Nokia Seeks to Regain Ground with New Smartphones

Strategic Insights -

Nokia, the world's biggest maker of mobile phones, is trying to claw back ground lost to Apple Inc.'s iPhone with its new N8 smartphone. The company has taken "knocks" in past years and the N8, along with other new smartphones showcased Tuesday, will help to win back market share, according to Anssi Vanjoki, the company's outgoing smartphones chief. Despite this effort, industry experts are skeptical that the N8 will be enough to take down Apple's iPhone.

Key Takeaways:

  • Nokia's new N8 smartphone has the most preorders the company has had for a product, according to Anssi Vanjoki, the company's outgoing smartphones chief.
  • The touchscreen N8 is a step in the right direction, offering more multimedia capabilities, but whether it will move Nokia's market share upwards is debatable, according to Per Lindberg, an independent technology analyst at MF Global in London.
  • Android phones are becoming a "formidable force" in the market, posing a challenge to Nokia's market share, according to Lindberg.
  • Nokia shares have slumped more than 60% since Apple introduced the iPhone in June 2007.
  • The company's market share in smartphones, the fastest-growing part of the industry, has shrunk.
  • Nokia cut prices to defend its market share, sacrificing profits to do so.
  • The company has introduced a family of new smartphones based on Symbian 3, a revamped version of Nokia's main smartphone operating system.
  • The C6, C7, and E7 smartphones will begin shipping by year's end.

Statistics:

  • 60%: Nokia shares have slumped since Apple introduced the iPhone in June 2007.
  • 3.5 inches: The size of the screen on the N8 smartphone.
  • June 2007: The year Apple introduced the iPhone, leading to a decline in Nokia's market share.
  • 2010: The year Nokia introduced the N8 smartphone and other new devices.
  • By year's end: The C6, C7, and E7 smartphones will begin shipping.

Sources:

  • Bloomberg News
  • The Toronto Star