Nokia Turnaround faces another Bump as Flagship Smartphone N8 faces Power Problems

20 Nov, 2010
Green Investing

Nokia is trying to turnaround its sinking fortunes with a radical change in strategy which involves New Hardware – N8,Software – Meego Operating System with Intel,AMD and Management – Elop from Microsoft.However the changes don’t seem to be working as of now.White Box Mobile Phones from China continue to erode Nokia’s marketshare in emerging markets while Google and Apple finish it off in the high end smartphone segments.N8 with its 12 Megapixel Camera was supposed to be Nokia’s answer to the iPhone and Android handsets Galaxy,Incredible and Droid.However N8 is already facing teething problems with Delays,Lack of Sex Appeal and the latest  power problems with some of its handsets.This is not going to do any good to Nokia’s smartphone prospects as it lacks the aura of the iPhone.Despite some Signal problems,iPhone sales have continued to power through while Nokia does not have anything near the same brand power.It is playing the role of a challenger despite its dominant marketshare in the world smartphone market and can’t afford any missteps.

N8 Has Power Issues: Nokia – Tech2

There’s a recent spate of complains that the Nokia N8 is not starting up, and this has been noted by the Finland-based company. Nokia has confirmed the report of their new Symbian 3 baby.

Nokia Executive Niklas Savander says that “a very small number” of people had complained about the powering issues and that a replacement is covered in the warranty offered by the company.

Could Local Indian Mobile Davids Micromax,Spice Beat Global Goliaths Nokia,Samsung with Low Cost $100 Android Smartphones

13 Oct, 2010
Samsung,Telecommunications,USA

Google’s Android Operating System promises to be even a bigger game changer in the mobile handset market than iPhone.The Android Operating System which is open source and free has found a massive following amongst the general population.Recent Surveys point towards the increasing popularity of Android beating  the iPhone Operating System.While the current generation of Android phones in the Development Markets like Motorola’s Droid,HTC’s  Desire and Samsung’s Galaxy S are quite expensive with prices upwards of $400,the new generation promises to cost much less.Note Nokia has lost a huge amount of Indian marketshare in 2010 with the entrant of local Indian mobile makers like Spice,Lava,Micromax,Olive,Fly etc.These small handet producers have brought in a huge amount of innovation stealing marketshare from established Mobile Companies like Samsung,LG,Motorla and Nokia.Now these companies are partnering with Google to launch cheap affordable Android smartphones for as low as  $100.Note the current crop of Android Phones in India still cost a bomb and are out of reach of 99% of India’s population.

Could $100 Android Phones from Local Indian Makers threaten Global Giants like LG,Samsung,Nokia in US and Europe as well

While the quality of local Indian made phones are still quite poor with lots of complaints,these companies have recently got a lot of funding and support.With Mobile Handsets fast becoming a commodity with mobile apps and services becoming the more important factor,Global Handset Hardware Companies are seriously threatened.With success in one of the biggest,fast growing and competitive markets,could these small handset makers penetrate global markets as well.Micromax which is the most successful amongst the host of small,nimble Indian companies has already starting marketing its phones in the Middle East.With low cost $100 Android phones it could lead major prices wars in the West as well.The fat margins on smartphones enjoyed by Apple,Motorola,HTC,Samsung,LG and others could be a thing of the past.Its an event that cannot be underestimated by investors in these stocks.As the sharp fall in Research in Motion and Nokia shows,the mobile market is a fast changing one and the “Hero” (pun intended) of today can easily become zeros of tomorrow.

Google Inc. working with less known handset makers to target middle class Indians – ANI

In its attempt to become a significant player in India’s huge wireless industry, Google Inc. would reportedly allow several less known Indian handset makers to release low-cost devices that include the technology giant’s Android operating system in the coming months.Google is banking largely on a crop of inexperienced Indian smartphone manufacturers including Micromax Informatics Ltd., Spice Mobility Ltd., and Olive Telecom to make Android phones in the 150 dollar range, and eventually reduce it to a100 dollar level so the middle class Indians could be targeted, it added.

New Delhi-based company Micromax is hoping to release its first Android handset around Diwali early next month, and wants to have at least four Android phones by March. The company hasn’t finalized prices but is aiming for around 200 dollars, a person familiar with the company’s plans said.

Should you buy Nokia as Meego,N8 and a new CEO Elop from Microsoft try to change Nokia’s Fortunes?

10 Sep, 2010
Green Investing

Nokia losing out to Apple and Google

Nokia the Finnish Mobile Leader has been facing reverses on all fronts since the past 2 years.Technology Game Change Apple has totally changed the Mobile Market with the introduction of the “iPhone”.Google has quickly followed with its Android Operating System proving to be a very strong challenger to Apple’s iPhone dominance.Motorola,Samsung and HTC have ridden Google’s coattails to resurrect themselves in the smartphone market to the detriment of older leaders like Nokia and RIMM.In fact I had earlier written that RIMM and Nokia should merge to combat their diminishing influence in the Mobile Market to survive.

Nokia has also been losing out in its Indian Fortress to local players and Samsung.It has shuffled divisions and management once too often without any change in its downward trajectory.There was little reason to think that Nokia could turnaround its descent into obsolence in the face of stiff competition from Apple and Google.However new product introductions,partnerships and a radical change at the very top suggests that Nokia might have a good chance of turning around.

But Things are Changing

For Nokia Things seem to be Changing in the Following Ways

1) New CEO Stop from Microsoft - Nokia has appointed a new CEO Stephen Elop from Microsoft who comes from a non-Finnish and non-Nokia background.This is a first for Nokia and a great move as the previous CEO Olli Pekka had overseen a huge 70-80% fall in the company’s value.

2) N8 - Nokia is introducing a new Smartphone N8 whose features and price points would suggest that it would be a big hit.Its earlier smartphones like N900 have failed miserably compared to Blockbuster Phones from the Competition like the Motorola Droid,HTC Incredible and the new Samsung Galaxy S.However a fantastic 12 MP camera,AMOLED Screen,HDMI connectivity would make you think that N8 should be a runaway hit at price point of $500-550.

3) Meego – Nokia is  introducing a new software platform Meego in collaboration with Semiconductor Leader Intel which will be based on the Linux Operating System like Android.Nokia’s earlier OS Maemo is being put in the cold storage while Sybmian will still be used in some devices.Meego has been progressing well and it could rival the developer community of iPhone OS and Android in the future.Today a Leading Operating System is a necessity for a smartphone vendor as 2-3 Operating Systems edge out others due to the strength of its developer community and Apps

Summary

Nokia is currently trading at extremely low valuations of 12x forward earnings and around 0.7x Sales which is extremely low by Technology Sector Standards.If the company can bring back the pizzaz behind its Smartphone lines,sell of its Nokia-Siemens unit the stock could easily double here.Nokia has one of the strongest brand names in the planet with great manufacturing and excellent global distribution.All it needs is a bit of Apple like Magic to return to its glorious days.

Microsoft faces a taste of its own “Free” medicine from Android in Operating Systems

13 Jul, 2010
Green Investing

Microsoft seems to be on the road to oblivion as it is failing to catch up with Google and Apple on multiple Technology segments.Microsoft looks more and more like a doddering dinosaur in comparison to its main competitors.While Apple is managing to churn out blockbuster products almost every year,Microsoft has had to stop its Kin line of smartphones just 2 months after its introduction at Verizon.Makes you wonder how much thought and planning went into the smartphone strategy of Microsoft . Now Microsoft is facing a direct onslaught on its main bread and butter business of s Operating Systems

Microsoft to face a  taste of  its own “Free” medicine in Operating Systems

Microsoft has long given away  “Free” software to decimate competition during its heyday in the 90s and early 2000s.Netscape is its most celebrated victim which fell prey to the “Internet Explorer” which was given free with the Windows Operating System.While Microsoft faced anti-trust lawsuits later on for using its dominant Windows O/S to edge out independent software companies,it still managed to destroy a lot of good business models.Now Microsoft is about to face the same strategy it so successfully used against its competitors.Android,Google’s new Operating System based on Linux,is being given away free to hardware vendors.Android has already managed huge success in smartphones with the like Motorola and HTC introducing huge hit phones based on Android.Windows is fast becoming a niche player in the smartphone O/S market just like Research in Motion and Nokia.Now Android threatens Microsoft in other Technology Hardware like Tablets.Apple’s iPad has made Tablets the hottest hardware category with every major PC company like Acer,Dell,HP planning new models.With Android being a huge consumer hit and free,these vendors will have little incentive to push Windows based Tablets in the Market.

Note Microsoft faces competition not only from Android but also Apple’s own proprietary iPhone Operating System.HP is also planning to use its own Operating System using technology from recently acquired Palm.Microsoft needs to quickly find newer radical ways to compete as its cash cows Windows and Office products face imminent death as technology paradigms change.

Microsoft CEO touts new Windows tablets vs iPad – Reuters

Microsoft Corp Chief Executive Steve Ballmer touted new tablet-style devices running the Windows 7 operating system from about 20 manufacturers at a conference on Monday, underlining the giant software company’s eagerness to counter the explosion of interest in Apple Inc’s iPad.New Windows-powered tablet or slate devices — small, hand-held, wireless computers — are in the pipeline from Acer Inc, Dell Inc, Samsung Electronics Co Ltd, Toshiba Corp, Sony Corp and a dozen other PC makers, Ballmer said at the company’s annual partner conference in Washington, D.C., which was webcast.

“This year, one of the most important things that we will do in the smart device category is really push forward with Windows 7-based slates,” said Ballmer. “This is a terribly important area for us.”Apple’s iPad, launched in April, has already sold more than 2 million units worldwide, and threatens to take customers away from Microsoft-dominated desktop computing.

Ballmer did not mention Hewlett-Packard Co, the world’s No. 1 PC maker, which has said it plans to build slate devices running the operating system devised by Palm Inc, which HP bought this year. However, HP’s logo did appear on a slide listing PC makers working on slates which was displayed as Ballmer spoke.

Microsoft’s Smartphone Entry proves to be Stillborn as Kin is officially killed

2 Jul, 2010
Green Investing

Microsoft has withdrawn its Kin range of smartphones after they proved to be a dismal failure.In my post Is Microsoft on the road to Oblivion,I had written how Microsoft’s slow lumbering pace under inept management has made Microsoft look like a laggard in the fact-paced Technology Industry.Competition between Technology Behemoths like Google,Apple and others has gone up a whole new level where Microsoft is finding difficult to compete.Its forte the Operating System and Office Suite of Applications are still massive cash cows,but its entry into newer Internet areas have proved to be a dud.Except for Xbox,Microsoft has failed to succeed in any of the newer areas.With even its core strengths also under threat from the ever expanding Google,Microsoft could soon face a slow decline

Microsoft’s Kin an Abject Failure

Microsoft’s Kin product range was doomed to failure from the very start.Its lack of features was glaring compared to the Android line of products from Motorola,HTC and Apple’s iconic  iPhone.Verizon the sole carrier of Kin was forced to heavily slash Kin prices even as rumors about Kin’s poor volumes was published in Technology Blogs.With Microsoft officially killing the Kin,those rumors have been proved true.Kin lacked in apps,games,developer community all of which have become essential in smartphones today.Even traditional heavyweights like Nokia and Research in Motion are finding the Smartphones Wars tough to negotiate.Microsoft the new kid on the smartphone block had to perform an Apple to make its mark.However Microsoft is no Apple and it has prudently withdrawn its dud offering.

Smartphone Operating System Market the new Battle Frontier

It will now focus on the Windows Operating System for Smartphones.The Mobile Operating System market is proving to be another engaging battle area with players like Apple’s iPhone,Google’s Android,Nokia’s Meego and Microsoft’s Windowns O/S .While Windows is the dominant players right now with Nokia’s Symbian,both seem to be underdogs.The consumers mindshare has been captured by Apple’s proprietary iPhone and Google’s Android Operating Systems.Nokia is trying to fight back with another Linux based O/S in the form of Meego in partnership with Intel.While Apple and Google are ahead right now,its too early to tell who will win in this war.

Microsoft pulls plug on Kin phones – Reuters

Microsoft Corp has pulled the plug on a new generation of smartphones less than three months after the company unveiled the devices in an attempt to catch-up with Apple and Google in the fast-growing mobile market.Microsoft said on Wednesday it had canceled plans to sell its “Kin” phones in Europe this Fall. The company added the internal team working on the Kin phones would be combined with the group working on Microsoft’s forthcoming Windows Phone 7 software.”We will continue to work with Verizon in the U.S. to sell current Kin phones,” Microsoft said in an emailed statement.

Uh Oh: Verizon Slashes Microsoft Kin Prices Early – Mashable

Mobile phones from Microsoft’s socially-inclined Kin line are already getting big price cuts just a month after they hit the market. hat’s good news for consumers, sure, but it might be indicative of poor sales for the handsets.The Kin One will drop from $50 to $30, and the Kin Two will see a 50% cut from $100 to $50 as part of a broader Verizon price cut initiative, according to the The Boy Genius Report.The Kin phones feature an innovative user interface that puts visual social activity feeds right on your home screen, and lets you share any item of interest with friends just by dragging it onto an ever-present social “Spot” icon. We were impressed with the design when we first saw it, and most everyone has probably noticed just how much marketing muscle has gone into the brand.

Nokia fast becoming an Also-Ran as Google and Apple win Developers in Smartphone wars

14 Jun, 2010
Green Investing

Nokia is fast losing Marketshare,Brand appeal and Pricing Power in the smartphone market.Despite a nearly 40% marketshare in the worldwide mobile market and an almost equal share in the Smartphone segment,Nokia has lost control.Apple and Google are driving the Smartphone segment with Nokia trying unsuccessfully to play catch-up .Other smaller players like Motorola,HTC,Samsung etc are partnering the Two majors in a fight for survival in this hypercompetitive Technology sector.Apple’s iPhone 4G promises to unleash another major battle as the user experience and functionality is taken to another level.

Now even Developers are abandoning Nokia’s Smartphone Symbian platform and migrating towards Google’s Android and Apple’s iPhone platform.This is a huge loss for Nokia as developers are crucial for the success of a platform.Microsoft won the PC Wars in the 90s as independent software developers migrated wholesale towards the Windows platform leaving competitors such Novell’s Netware and other Operating Systems.Developers have also been an essential component in making iPhone a huge success as Apple’s Application Store provides a huge number of innovative applications.Nokia needs to make major structural changes to change the course of its downward trends though it looks like an impossible task.Nokia has made changes to its Management and Divisions but a bigger surgery is needed rather than piecemeal changes.

Nokia Loses Battle for Apps as IPhone, Android Snare Developers – Bloomberg

As Nokia Oyj prepares to introduce its latest flagship smartphone, developer Jan Ole Suhr says he knows why the brains behind addictive applications are shunning the Finnish company.

“It’s difficult for small developers to invest in the smartphone segment of Nokia when nobody knows its future,” said Suhr, creator of Twitter application “Gravity,” which was showcased by Nokia when it opened its Ovi applications store last year. “The new shiny things aren’t available and there’s only the old-fashioned stuff, where it takes a lot of work to make the software look good.”Nokia’s 41 percent share of the smartphone market, the fastest-growing piece of the mobile-phone industry, has failed to make it the platform of choice for software writers. It is instead at the bottom of the pile, behind Apple Inc.’s iPhone and devices based on Google Inc.’s Android.

Developers of games, music, videos, media and other apps want to see if the N8, Nokia’s first device running the Symbian 3 system for touchscreen phones, delivers on promises of improved look and feel, an easier interface and operability across devices — in short, if it’s more like an iPhone. For many, the device scheduled to be released in the third quarter has been too slow in the making and may still disappoint.

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