In the last few months some very respectable tech blogs that are frequently quoted on UpGRD.me, have called it the end for Nokia. Gizmodo said “Nokia Is Doomed” not once, not twice, but three times after publishing its N97 review. Engadget published a very creative, but somewhat negative review on the N97. And TechCrunch gave the N97 a less than stellar review too. While Nokia’s profits have dropped substantially, and it forecasts have been slashed, is this really the end the the world largest cell-phone manufacturer?
Sure, the Finnish giant’s handsets are somewhat inconsequential in the U.S. and are taking a beating from Apple and RIM in the smartphone market but lets take a minute to remind ourselves that Nokia is still, by far, the largest manufacturer and seller of mobile phone handsets in both the smartphone and non-smartphone category. And though the vast majority of its sales come from selling low-cost, non-smartphone handsets, Nokia/Symbian still owns 49.3% of the smartphone market (although this number is declining). Analysts and bloggers tout the incredible growth of smartpones year-over-year, but it is key to remember smartphones are not for everyone. While the global share of smartphones may rise from the current 13.5% to even 30%-40% in the years to come, Nokia still dominates the market when it comes to making easy-to-use, low-cost phones that just work. The first phone that I used was a Nokia. And it is the the only phones that several technophobes in my family use. Ultimately, nothing beats a Nokia candy-bar handset for simplicity and ease of use and not everyone needs a smartphone.
Nokia 3110
The problem with Nokia’s smartphone strategy right now is its S60 5th Edition OS. It is not optimized for touchscreens and the new-generation of e-mailers, tweeters and media-consumers. It is, however, still vastly superior to any Windows Mobile handset available (even those with an “optimized” UI – aka TouchFlow 3D). And if companies like Palm can make a potential comeback (whether the Pre/WebOS will be Palm’s savior or not is still undecided), I’m certain Nokia can pull itself out of the water. The company just needs to be careful that it doesn’t go the path of Motorola in years to come.
Finally, I’d be remiss if I didn’t mention the decent amount of buzz surrounding the E72 business handset that is to be release shortly, and if Nokia can hit the $99 sweet-spot, it may very-well have a hit on its hands in the US. And if the rumors are true, given the years of experience under its belt, I’m certain Nokia can put out an Android-based handset to match the very well reviewed HTC Hero. All said and done, I can see how it is tempting to write-off the Finnish giant, but even the venerable Apple, Inc. has had its tombstone carved out prematurely once or twice before.
Krishna is a guest-blogger on UpGRD.me. He can be found at www.krishnasrinivasan.com
