Recently, it has been announced that Microsoft and Nokia are going to create an alliance in the smartphone industry to challenge the notorious Google and Apple devices. For this deal to work effectively sacrifices have to be made; strategies have to be thrown in the bin, accesses have to be licensed and compromises have to be made. So is this an act of desperation or a smart tactical move? I believe it’s a bit of both.
Nokia is still the “world’s largest handset maker but admits that it has lost out to Google Android and Apple in the smartphone market.” So the days of the 3310s are over and now is the age of touch screens, you have to wonder how Nokia failed to keep up while this transition from phone to smartphone was happening. Somehow RIM’s Blackberries, Google’s Androids and even Apple’s iconic iPhones have been able to pick up a nice portion of the market share unchecked. I refuse to say lack of innovation is the reason because that is ALWAYS the reason and is overused by marketers in this current age.
Where did all go wrong?
From what I see, it could have been down to a misunderstanding of a differentiation strategy. In the world of smartphones, having a powerful camera or bigger memory doesn’t count as being different because there’s a high chance that everyone else has the same features as you. If you want to be different use the Blackberry Hype as your inspiration. RIM turned a business phone into a mainstream smartphone with just one feature, unlimited messaging for a small fee a month. Some would say “There’s just unlimited text right?” yes but everyone has it so you should too. Now having a blackberry has become as much of a social requirement as having facebook. The iPhone has ping chat but BB’s are way more affordable so there is a bigger customer base. The more people who have access to a blackberry, the more the reason to have one, just like Facebook the more the merrier. And the payment system is a cunning one, giving the illusion that BB messaging is free when it’s just part of your pay monthly price plan. Sounds similar to how the internet seems free because you have unlimited access but really there is a monthly fee which someone has to pay.
It seems Apple has changed the game with the infinite collection of apps available to us all and Google’s Android has penetrated the market with their user friendly OS, Nokia seemed obviously distracted still playing Snake.
A new gateway to the web is a new venture for Microsoft.
Now Microsoft wants a piece of the pie, they always have based on their past short-lived collaborations with Motorola, Palm and what not. Although this seems to be the one with the most potential as Nokia has the best mobile hardware and Microsoft has the resources. Microsoft needs to have a foot in the market because smartphones are becoming just as versatile at browsing the net as laptops and they cannot afford to allow this gateway to the computer world to go begging.
Can this partnership work?
It has to or Nokia’s market share will continue to decline and Microsoft will have an even looser grip on the world of Web 2.0. However, there is still something to offer to the smartphone industry which could be achieved through this partnership. For instance, Blackberry devices break down/freeze/malfunction more easily than the first batch of Xbox 360s in 2005. This is a chance for Nokia to display their expertise to produce hardware which is reliable but affordable. Apple may be considering making cheaper models of the iPhone but they are in danger of watering down their brand image if they follow this through. Also it is unheard of for users nowadays to not use the internet through their smartphones so this could be an opportunity for Microsoft to improve the users experience on the web through their mobile devices. There are no cutting corners with this venture and it would take pure luck to successfully challenge RIM and Apple but the industry is moving fast. Although in my opinion the PC tablets market looks more appealing than smartphone at this point in time.
