Nokia, the currently $44 billion company, is suffering from global market share decline, mainly because of (among others) the $230 billion Cupertino, California-based Apple. In 1999, Nokia peaked with 203 billion Euros market value, the highest of any European company. According to a study released by Millward Brown Optimor in 2010, Nokia came in 43rd in brand-ranking, dropping by 30 places in a year, and losing 58% of its brand value. In 2009, Nokia posted its first loss since the company began reporting quarterly in 1996. In my book, it’s time for Nokia to learn few things from the name of their pain; Apple, which I summarize here in 6 points:
1 - Users want hyped touch-based solutions Hype, touch, coolness and desirability, those are the things missing
from Nokia phones. Prior to the iPhone era, Nokia was completely
convinced that mobile phone users do not want touch-screens phones,
based on the lousy performance of the Windows Mobile phones back then. I
believe that had it not been for Apple, we’d be still pressing keys and
suffering with Symbian nightmares till the current date.
2 - If we sue, they will sue us back
On 22nd Oct. 2009 Nokia filed suit against Apple, accusing it of
hitching a “free-ride” on its intellectual property. On 11th Dec. 2009, Apple filed a counter-suit accusing Nokia of the same thing. It’s getting uglier every minute, with both companies asking to ban the import of the other party’s products.
3 - Street smart CEOs tend to outdo lawyers with expensive suites
After joining Nokia in 1980 and holding many posts since, Olli-Pekka Kallasvuo
(OPK for short), a law graduate, became CEO in 2006. Steve Jobs, who became CEO of the decade in 2009, was called the Apple’s imperious, brilliant CEO who transformed American business by Fortune magazine. Nokia is reportedly looking to replace OPK, who might go job hunting by next month, according to WSJ.
5 - Launching a single new model every year is better than every week
Nokia is known for coming out with too many new models, like a new model
each week. A newly released Nokia phone can become something of the
past in 3 to 6 month time period. On top of that, those ‘new’ models
usually offer very similar features and functions. Users hate to carry
an outdated or not-unique-enough phones. On the other hand, the iPhone
smashing success proved that many users can and will buy a new model
every year.
6 - Arabs and half-Arabs can and will make us miserable
By birth, Steve Jobs is half Syrian,
and the Middle East was Nokia’s favorite playground, where it enjoyed
selling its high-end phones with comfy profit margins. All was good and
green until the iPhone took that region by storm, and it became the new
trend for its users. To help keep its market share, Nokia lowered its
prices and watched in pain while its profit margins dwindled in that
region.
