Comments on: Apple takes another bite out of Nokia http://blogs.reuters.com/breakingviews/2010/06/16/apple-takes-another-bite-out-of-nokia/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: pandemonium http://blogs.reuters.com/breakingviews/2010/06/16/apple-takes-another-bite-out-of-nokia/comment-page-1/#comment-2915 Sat, 19 Jun 2010 16:03:24 +0000 http://blogs.reuters.com/columns/?p=3292#comment-2915 “Nokia pinned the blame for its lower expectations on several causes: competition in high-end phones; the weak euro increasing the cost of goods sold; and a shift in product mix to low-margin devices.”

Really? Those are the primary causes and not the patent disputes of Apple using technologies that Nokia spent millions developing (among several other companies as well)?

@ulludapattha – That was a lot of effort wasted to subverted tangents.

“People living in big cities have the extra money to upgrade their mobile phones to the newer trendy smart-phones like the iPhone.”

Particularly funny since Nokia has several models which make all of Apple’s products combined look like Tonka toys.

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By: pandemonium http://blogs.reuters.com/breakingviews/2010/06/16/apple-takes-another-bite-out-of-nokia/comment-page-1/#comment-2913 Sat, 19 Jun 2010 15:38:23 +0000 http://blogs.reuters.com/columns/?p=3292#comment-2913 “Nokia pinned the blame for its lower expectations on several causes: competition in high-end phones; the weak euro increasing the cost of goods sold; and a shift in product mix to low-margin devices.”

Really? And not on the several patents that Apple has been infringing on for several years from Nokia, among other manufacturers?

I smell a zealousy boastful bias on this article.

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By: ulludapattha http://blogs.reuters.com/breakingviews/2010/06/16/apple-takes-another-bite-out-of-nokia/comment-page-1/#comment-2882 Thu, 17 Jun 2010 14:58:03 +0000 http://blogs.reuters.com/columns/?p=3292#comment-2882 Nope. Nokia does not have those two hopes.

First, it may be still controlling about a third of the entry- level mobile phones market. But, for how long? If you look at its sales figures carefully in the so-called emerging markets it is slowly but surely dwindling due to cut-throat price competition by cheap Chinese phones flooding the markets previously controlled by Nokia in India and many African countries. A new Indian mobile phone maker Micromax is challenging Nokia in India and gaining rapidly market share from Nokia and others in this entry-level segment.

Secondly, the services such as email and music are of no use to the rural population in those emerging markets. To whom will the poor farmer send an email, when he can talk to the person concerned by phone? Have you ever tried writing an SMS on a normal 12- button mobile phone? It is a frustrating experience even for the technically qualified. How would a basically illiterate person or one with a modest primary school education cope with this? And the veeeery slow data speed on a 2G network is not inspiring at all.
Thirdly, The LifeTools service has some use to the rural population but the service by which money can be sent by a mobile phone is full of security threats. When money transactions by mobile phones are risky even in the highly developed economies of the west, how can you guarantee, that malicious hackers and criminal elements do not cause havoc in this service in those poor countries? Mobile phone viruses are already a nuisance in the west. How can a poor peasant afford to lose his money by sending it over an insecure mobile network?

Music can be heard for free almost on every street and corner in a country like India. Who would like to pay for the slow download speed on a 2G network even if Nokia were to offer the music download free? The cost of the on-line phone time will still have to paid by the phone user. Connection breakdowns and communication dropouts are common in developing countries. People get used to such on-off connections. But, music downloads on such a connection can be very frustrating indeed. In a country, where you cannot avoid listening to popular music loud and clear almost everywhere this Nokia slogan of “Comes with Music” seems to be superfluous. It may appeal to the youngsters living in metropolitan cities. But, that is not the place, where Nokia is at its strongest. People living in big cities have the extra money to upgrade their mobile phones to the newer trendy smart-phones like the iPhone.

So, Nokia is at present like a big tanker lost in a storm with its rudder and compass broken. It does’nt know in which direction to steer?

Nokia has had all the time and the resources to find an answer to Apple for the past three years. It has now squandered this opportunity and is destined to turn into not a Japanese but a Chinese maker of bulk – class mobile phones. But, that’s not where the beef is in the sandwich.

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By: strategist http://blogs.reuters.com/breakingviews/2010/06/16/apple-takes-another-bite-out-of-nokia/comment-page-1/#comment-2881 Thu, 17 Jun 2010 13:41:04 +0000 http://blogs.reuters.com/columns/?p=3292#comment-2881 If Apple was concerned about market share they wouldn’t persist in the exclusive deal with AT&T which alienates a substantial fraction of potential iPhone users.

Their competitors have to look beyond that to understand both their strategy and their success, which is why they’ve controlled the smartphone segment so effectively.

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