Nokia Is More Likely to Survive Than RIM: 10 Reasons Why

 
 
By Don Reisinger  |  Posted 2012-06-14 Email Print this article Print
 
 
 
 
 
 
 

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 wasn€™t always like this. There was a time when RIM and Nokia were on top of the mobile market€”one 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, one€”Nokia€”has a better chance of surviving than the other. 

Here€™s why Nokia may be able to survive and perhaps even recover in today€™s fiercely competitive mobile market.  

1. Microsoft€™s backing 

One of the most important things playing into Nokia€™s 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. It€™s willing to drastically change 

It€™s 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. That€™s a mistake. 

3. The installed base is huge 

Although Nokia isn€™t as popular as it once was, the company is still shipping more than 300 million handsets a year. RIM hasn€™t come close to matching that and never will. Until Nokia€™s shipments drop significantly€”by a couple hundred million€”the 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 successful€”and will remain so in the coming years€”is its penetration in emerging markets. As nice as the iPhone might be, it€™s expensive for people looking for new devices in emerging markets. Nokia€™s products, however, are not. RIM has little-to-no presence in those emerging markets. That€™s an issue for RIM€”and a real virtue for Nokia. 




 
 
 
 
Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 
 
 
 
 

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