A month ago, Microsoft and Nokia announced that they were going to join forces to try to compete in the Smartphone sector. It all begins when Stephen Elop, Nokia’s CEO, sent an email to all its workers reproaching the current situation of the company.
Nokia is struggling to compete with the other companies in the sector, which experienced a great increase on innovation and in sells. Nokia was the world’s leader in manufacturing smartphones with more than 200 millions of clients around the planet. But in 2007, Iphone was released and since then Nokia hasn’t even produced any product up to it. Furthermore, Android, which has been in the market for 2 years, has replaced Nokia as the world leader in sells. Only in a year, Nokia has lost market share from 40% to 31%.
So I think Stephen Elop had so many reasons to be upset with the late performance of Nokia. I even remember almost 10 years ago, when Nokia was clearly the leader in sells by far in the mobile phone sector. For sure most of you had a Nokia 3210, 3310 or 3330. Through the years they have been improving but lastly, as Elop said, they got immobile.
Therefore, Nokia has agreed with Microsoft to ally with the objective of becoming the leader in its sector. Microsoft is the world leader in software, but its sales aren’t very impressive, so it’s a good move for both companies. So Nokia will embody Windows Phone 7 as its software. Well as the other, they have a great experience in the business world and comprehension of the consumer. With this deal Nokia is optimistic to retake the leadership in the sector.
In my opinion, I think that it’s not only a good strategy for both companies, but also for us, the consumers. Consumers are the clear winners, with a great competitiveness in this sector, a lot of improvements will be done, resulting as new designs and innovation, new experiences for users.
Carles Urpí
Very interesting, I really think that it is a current topic. Everyone is going with smartphone’s, it is the present.
ResponEliminaBut related with your article I think that we have to have something in mind, Nokia is late and Microsoft too. They are not one or two years late, they are almost five years late. Httc, iOS, and Android have taken the market. They have come with very interesting solutions for daily problems, and what is more important, the public have accept them.
With all this, were I want to arrive is that Nokia and Microsoft are late, and that they will have to do an epic effort to take a pice of this cake that is the smartphone planet.
I agree with Toni. Nowadays the smartphone industry is dominated bye Android and iOS. If you look around you with your parents, your friends… you’ll see that there is a lot of people that have iPhone, blackberry, Samsung but few people have Nokia in comparison with what it was in the past.
ResponEliminaNokia was very famous before but since Apple create iPhone, everything change.
I think that the fusion of Nokia and Microsoft in the smartphone world will be an advantage, in terms of Marketing and software, for Nokia and also probably will recover their market share that had before. But, as Toni said, to recover it Nokia and Microsoft together will have to do a smartphone better than iPhone and this will not be easy. iPhone is providing to citizens all the needs in a simplistic and easy way to have access to them and, to create a new software better than this one will be hard for Microsoft.
Finally, to conclude, the fusion of Microsoft and Nokia I think that will be good for both but to recover the same market share will be a difficult task.
Great post Carles!
ResponEliminaWatch:
increase on --> increase IN
more than 200 millions of clients --> more than 200 million clients
Great comments too!