It is well known that Nokia is struggling to regain its market share, after facing stiff competition from Apple iPhone and the new Android equipped smartphones. Indeed, Nokia has gained its market share because of its quality low end phones. But even on that front, Nokia seems to be losing out, especially in India, to brands like Olive, Lava, and Spice to name a few.
Nokia suffered a 40% year on year profit decline as it waits for its new products to grip the market. Its net income stood at $291 million. Sales rose almost 1% to $12.8 billion. What seems to be the wee bit good news is that in spite of old products, it managed a 42% in smartphone sales.
Another change on Nokia’s cards is the change in its management team. It reshuffled some of its managers in May, sounding the bell for better managerial decisions.
Nokia is in dire need of some radical smartphones to add to its list of products to stop the slide in market share and average selling price. The selling price of the smartphones by Nokia fell by almost 20% compared to last year.
Now, Nokia is pinning its hopes on the N8, the first smartphone that wil use the latest version of its revamped OS, Symbian 3. Nokia is streamlining the OS to make it work effectively with the touch phones. Nokia claims that this new phone will have a user experience superior to any other Nokia phone.
Nokia has lagged behind when it comes to smartphones. People prefer buying the humungously popular iPhone or Android equipped smartphones. The Symbian OS is not top-notch, nor did Nokia do anything about it for a while. But all might not be wrong with the company. Everyone expected the worst for the company with regards to smartphones. Contrary to forecasts, Nokia sold 24 million smartphones, which helped a bit at this dark hour. Despite this, one major market that Nokia is unable to capture is North America.
Nokia has all its hopes pinned on the new Symbian 3 OS. But with Android raring to be launched on low end phones too, it surely seems difficult. If Symbian doesn’t deliver what it promises, then Nokia is surely going to go down! The fall is eagerly awaited. What do you think?