Tag Archives: fall of nokia

Nokia Fall

Would you still buy a Nokia ?

I have to confess my Nokia N70 is getting old. It already has undergone a liver (read – battery) change operation, the epidermis has decayed & the inner skin layers are exposed. Old age has taken a toll on its audible range as well & the sound drums aren’t that flamboyant anymore. Though the rest of the parts are functioning as desired but sometimes out of blue it gets an epilepsy stroke as well, the screen goes white & a couple of heavy breaths (read – beeps) & whoosh !! Everything comes to a standstill. Only after an emergency CPR while switching the power button hurriedly & slapping the device a couple of times brings it back to life. In-spite of all this (& more) I still love my phone. After all it has stayed with me through thick & thin, a companion thru every adversity & success. We have taken falls together but we both sprang up – you can trust the durability of a Nokia anytime.

Yes ! It’s true that I have been an ardent Nokia fan. I have developed a trust over the brand which is time tested (& multiple falls tested :) ) & after all the brand has been the number one brand for so many years in India & worldwide as well. It had a majority share in mobile phone market & sold over 100 Million phones in 2009 in India. Symbian OS powered most smartphones in the world. Up to 2008, the best marketing machine in mobile telecoms had been Nokia.

But that is passé now. Just have a look at the below graph of Nokia share price which tells the whole story in one shot.

Launch of Touch Screen phone, Android OS, plethora of smart downloadable applications & yes iPhone have taken the market by storm. Apple is masters at marketing & they have revolutionized the smart phone industry. The necessary extra fillip was provided by Google launching the Android operating system for mobile phones which have additionally contributed to the fall of Nokia. It has lost its brand share worldwide with contribution from the Indian market as well.

I still remember my MBA class (IIFT Delhi) where the prof asked us to name the oldest company in the world which is still in operation. There the discussion concluded that most companies don’t survive that long & change is constant for the survival of a firm especially for firm where technology is the main core competency of the business. With the advent of any new technological innovation such non-flexible firms tend to die fast. I guess (and afraid) that Nokia might just not be one of those firms in the making.

Though some respite could be brought by C.K. Prahalad’s Bottom of Pyramid theory which is generating some fortune for the company (at least in India) & keeping it afloat in the India markets where price is major consideration and smart phones are still considered expensive & out of reach of most Indians. Here Nokia still sells like hot cakes & still the most trusted brand among the mass Indian user but for the smart phone category the future seems bleak for the firm.

Ok. Now back to my ailing phone & thus quest for a new one. Unfortunately Nokia doesn’t appear in this list as to my horror they don’t have Android & more, they don’t have a true touch screen smart phone, yet.

I am eagerly looking to buy a new smart phone & get hooked onto the Android-wagon. After huge & extensive search I have been able to zero down on the below models.

  1. Samsung Galaxy S2 I9100 - Priced at around 30 K.
  2. Samsung Galaxy S LCD I9003 (Midnight Black) – Priced at around 20K.
  3. Samsung Google Nexus S (Black) - Priced at around 20K.
  4. Sony Ericsson XPERIA X10 (Black) - Priced at around 22K.
  5. Apple Iphone4 -Priced at around 34-35K.

Please help me with this!!!!

Which one do you think is a good buy, or which ones do you think I should not even consider.

And as our one marketing prof said….Mobile phones are definitely a high involvement product :) ..so please assist me in this decision making :) .

TIA. Puneet