Nokia Is More Likely to Survive Than RIM: 10 Reasons Why
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NEWS ANALYSIS: Nokia and RIM are both in bad shape. Both companies are struggling in the mobile market. But when it’s all said and done, it looks like Nokia has the best chance of surviving.
Nokia and Research In Motion are not among the mobile companies that most people respect and envy today. Both companies have watched their market share plummet at the hands of Apple and Android, and their profits have evaporated with it. Meanwhile, both companies have suffered from a declining stock price as investor after investor decides that the best days of these companies are behind them.
Of course, it wasnt always like this. There was a time when RIM and Nokia were on top of the mobile marketone firm dominating the enterprise space and the other shipping more devices than any other in the world. RIM and Nokia were so far ahead of the competition that many believed they would never give up their top spots.
But in just a few short years that is just what has happened. Now both companies are on the death watch. Although both Nokia and RIM are likely to fail, oneNokiahas a better chance of surviving than the other.
Heres why Nokia may be able to survive and perhaps even recover in todays fiercely competitive mobile market.
1. Microsofts backing
One of the most important things playing into Nokias favor is its partnership with Microsoft. The software giant needs Nokia and its Lumia devices to succeed, so Windows Phone 7 can come closer to matching Android. That alone makes Nokia extremely important to Microsoft. The software giant just might dole out serious cash to prop it up if the worst happens.
2. Its willing to drastically change
Its important to point out that Nokia has expressed its willingness to make drastic changes to fix its business. The company has ditched Symbian, it has brought on new executive leadership, and it has inked serious deals with one-time competitors. RIM, meanwhile, has stayed the course. Thats a mistake.
3. The installed base is huge
Although Nokia isnt as popular as it once was, the company is still shipping more than 300 million handsets a year. RIM hasnt come close to matching that and never will. Until Nokias shipments drop significantlyby a couple hundred millionthe company will have a much greater chance of satisfying customers than RIM.
4. Remember emerging markets
One of the key reasons Nokia has been so successfuland will remain so in the coming yearsis its penetration in emerging markets. As nice as the iPhone might be, its expensive for people looking for new devices in emerging markets. Nokias products, however, are not. RIM has little-to-no presence in those emerging markets. Thats an issue for RIMand a real virtue for Nokia.
