Here’s a news which will not surprise anyone. Nokia has posted a loss of a whopping %523 million in the 2nd quarter of 2011. Its overall revenue has come down by 7% from 10 billion euro to 9.3. Nokia is now behind Iphone in its overall sales figure and has slipped to the 2nd spot!!!
There are several reasons for Nokia losing its market share which is a lesson in itself. Some of these reasons are
1) No Android OS – Nokia did not adopt the android platform which is thriving in the market and this gave a huge open space to its competitor to make a dent in Nokia’s market share. Not adopting android might have been the worst decision Nokia ever took.
2) Poor product designs – None of the recent new phones launched by Nokia have product designs which even match those of top business phones or smart phones (Blackberry / Iphone). The products appeared too bulky or stale to classify in either category.
3) No new features added – Whatever features were in Nokia mobiles were already present in different mobiles as well. Whether it be 3G, social media or what not. Nokia was a step behind in adding innovative features and apps to its collection.
4) Complete reliance on brand equity – Brand equity really makes up the price for a product. However Nokia supposedly relied on its brand equity for a longer time thereby effecting it in the long run.
5) Changing technological environment – Nokia was always known for its simplicity. But the telecom environment has completely changed and now people do not want simple phones. They want the smarter ones or the ones packed with features in a smart manner.
6) Increasing Buying power – The buying power of individuals have been increasing. Nokia may still dominate in the rural segment but it is losing fast in the Urban market.
It is survival time for Nokia and it really needs to tighten its belt to come up again in the face of tough competition. But with the kind of brand equity it has, Nokia is one company which wont stay behind for long. As Maggi says “Its different”, similarly a new strategic plan is needed by Nokia to stand apart from the crowd and “Be different”.
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About Hitesh Bhasin
I think Nokia will take time to compete the iPhone. On the other hand this same time maybe the advantage for iPhone to make the better market share and place among the customer’s hearts.
nokia has lost it ..ihave been with nokia since late seventy s. always used them and never regretted it until my last phone
i bought the flagship n97 mini at over £500.00 . best and most expensive paper weight i have ever had. useless phone . been back to nokia 4 times and tested customer services to the limit .and i now have a phone that will not work for the remainder of my two yearr contract .as a result i will never buy nokia again.some of the excuses bordered on the bizzare and feeble to the almost childlike attitude .
I would recommend that anyone. looking to buy avoid nokia unless your looking for a load a problems that is!! this is why nokia has lost it in the mobile phone market .customer should be king !
Something is seriously wrong with Nokia management, R&D and marketing. When a company doesn’t know what the consumers want and when a company tries to sell a mid-range spec phone at a high-end price, you know that company is probably in deep trouble. For some strange reason, they decide to drop all the likable features in their new flagship phones (ie N9, Lumia 800) – no more usb-otg, no more hdmi, no more replacable battery, no more microSD slot, no more secondary camera.
I have had 3 Nokia handsets in the last year and a half and can tell you the latest (E5) will be my very last Nokia ever. Just another loyal brand based customer voting with my feet and so it will continue until Nokia figures out it can’t ride on yesteryear forever and a day. Good night guys, remember to switch the lights off before leaving