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:
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.
4 - Copying with pride will get us nowhere When questioned in August 2007 about thesimilarity ofa concept interface - that Nokia has shown the same day to press - to the iPhone's interface, Anssi Vanjoki – Nokia’s Executive VP & General Manager of Multimedia responded by saying: “If there is something good in the world then we copy with pride.” That pride in copying got Nokia in problems and troubles, as they still fail to deliver, and when compared to what the iPhone can deliver, Nokia phones do not score high.
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 Users hate to carry an outdated or not-unique-enough phones.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.
