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Nokia next in line for an about-turn?

Two years ago Nokia had a global smartphone market share of around 29%. That number has fallen to around 3% today, despite the smartphone market more than doubling over the same period. Nokia’s CEO, Stephen Elop, bet the family silver on a Windows-based strategy and gave it two years to pay off. Well, two years have passed and sales of 4.4 million Lumia’s have disappointed analysts and markets, and likely him.

But it’s not all bad news. In the same period Nokia sold almost 80 million ‘dumb phones’, down on the previous year but clearly a market where they remain strong. What are the chances Nokia will drop it’s Windows strategy and put everything into lower-end devices for emerging markets? The Asha is doing pretty well there, and may be it’s saviour. Telecom TV have a great analysis of Nokia’s options – “Is Asha the future for Nokia?” – which you can read here.

Big tech companies have made embarrasing U-turns before. In 2011 Hewlett Packard announced it was going to sell its PC and tablet manufacturing units only to change it’s mind later. And last summer Apple decided its withdrawal from the EPEAT environmental ratings scheme was probably not all that clever and decided it wasn’t going to leave after all.

Nokia look like two businesses at the moment. At the high end of the mobile market they’re clearly struggling with little to cheer about. At the low to medium end they’re in a totally different position. Overall, Nokia are struggling, and it’s sad to see. If they’re to survive they may need to be brave. Perhaps a U-turn is what they need. And if they decide they need one, they won’t have been alone.

1 comment

1 Lisa { 01.30.13 at 7:12 am }

Hope they’ll come up with a really–well, not just good but with something incredible and different. Somehow, Nokia got a special place in our hearts.

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