Nokia Asha Platform Adoption - Critical for Company Growth

Last few years observed major upsets and repositioning of device manufacturer on global level. Nokia decision to move out of Symbian triggered unprecedented fall in Nokia Feature and Mid-range device volume and at the same time lost its number one position Samsung. Samsung captured never to miss opportunity and invested heavily on brand building, device innovation, and mobile device availability across price range to capture market share from Nokia. The fall in Nokia market share, profitability, restructuring, positioning of Lumia Series and slow uptake of Lumia prompted many analyst to write down Nokia survivability chance and resurgence of the same.

Nokia in the last few years tried to develop many mobile OS and subsequently scrapped it. The master of mid-priced phones, Nokia launched Asha series value filled device and consumer received it well. The Chinese device OEM’s came out with low priced Smartphone changed consumers adoption pattern. After three plus years of research and development, Nokia developed Asha Platform which is designed for Low to medium range smartphone.

This week Nokia launched $99 Asha501 smartphone based on Asha Platform in Thailand and Pakistan to target geographies to play volume game. Nokia already taking online booking in India and is expected to launch Asha501 next month. The low priced differentiated feature packed device is expected to gain good traction in emerging countries.

BY launching Asha platform attached Asha 501, Nokia sent clear message to consumers and competitor that Nokia filled the vacuum in their portfolio post Symbian OS decision. It also indicates Nokia strategy to target volume play with Asha platform and Premium consumers with Window Mobile OS based Lumia.

This time around misstep which happened during Lumia device availability due to component shortage may act as major blow. Nokia supply chain efficiency to deliver volume and availability of device in multiple geographies may turn competitive heat towards Competitors.

Microsoft Window Mobile Adoption Challenge – Apps Developer Support, Availability & Downloads

Microsoft made another attempt using Window and Build conference platform to attract developer communities in its fold by offering attractive incentives. Microsoft wants to build on their limited success with WM8.0 and redefined WM8.1 by showcasing differentiated consumer and prosumer connect capabilities. Microsoft CEO Ballmer used conference to highlight application segment attached growth in application download and revenue but at the same time confirmed their position in application market dominated by Android and iOS. According to Telegraph analysis, global applications download per month from Google play crossed 2.5 Bn Whereas its  2Bn from iOS ,Apple supported apps store. On contrary, download from Microsoft apps store only crossed 200 Mn per month. The number clearly indicates Microsoft desperation to mark its presence in application domain and create more stickiness around its product line.

Microsoft Strategic Move – Opening Up Bing Platform for Developers

Microsoft CEO, Steve Ballmer announced during Window and Build conference that the Bing.com would be termed as intelligent services and is going to be embedded across Microsoft powered devices, services and 3^rd party application to offer seamless information access to consumers. Developer can leverage Bing platform attached technology to develop differentiated user experience feature for their own services and Windows centric services or products or dynamic applications. Microsoft latest announcement to offer developer driven search service interoperable Microsoft Windows, Windows Mobile, Windows Media and Other product line is going to help Microsoft to position its product more effectively. The move is an indirect approach by Microsoft to attract developer on its Bing Platform and reposition itself to fight off with Search Engine Leader “GOOGLE”.At first look, the Microsoft offer may attract millions of developer in their fold

Samsung Seamless Shift from OS dependent to OS Agnostic Smartphone Player – Differentiating Proposition

In Feb 2013, Samsung announced to move out of home grown BADA smartphone OS and collaborated with Intel to develop Linux based Tizen OS. The move was quite surprising as BADA was gaining in smartphone OS segment. Samsung redirected most of the BADA resources to support Tizen OS and demonstrated the glimpse of Tizen OS. The move clearly indicated that Samsung strategic move to focus on growth of Android OS and not to pose any threat to Android through BADA. Any tactical move to increase BADA OS penetration was accessed as shifting slight focus from Android to BADA. The moving out of home grown BADA OS also perceived positively by Android developers and showed Samsung commitment towards Android. Interestingly, Samsung also positioned its WM8.0 OS supported devices and marked its presence in the Windows Mobile OS segment. Even though, Samsung is releasing less number of WM 8.0 devices compared to Android but showed its support for another OS. Now they collaborated with Intel for Tizen and also getting support from few large device manufacturers. Tizen OS is fully compatibles with HTML 5 and also helping BADA ecosystem players to port their applications to system as per the Tizen specifications. Samsung tactical strategy is to be in the central of not all but most of the mobile operating system ecosystem to get clear picture of happening in other mobile operating system segment. By supporting mobile operating system they are also creating opportunities for their chipset and storage business segment. It enables them to identify the gap and way around of the gap to be truly innovative device manufacturer. Samsung learnt from Nokia about the impact of owning mobile operating system rather than supporting it to win over Industry support. Nokia closed ownership environment and dominance on any proposed changes in Symbian offered opportunity platter to Google to garner support from industry Mobile ecosystem players. By venturing into Android, WM8.0 and Tizen; Samsung also communicated to mobile operating system segment that they are least dependent on any of the mobile operating system and capable of shifting gears from one to another mobile operating system based on the change in consumer and prosumer usage pattern.

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.

Sony and LG helped Android Mobile OS to capture 92.8% market share in Spain

Spain is one of hardest hit by financial meltdown, high unemployment running in high double digits. To handle financial crisis, government launched stringent austerity program to control fiscal deficit, win over International investors for their government bonds and Potential bailout package from EU. The economic environment change impacted mobile subscriber usage pattern. On analysing Comtech data, subscriber are looking for Sub $150 - $200 range smartphone and the changed pattern helped Android mobile OS for smartphone to cross 90% market share level. The contributors of higher Android Mobile OS turned out to be Sony and LG. Sony and LG captured 19% and 17% of the total market share driven by Sony Xperia and LG Optimus series models. The biggest loser of market shares are all high end brand and the reason are well explained in the start of post. It is great to see that other smartphone makers on Android markers are tuned themselves to mark their strong presence. It’s an achievement for Android OS, Product, Platform and Application providers. The number clearly indicate that its not impossible to be 90% market share player in very competitive domain