Nokia facing stiff competition.. again!!
Nokia new CEO Stephen Elop has got a massive challenge ahead: Nokia leading position into the mobile handset market has been challenged and almost eroded by a strange bunch of competitors.
Gone are the days in which you had to face a faster, or more creative manufacturer, today the duel is about creating hype and communities, experience and personalistion, create a new brand equity your customers will buy.
To state the truth, Nokia has still got a strong foothold into those growing econonmies, namely India, China and Indonesia (around what, 3bn people, say 70% potential phone users?), where actually the current disposable income does not allow the market to move away from “normal phones” and embrace the smartphone race..eventually not yet.
Overall Nokia seems to have dropped its stock price by a significant 32%, and yet it seems that stock analysts from reputed firms such as Jefferies are slightly overlooking the impact Microsoft may have with its Windows Phone 7 newly launched OS, coupled with top-notch handset manufacturers to create a nicely knitted value net. It may be an endless slide..but..
All in all, we will see how the market will respond to the upcoming business results Nokia is going to post in a few hours, and still, market should not forget Nokia has got some US$10bn cash in the pocket to support a “deadly weapon” development, a new product able to push competitors out of the market!! New N8 won’t do that at all…. is ti because of the phone or the Symbian OS, a lessser (seemingly) choice if compared to Apple OS experience or Android (and, again, Win Phone 7..)
It would be nice, it is always nice to see an older hero taking back its place!! Kind of romantic, isn’t it?!?