Too many smartphones already sold for RIM and Nokia
Tuesday, June 19, 2012 at 2:59AM The situation that RIM and Nokia find themselves in is not good at all, as we all know. The new BlackBerry and Lumia phones have had little impact on the wider market or the general public.
The current BlackBerry phones do not deserve to do well and I suspect that BlackBerry 10 will also not be enough to stop the slide into oblivion for RIM. There is nothing in the hardware or software that is compelling for the average consumer to choose above Android and iOS.
As for Nokia, choosing Windows Phone as a platform has not worked out so far and I can't help feeling that things will not change in the next 12 months while it tries to build up momentum for a platform that was simply too late to the game. Windows Phone is great, but it is fighting against millions of potential customers who are not willing to change platforms.
And that is the big problem facing both companies. People are highly unlikely to move from Android or iOS and there are already many millions of people on each platform. Some will move from iOS to Android for extra freedom and some will move from Android to iOS for the eco-system, but I can only assume that very few will move outside of these two.
I don't like saying this, but I feel that RIM's time has gone and that Nokia needs to build Android phones to succeed. It would take a major mis-step by Apple or Google for the other to have even a glimmer of hope.
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Reader Comments (7)
The problem with the Android space is that everybody and their brother is making an Android phone and it'd be hard for Nokia to make the kind of impact they want (and the money). Sure, an Android phone with the form and hardware of a Lumia 900 or 800 would be drool worthy, but so are a lot of other Android phones out there. Nokia needed a uniqueness that Windows Phone gave it. Problem of course is as you have stated. Who really wants a Windows Phone or is willing to abandon iOS or Android for it?
I agree, Nokia should develop Android phones. Nokia can deliver many more form factors than other manufacturers like the E90
Nokia definitely need an Android phone to their range (although their relationship with Microsoft may not allow this). As far as I am concerned, a move from Android to Windows Phone (or iOS for that matter) would be a UI downgrade.
It would be better to have more platform options than just Android and iOS (and Windows Phone, but it's lack of traction doesn't make it a serious competitor yet).
Windows Phone's only hope is if there's a tie-in with Windows 8.
If Microsoft can persuade developers to write Silverlight apps for Windows 8 and make sure that all Silverlight apps automatically work on Windows Phone then it has a chance.
If MS goes beyond that and gives Windows Phone a full .Net framework then it has a better chance (not sure if they've already done this).
That would be just great. Windows Phones will have a lot of work to do before getting on their feet due to a damage policy and I believe Nokia can't afford that. It's true the Android market is saturated with devices, but Nokia still holds the mark of excellence in built quality. Many people used Nokia before and know about their quality standards. So, if Nokia does go the Android route I'm sure many users will buy Nokia devices.
And just to think a tablet with such a stunning look... that's what is missing about Android: a top manufacturer!
Nokia's move to WP7 was partially driven by Microsoft investment. Microsoft needs a strong partner to help drive WP into a strong third place in the market, Nokia needs the financial and technical love that Microsoft offers.
Microsoft is in a win-win position here - almost all Android OEMs pay Microsoft a license fee, whilst Google and Apple are both paying Exchange Activesync license fees. Most people forget about this when discussing profits from the smartphone market. Whilst few numbers are available, Apple sold 156m iOS devices in 2011, if they pay MS £8 a license that's over £1bn that Microsoft can pour into Nokia, Marketing and development should they desire. That's without Android income.
The difference between RIM and Nokia, RIM = running out of money + sales falling; Nokia WP7 sales rising, + cash in the bank + wealthy partner with a desire to succeed.
Nokia have made losses in the couple of years. Share price has dived.