Nokia have to find a new chief executive officer.
The former overlord in the Apple iPhone mobile phone and Google about Android, under the impact of weakness in the field of smart phones fully shown. In order to restore the downturn, Nokia has adjusted the sector institutions, increase the input into the smartphone business, and now, more thorough, simply coaching change. “Wall Street Journal,” said Nokia this is because “the company’s current chief executive Olli-Pekka Kallasvuo is difficult in a rapidly changing high-end smart phone market, Nokia continued to lead the development.”
Although the Nokia smart phones based on Symbian platform, is still maintained very high market share, but its smart phones and the development momentum of development has been significantly behind rival Apple and Android camp, the challenges companies face declining performance.
Over the past 10 years, Nokia’s market value of nearly 250 billion U.S. dollars from the way down to the present 400 billion, while Apple’s market value rose from less than 25 billion U.S. dollars to 2,300 billion U.S. dollars. Since the Apple iPhone on the market, Nokia’s share price has fallen by 67%, while the July 21 morning news, Apple’s fiscal 2010 third quarter results, Apple’s revenue 15.7 billion, up 61%, setting record high , quarter profit of 3.25 billion.
Nokia was forced to go all out to decide the future of this smart phone battle. Nokia’s executive vice president of ansi in “counter from now on” in Bowen said, will be Symbian and MeeGo to fight back, “It is undeniable that we, as challenger, there will be a hard fight,” he said, ” I and the whole Nokia team are ready! ”
Market share being eaten
Apple’s iPhone in the world conquering a city, Google Android camp has been expanded, Nokia’s market share in smart phones are quickly eroded. 2 weeks ago, Nokia’s stock price fell to its lowest level in more than a year, in the coming months may continue to decline.
Market research firm Gartner said Nokia’s first quarter of 2010, the main operating system Symbian smartphone market share has grown from 48.8% last year dropped to 44.3%; and iPhone market share from 10.5% to 15.4%, Android system from 1.6% to 9.6%.
Well-known agency YouGov survey recently on global consumer demand for smart phones were investigated in the past 8 months, the purchase of Nokia smart phones as the user target range increased from 46% down to 33%.
2010 January-February, after Motorola’s clamshell ME600 mainstream market, Samsung’s own system, “Bada” mobile phone S8500 release, HTC has released more disposable Desire, Legend, HD mini three models, the high-end smart phone market extremely hot. While at the same time Nokia is bringing E52, 5235 (in 5230 on the basis of just replacing the battery, and enjoy the Nokia Music Store unlimited download service), 6303i, and C5, the price is not more than 2000 yuan. Nokia is clearly more popular in low-end products.
Beijing Nokia dealer 9 Post Communications Leader King manager told Die Zeit reporter: “Nokia’s new phones recently little update feeling more slowly. Series 60 fifth edition of the touch-screen machines prone to hang, unresolved emotional issues such as locks, the system does not too mature, the software has vulnerabilities, can only be upgraded to make up. and 1,000 yuan for low-end machines as cost-effective, practical, it has been very popular. ”
Wang Bin consumer electronics industry experts told Die Zeit reporter, Nokia is the amount won by a large number of machines, decreased single standardized procurement costs, the low-end Ji can give good profit margin for the Nokia, which is Nokia which survival chips.
However, in the low end of the main market, Nokia’s dominance is being challenged, faced with China and other parts of fierce competition from makers such as Samsung, LG, and the severe impact of China’s cottage. Nokia Chief Financial Officer Dimoyiha hair tira so that “low-end competition in the market is very painful,” “will continue to face challenges in the third quarter.”
Analysys International telecommunications analyst Wang Liu-sheng told reporters on the Times Weekly, Nokia fell short of performance is the industry’s inevitable. “You can see different market levels are the emergence of a rival Nokia, which will be a certain market, Nokia original diversion, Nokia innovation in recent years a number of deficiencies, the slow adjustment in the product line.”
The absence of revolutionary smartphone
YouGov survey of electronic communications sector, said president of Russell Feldman: “Google Android Market and Apple’s App Store software in 2010 have shown a strong momentum for expansion of extension, the situation was more difficult leader Nokia, in order to maintain the leading position in mobile phones , we must quickly launch a new software library and a new Nokia product. ”
In fact, iPhone’s most successful model is to train its users to become willing to Apple’s App Store software and applications within the pay groups. Apple for the software and application development provided by an online sales platform and billing channels, and with them to carry out profit-sharing ratio of 3:7. While iPhone’s hardware configuration enough for a lot of cool games and applications that can be played on this machine. This is to attract and gather a large number of third-party software vendors.
“Apple is in the construction of an ecological chain, they can control the ecosystem of hardware, software, value-added services to each link, and thus the strength of strong words with operators, but also get high profit margins.” Wang Liu-sheng told reporters Weekly Times.
Another rival Google’s model is the only do operating system platform, and then let the phone companies are free to use this platform to achieve the mobile Internet empire built, which will sell all advertising Android machine.
By comparison, Nokia, since the launch in 2006, after the high-end smart phone N95, it no longer a revolutionary product. Bin that Nokia has been in the high-end smart machine can not be a breakthrough because it is not Internet-based operating system design.
“Monopoly barriers to innovation, this sentence in Nokia who has been well confirmed.” Wang Bin said, Symbian system for many years there has been no significant change, nor for the mobile Internet and touch screen to make any response, the smart phone in addition to housing different, the function was similar.
Bin analysis of the product, the Nokia can not keep up with the current development trend of mobile phones, the screen is small, the weak performance of the mobile Internet, not cool, the aging operating system; R & D, European natural that slow the body are fully in Nokia expression, they can not face the introduction of mobile phone products quickly to market changes; in the enterprise development strategy, although the announced restructuring ovi Nokia Internet platform, but did not fully prepared, mainly mobile platform can not carry this Internet program. “For example Symbian v5 platform even more people the impression that in response to touch screen trend of emergency for, but simply Symbian v3 the keyboard to the touch, and can not multi-touch.”
“Nokia’s biggest problem is not grasp the pulse of the mobile Internet development, resulting in a lack of application development, Symbian system is not suitable for many of the characteristics of mobile Internet requirements,” said Wang Bin.
Nokia multimedia platform in the development process of the performance of slow, lack of innovation, not far from the same Apple iPhone, and Google Android operating system compared to, so its smart phones have been unable to obtain market dominance.
Hair force the operating system
Nokia’s counter first start from the development of new operating system.
In 2008, Nokia introduced the Maemo operating system based on linux kernel in order to revive the high-end mobile Internet market. However, the N900 uses Maemo operating system, has been encountering in the sales of “Waterloo.” Nokia N900 had hoped to help recover the lost smart phone market, but the results of 5 months after the release of N900 sales of less than 100,000, that its sales this year, also at the falling. The industry believes that, Maemo is a new operating system, available resources are very small, and the encounter was two rival Apple and Google, its failure is also a wizard.
“Nokia is aware of resources is the key to the success of the entire operating system, but not great in the resource development effort, that by virtue of their influence to developers will take the initiative to develop Maemo software resources, it overestimated its own position in the market . “Wang Bin analysis.
However, Nokia seems to have a chance.
2010, the world’s largest chip maker Intel announced a free mobile phone operating system to create MeeGo plan, the system integration of Nokia’s Linux Maemo and Intel’s Moblin, will maximize revenue using the most optimal way and minimize the complexity of developing and differentiated forms.
Nokia Consulting Director GONG Wen told Die Zeit reporter Philip: “Series 40, Symbian and Nokia mobile phone operating system MeeGo three key points are essential.”
Speaking MeeGo, GONG Wen Fei said: “From any sense, Nokia will need high-quality products and rich multi-functional products and solutions. But it needs a popular Internet application, the application of popular smartphones. Symbian and Series 40 to promote the popularity of smart phones, so that more hundreds of millions of people can connect with Internet services. This is the Nokia envisaged in the future. the future, the most exciting products should be based on MeeGo operating system, MeeGo operation system has a great future. ”
However, GONG Wen also stressed the Philippines, Symbian OS will continue to develop, it is still today the most popular smartphone operating system. “Our new Symbian v3 phones coming soon, first in the third quarter of this year.”
Nokia spokesman Dawson (Doug Dawson), said: “In the next period of time, Nokia’s N series of smart phones will use MeeGo operating system.”
But the industry believes that the future of MeeGo system uncertainty. “High-end market is now occupied by Apple and Google, Microsoft’s flagship in the high-end market, windows mobile 7 will also be out before Christmas this year in December, powerful competitors. Although the alliance with the Intel architecture is very powerful, but if you do not Nokia the effective integration of resources will end up with the same result as Maemo. “said Wang Bin.
Transformation of the Internet
Of course, Nokia has seen mobile Internet future.
In 2007, Nokia announced the beginning of transition to Internet companies. Head of its Asia Pacific marketing Will Harris said, “Our future lies in software rather than hardware,” and that Nokia can make money through software.
So, Nokia began to emulate Apple’s iPhone model, Apple’s App Store for the release of their ovi-line store, but so far, both applications store the number of applications or downloads to be far behind Apple’s App Store.
According to the latest statistics, the number of applications Apple App Store has reached 22.5 million downloads exceeded 5.0 billion times. So far, App Store for Apple to bring the 429 million U.S. dollars revenue, gross margin contribution, but Apple is only 1%. Therefore, the industry questioned the scale of Apple’s App Store than the much smaller Nokia ovi how can it benefit?
The industry believes that, because of Nokia software applications spend too much energy, it ignored the smartphone itself. This makes Nokia the first half of 2010 only launched 22 new models, much less than the second half of 2009, the 35 models.
“Nokia is not Google, not the rich Internet experience, and no good software production, and advertising sales experience, allowing Nokia to how to restructure the Internet, how to make money on advertising and other value-added services become very difficult, perhaps Nokia should pay for this high tuition. “Wang said.
However, in mobile phones Nokia is working on a revolution that is gaining ground-based user interface. Since the advent of iPhone, mobile phone manufacturers are studying how to better touch screen technology, Nokia is looking at how to make the user does not touch the phone, that make people more to look up the phone. This concept will rely on voice techniques, gestures, and other cutting-edge sensor technologies. For example, when the phone rings while driving, do not bow to press the call button, as long as waved his hand, you can call; and would like to use mobile Internet, they do not bow to set the link, as long as the cry “line”, the phone will open the network .
However, this revolution can the Nokia thoroughly before declining to become a reality, is unknown.
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