Nokia's Windows Phone Strategy Will Fail: 10 Reasons Why

 
 
By Don Reisinger  |  Posted 2012-01-11
 
 
 

Nokia's Windows Phone Strategy Will Fail: 10 Reasons Why


Nokia is getting serious about its Windows Phone 7 plans this year by finally bringing its Lumia line of devices to the United States on T-Mobile's network. In the coming months, Nokia plans to offer many more Windows Phone 7-based handsets all in the hopes of establishing itself as a premier smartphone vendor.

However, its chances of actually succeeding in that market are slim. Sure, Nokia is a well-known company with a huge following around the world. But what the company has shown so far has not been impressive. And unless it has an ace up its sleeve that it hasn't played yet, it doesn't appear that its strategy is good enough to overcome the Android onslaught and make Windows Phone 7 a respectable competitor to Android and Apple iOS.

Try as it might, Nokia appears lost in the mobile space with Windows Phone 7. And although it might want to regain its past glory, it appears that at least in the next few years that just won't happen.

Read on to find out why Nokia's Windows Phone plans will fail miserably:

1. The product designs are subpar

When you look at the Lumia line of Windows Phone 7-based devices, it's hard to find too many redeeming qualities in their designs. There's nothing unique about the devices, and it's hard to find anything in their designs that would make folks want to buy those products instead of the countless others on store shelves that come with more innovative features or eye-catching designs.

2. Nokia's brand loyalty is waning

Nokia's brand loyalty is on the decline. Countless customers who previously bought the company's handsets are now switching to other products with better features, performance and applications. Meanwhile, Nokia has done little (if anything) to repair its ailing brand. At what point will the company wake up and realize it needs to regain lost customers?

3. Microsoft has lost mobile customer trust

Speaking of trust, Microsoft has also lost its way in the mobile space. The software giant once had a large, loyal following. But now, with better options available elsewhere, it has fallen far behind. And like Nokia, it has done little to fix it. Unfortunately, Microsoft has lost the trust of mobile customers, and that will only hurt Nokia's Windows Phones.

4. Windows Phone 7 can't attract enterprise customers

Although it's not often cited, the enterprise is unarguably the most important sector of the mobile space for any company not named Apple. Yet Microsoft has done little to augment the appeal of Windows Phone 7 to the enterprise, and now enterprise customers are looking elsewhere. That alone could be enough to hurt Nokia's chances of succeeding in the mobile space.

Nokia Struggles to Draw Market Attention


 

5. Consumers would rather go with Android

On the consumer front, Nokia is in an even worse state. It faces an uphill battle to get consumers to make the switch to Windows Phone 7. Meanwhile, Google's Android operating system is increasingly becoming a consumer favorite and its market share is exploding. If Nokia really wanted a better chance of succeeding, it should have bundled Android with its devices. But it didn't. Now it faces the prospect that its Windows Phone 7-based handsets are going to languish on store shelves.

6. The price is cheap (but that's not a good thing)

Nokia is trying to attract customers to its Lumia 710 on T-Mobile's network by offering it for just $50 with a two-year contract. At first glance, that might seem like an offer too good to refuse. But further inspection reveals that the phones don't have the features and performance to seriously challenge models priced around the $200 mark, like Apple's iPhone. Everything else is viewed as a low-priced, obsolete alternative.

7. The marketing is off

When viewing television, listening to the radio, or reading online or print publications, try to find a single, high-quality ad from Nokia or Microsoft promoting the Lumia line of devices. When one tries doing so, they'll find little to attract customers or make them even want the devices. Hasn't Nokia learned anything from Apple? Success in today's marketplace relies upon solid marketing, including massive advertising. At least so far, Nokia hasn't taken that advice.

8. The first device should have been the winner

As noted, Nokia is currently selling the Lumia 710 in the States. The issue with that is the device is one of the lower-end handsets the company sells. Nokia plans to offer the high-end Lumia 800 and Lumia 900 eventually, but by then, consumers might be left with a bad taste in their mouths. The smart move would have been to launch the high-end devices first and leave the lower-cost Lumia 710 to the end. Every other company follows a similar strategy and succeeds. What's Nokia's excuse for not following suit?

9. There's no fanfare

Did anyone really care that Nokia was launching its Lumia 700 on T-Mobile's network on Jan. 11? There wasn't much buzz about it. And when sales fall short on that device, Nokia will be able to point to that as a key reason. Hype is everything in the mobile market. The companies that have it succeed, and those that don't have it fail. Unfortunately for Nokia, it has no hype to rely on, which can only mean one thing: failure.

10. There's a general lack of market understanding

This time of the year is a special one for the industry. Through Jan. 13, the Consumer Electronics Show will be in full swing and companies around the globe will be showing off their best and brightest products. What's more, just about everyone's attention will be on that show. With that in mind, why would Nokia want to launch a smartphone during CES? Wouldn't it make sense to wait a week, so it can get more headlines? Nokia's management seems to misunderstand the technology industry. By doing so, it's hurting its chances of succeeding.

Follow Don Reisinger on Twitter by clicking here 

 


Rocket Fuel