market has "shifted dramatically" and the company needs to quickly address the sub-$100 category of mobile phones in "growth markets". According to analysts, this is Nokia's submission of the fact that buyers of low-end mobile phones in countries like India prefer an Android-based operating system over anything else. Dr. S. Raghunath, Professor, Corporate Strategy & Policy, weighs in.
The new line of phones - Nokia X, X+ and XL based on Android comes days ahead of Microsoft's acquisition of Nokia, so what do you think of the firm's dramatic shift?
It is a carefully crafted response to changes in demand for smart phones as the low and mid range are the fastest growing segments. This is a classic case of market pull instead of technology push with the focus shifting to emerging markets. Therefore Nokia is using the Android platform and providing Microsoft services on it, leaving out Google in the process.
Don't you think there will be an overlap with their other devices?
Yes, for all appearances it looks like cannibalization is being encouraged. The Windows Phone is not very popular in emerging markets. Microsoft is in the process of signing up several hardware partners, which includes Lava, Karbonn and Micromax. These third party OEM partners are being supported by the Microsoft retail ecosystem. Moreover, Microsoft is depending more on services for revenues and profits. Nokia will have the opportunity to cover all market segments for smartphones and it is demonstrating its lately found ability to turn agile and quick enough to enter the windows of opportunity before they close. For its survival Nokia is demonstrating agility in exploiting scope opportunities instead of just relying on scale.
Does it mean Nokia jumped ship the wrong way with Windows Phone software three years ago?
Not really. Nokia on its comeback trail is trying to help the emerging markets like India move to a strong market share when two platform candidates, Microsoft Windows and Android, are competing. Successful penetration into the emerging markets requires managing both the technology and the business side of the Android and Windows platform.