Nokia Paints Bleak Picture of 2011's Painful Windows Phone Transition
March 9, 2012 1:16 PM
comment(s) - last by
Finnish phonemaker hopes to correct course in 2012
Precious little went right for Finland's Nokia Oyj. (
) in 2011, at least that's the direct picture based on its
[PDF] filing with
U.S. Securities and Exchange Commission
to billions in lost revenue Nokia clearly had one whopper of a painful year.
The biggest negative there is definitely the
massive 25 percent drop
in smartphone sales. One smartphone equals several feature phones in profit, so the feature phone dip -- due, according to Nokia, to its feature phones lacking the popular dual-SIM option in H1 2011 -- is far less troubling that the smartphone plunge.
Digging for good news amid the clouds, one can point out that in 2011 customers knew
Symbian was going to die
, but did not have access to Nokia Windows Phone offerings at all in some markets (like the U.S.) or did not have alternatives until very late in the year in other regions (Europe).
By contrast in 2012 Nokia has already launched a number of attractive handsets, including the
Lumia 710, Nokia Lumia 800
Lumia 900 LTE
, which are all on their way to U.S. carriers. And Nokia has the
Lumia PureView 808
waiting in the wings with its massive imaging sensor (
41 MP, but not a gimmick
, in that it is five times the size of current top-of-the-line sensors) for H2 2012.
Nokia's stylish Lumia Windows Phones look to push the phonemaker to recovery in 2011.
Likewise, Nokia can look forward to more payments from Microsoft Corp. (
rewarded Nokia with $250M USD
in Q4 2011 for picking Windows Phone. Lastly Nokia's feature phones are now dual-SIM equipped, and it's aggressive expanded its Asha line, which offers premium features like pictures, internet, and apps to feature phone customers.
Nokia was still the world's largest phone maker in 2011. But it must step up its game in 2012 -- both to avoid getting left farther behind in the smartphone race, and to avoid getting bumped by a surging Samsung Electronics Comp., Ltd. (
) from the
world's top phonemaker slot
Fortunately there is evidence that Nokia may be on the verge of the turnaround it needs. Nokia's miserable year,
absence from the U.S. holiday season
, and hopes for the future can perhaps best be summed up by the famous refrain of the Counting Crows' song
A Long December
A long December and there's reason to believe
Maybe this year will be better than the last.
Nokia certainly hopes so.
This article is over a month old, voting and posting comments is disabled
RE: Should have gone Android.
3/9/2012 6:37:30 PM
if you believe that Nokia did the right thing then why are they losing money left and right.
Because they haven't fully transitioned, that and they scared away potential sales by stating they were moving to Windows Phone too early and dumping Symbian altogether. They shouldn't have dumped anything and provided support for at least a couple of more years meanwhile transitioning to Windows Phone handsets.
The other issue is that Windows Phone is relativelly new. With a new product, it always takes time to build critical mass.
With Android, the market is already saturated.
They did the right thing. Windows Phone is picking up steam and Microsoft is doing even more advertising for it.
RE: Should have gone Android.
3/9/2012 11:30:35 PM
With a new product, it always takes time to build critical mass.
I agree; won't pass judgement on them myself until probably after this years holiday season.
RE: Should have gone Android.
3/12/2012 9:58:59 AM
Where is the evidence that WP7 is picking up steam? Nokia's WP7 sales in Europe were characterized as being disappointing by analysts, and predictions for near future sales were lowered. Sales in the US haven't gained at all.
MS is hoping that WP8, available late this year will finally make a difference, with its Win 8 kernel. That finally gives it the ability to use multi core CPUs and a higher resolution than 800x480.
Whether anyone will care by then is an open question.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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