Oppo & Vivo Smartphone Gained Markets Share in India with No Return

The lull in Chinese domestic market forced them to a situation where the factory shut down was imminent. At that point of time Oppo and Vivo entered Indian Smartphone market without any knowledge of Indian domestic market adoption trend.

Most the management were from head office landed them in tight spot and they failed to gain any traction in the first year of operation. 

Post first taste of failure both the companies quickly changed their strategy and inducted seasoned Indian Professionals to represent them in the market place whereas head office kept the key of major decision making process.

Being cash rich company at corporate level, both the organization embarked aggressive advertisement plan with open budget to ensure that the awareness about their brand reaches to masses even though their product line caters mid to high end Smartphone user segment.

The flood of sponsorship of different event worked and at the same time, they successfully placed their device in offline channel which propelled extraordinary growth in volume sale.

Brands which struggled at one point of time are now flooded everywhere at very competitive price point.  For that both the organization team member deserve appreciation.

But at the same time, one should also consider the profitability.

In intensely competitive Smartphone segment where net margin ranges between 1.5% to 10 % given the brand and what premium brand can command. Sustained profitability is big question mark. In my point of view both Oppo and Vivo gained market share but don't think they ever made profit in their Indian operation.

At the end of the day Profitability count for the shareholders compared to volume. It's the right time for both the organization to recalibrate their business model to ensure profitability as brand recognition is already in place.

In point of view, human memories are very short when it comes to brand and moves to other brand in no time. We should learn that from brand like Ericsson handset, Nokia, Siemens etc. How many of us remember the innovators of mobility world.

It will be interesting to see how both the brand do when they reduce buying Smartphone user by throwing advertisement  $. As conclusion they can't keep throwing advertisement money and will be forced to reduce it at one or another point of time and at that point of time real adoption trend can be analysed.  Till then we should not expect them to be profitable.

New Disruptive Tactical Move to Spread Confusion in Buyers Mind - Huawei Open to Buy Nokia

On Tuesday, Post The Financial Times article, quoting Richard Yu, Head Consumer Business, Huawei shown interest in merging with Nokia with a Precondition. The interesting Pre-condition was for Nokia to drop Window Mobile Platform and move to Android phone. In recent quarters, Nokia is positioning itself across ecosystem vertical through horizontal and vertical ecosystem support and offering good value proposition to consumers and prosumer's. Huawei, the third largest Smartphone Player is of course the heat of Nokia new and upgraded Lumia series device across geographies including China. The subsequent clarification from Huawei denying any intention to honour Richard Yu, clearly justify tactical move of disruption methodology to create confusion and snatch market share. In my point of view, its shows organization print media control mechanism.

Google Struggling to Settle Anti-Competition Case Filed with EU Regulators

The EU Anticompetitive regulators move to quiz mobile operators and device manufacturers to validate Microsoft and Nokia claim about Google attempt to supress rival Internet search technology. Three years old complaint by Microsoft and Nokia accused Google for offering lucrative deal to Industry ecosystem players to use Android and in-turned blocked competitor mobile telephony and used it dominant position in Mobile OS to divert traffic to Google search. EU regulators released list of queries for involved parties to review the viability of complaint in order to take next step. Google already offered options of labelling search results with its own product and also enabling links to competing sites. It would be interesting to see, how investigation shapes up as it will be long term impact on mobile operating system ecosystem and Internet Industry dynamics.

Microsoft Collaboration with Best Buy & Canadian Future Shop – Nokia Chance to Increase Market Share & Brand Awareness

In an attempt to break in tiered sell through processes in US and Canadian Mobile Device Market; Microsoft collaborated with struggling Best Buy to open Microsoft powered Windows store. Initially, Microsoft is going to open Windows Store in 600 outlets of Best Buy covering around 50% of the Best Buy outlets. Microsoft also entered in similar agreement Canadian Electronic chain Future shop to open 100 Windows stores. Currently, Apple and Samsung enjoy strong relationship with electronic retailers and generally get 2000 to 2500 square feet of dedicated product line centric space which in turns helped them with higher product adoption by consumers and prosumer’s. The collaboration is going to help Microsoft to initiate user awareness programme about Microsoft product line other than non-mobility product line. In my point of view, Microsoft would be focussing on highlighting connected device support through Microsoft different product layer.

In the past one year, Microsoft also turned buoyant regarding their successful global Window Mobile Operating System WM8.0 adoption through Nokia Lumia product line. In Q42012, Nokia helped Microsoft Windows Mobile OS to replace Blackberry and captured third mot adopted Smartphone OS in US.

Nokia Launched their product line in collaboration with US wireless service providers and due to near zero level presence of Nokia in the past; the sell through team of wireless service providers finding it difficult to convince potential buyers to buy Windows Powered Nokia device. The wireless store attached sales team finds it easy to push Android device given its awareness with consumer base.

The collaboration can be considered as excellent opportunity platter for Nokia to extend the brand awareness in their traditionally weak geography. It would enable Nokia to sell WM8.0 powered multiple Lumia device.

Microsoft vision is to also transform Microsoft DNA perception from Operating System Company to Connected Device end to end solution provider. The space is going to be useful for Microsoft to demonstrate live as well as virtual multi player X-Box, Surface and other device centric product line.

The collaboration and shelf space would also be useful for both Microsoft and Nokia to develop BYOD vs. Nokia advantage given end to end office connectivity through Windows product line. The proposed store agreement is definitely going to be huge challenge for Blackberry to regain 3^rd spot back from Nokia in US market

With multimillion foot fall every year, even if Nokia manage to convert less than half a percent into potential Nokia product user would change US smartphone OS adoption game. Any change in product awareness and adoption is going to have direct impact on ecosystem players around it. In my point of view, the upcoming opportunity and its success may make or break Nokia Long term investors and ecosystem around it.

Window Mobile OS crossed 10% market share in Italy during April ending 2013

At last good news started flowing in for Windows Mobile Operating System ( WM 8.0) .According to ComTech report on Mobile OS market share, WM 8.0 managed to cross 10% mark and settled at 10.5% ending April 2013. WM8.0 achieved 57% YoY growth. Android also extended its share from 47.9% to 66.7% YoY. Symbian market share came down from 15.8% to 3.5% whereas iOS market share came down from 22.2% to 16.6%. The April ending numbers clearly indicate the growing interest demonstrated by consumer towards WM 8.0. Since, more than 65% WM8.0 are Nokia branded and also indicate that on supported mobile operating system support level their market share went down. As per Nokia strategy to phase out Symbian and adopt WM8.0 or upgrades with long term vision to touch 10% of mobile operating system market share may act as small but first success towards achieving their global goal. The good 37% YoY growth of Android in Italy mobile operating system segment and slow but steady adoption of WM8.0 may act as trend setter for local application developers

China Smartphone market contributed 23.55% of Global Shipment in FY12-13 – Potential Trend Setter

In Just concluded FY12-13, According to research firm Strategy Analytics, China contributed 23.55% of Global Smartphone shipment. Interestingly, Top 7 smartphone players with such as Samsung, Lenovo, Apple, Huawei, Coolpad, and ZTE are cementing their position whereas LG and Nokia suffered major blow. Being global player and replaced by local Technology Giant clearly indicate dynamic shift of consumer preferences around UI/UX and supported content ecosystem. Samsung for the last two consecutive quarter selling more than 10 Mn smartphone in China and commanding good price premium over competitors. As IDC projecting 20% YoY growth in smartphone shipment, I feel that China would lead volume game. It also indicates that China demand would enforce technology player strategy towards device design and development.