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.
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,nimbe 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.
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.
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.
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 […]
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 […]
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