Feb 152012
Can the Lumia range save Nokia and Microsoft Windows Phone

Yesterday Nokia and Microsoft gave a preview of their upcoming Lumia 710 and 800 phones for the Australian market. It’s make or break time for both companies in the mobile space.

The phone itself is quite nice – Windows Phone 7.5 runs quite fast with some nice features such as integrated messaging and coupled with good hardware it’s a nice experience. Those I know who use Windows Phones are quite happy with them (I’m an iPhone user myself).

Whether its enough to displace the iPhone and the dozens of Android based handsets on a market where both Nokia and Microsoft have missed opportunities remains to be seen.

The battle is going to be on a number of fronts – at the telco level, in the retail stores and, most importantly, with the perceptions of customers.

Probably the biggest barrier with consumers is the perceived lack of apps, to overcome this Nokia have bundled in their Maps and Drive applications while Microsoft include their Mixed Radio streaming features along with Microsoft Office and XBox integration.

As well the built in services, both parties are playing up their application partners with services like Pizza Hut, Fox Sports and cab service GoCatch. Although all of these are available on the other platforms.

While application matter, the real battle for Nokia and Microsoft is going to be in the retail stores where the challenge shouldn’t be underestimated.

Apple dominate the upper end of the smart phone market and Android is swamping the mid to low end. How Windows Phone devices fit remains to be seen.

In Australia, if they going to find salvation it will be at the tender hands of the telco companies.

The iPhone is constant source of irritation for the telcos as not only do Apple grab most of the profit, but they also “own” the customer.

On the other hand, Android devices are irritating customers who are bewildered by the range of choices and frustrated by inconsistent updates that can leave them stranded with an outdated system.

So the Windows Phone does have an opportunity in the marketplace although one suspects commissions and rebates will be the big driver in getting sales people at the retail coal face to recommend the Microsoft and Nokia alternatives.

Overall though, it’s good to see a viable alternative on the market. For both Microsoft and Nokia the stakes are high with the Lumia range – it could be Nokia’s last shot – so they have plenty of incentives to get the product right.

Microsoft has consistently missed the boat on mobile computing since Windows CE was launched in 1996 while Nokia were blind-sided by the launch of the iPhone in 2007 and have never really recovered.

To make things worse for Nokia, the market for basic mobile phones where they still dominate is under threat from cheap Android based devices. So even the low margin, high volume market isn’t safe.

For both, the Lumia range is critical. 2012 is going to be an interesting year in mobile.

  One Response to “The high stakes of Lumia”

  1. Nokia has lost the plot. It happens when companies become big and the new wave of management are “professional” executives; big on self-promotion and process but small on imagination.

    If Nokia had had the slightest trace of entreprenuerial spirit left, it would have embraced Android with gusto and created its own distro. Nokia’s phones are the best in the world when it comes to reception, clarity and economical power usage. Their own operating system, Symbian, was not pleasant to work in and they didn’t have the intellectual mass nor the budget to develop it… nor did they have the vision to Open Source it before Google changed everthing with Android.

    Android with Java is a passable development environment; at least better than Symbian and definitely better than Apple.

    The beautiful (and the distressing) thing about Android is that it can be whatever you want it to be. Nokia with its reputation for excellence, its market presence, its brilliant engineers, would have rendered Samsung diminuitive (with their markedly inferior telecommunications) and HTC which, until Nokia dropped the ball, would not have established itself in the market as it has brilliantly done.

    Shareholders of Nokia… you should fire your management! They, like Windows 7 will be proven to be, are mediocre in an Open world that requires excellence for global success.

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