Lumia 900 takes on local market

Nokia and Microsoft have teamed up with MTN to bring the new flagship Nokia Windows phone, the Lumia 900, to the local market.

The handset will be available in SA from 28 June, exclusively from selected MTN stores on an MTN Anytime 200 contract for R369 per month over 24 months, including a 75MB Internet bundle. Like the LTE version of the handset released in the US, the local release will offer high-speed functionality using the DC-HSPA technology, with download speeds of up to 42Mbps.

The Lumia 900 builds on the design of the Lumia 800, with a larger 4.3-inch AMOLED ClearBlack display and bigger battery. It also has an 8MP rear camera and a 1MP front-facing camera. An introductory offer will see the first 200 customers (at MTN stores in Morningside, Gateway, Canal Walk and Port Elizabeth) being able to buy the limited edition Lumia 900 handsets, embossed with the Batman logo.

Catering for entry-level smartphone users and the youth market specifically, MTN also announced it will soon offer the Lumia 610, which is touted as the most affordable smartphone in the Lumia range.

Gerard Brandjes, VP for Nokia in South and East Africa, says the company is building “real momentum” with the Lumia range in SA, and the partnership with MTN is a huge step forward. Nokia has officially released the Lumia range in 48 markets so far. “It's just 16 months since our new strategy was announced, and we've already brought multiple devices to market, so we are feeling very positive about the outlook for the future.”

The success of the Lumia devices is not only key for Nokia, but for Microsoft and its Windows Phone Platform. Microsoft SA MD Mteto Nyati says: “In almost all segments, we have been the underdogs in the beginning. And in many instances, people believed we wouldn't make it, because our competitors were too strong. But it's in our DNA as a company to take up big challenges and to see them through successfully.

“We are obviously faced with new challenges in the smartphone and tablet space. These are huge growth areas and right now we are not necessarily on top as a company. But we like a challenge. We want to be the leading company in this space.”

World Wide Worx MD Arthur Goldstuck says the dual-channel HSPA capabilities of the Lumia 900 will be a major differentiator for those users who want speed at all cost. “Even though we can't expect full 42Mbps speeds, the speed of the phone will be something that has never been seen before.”

“However, this feature is undermined by the tiny data bundle that accompanies the phone. If it lives up to its speed promise, that data will be finished in half a minute. This reflects the mobile data conundrum in SA, and why BlackBerry is so successful here.”

Manager of product, services and innovation for MTN SA, Mike Fairon, defends the data bundle, saying: “When you look at what our customers are actually doing, we see that 75MB is suitable for the vast majority of users who just want to send and receive e-mails and check their social profiles. Of course, there are those super-users who will need to purchase extra data, but we have various options available for that.”

Fairon added that MTN is looking into fair use policies for future data offerings similar to that of the BlackBerry Internet Service.

Goldstuck notes the pricing of the Lumia 900 is good, but it puts it on a par with the Galaxy S3, HTC One X and the iPhone 4S. “The experience of using the Lumia 900 is every bit as good as with its rivals, with a more accurate virtual keyboard and a far better camera - particularly in low light. However, Nokia first has to get it into users' hands for them to discover these advantages, and that will be its biggest challenge.”

Goldstuck says, depending on its pricing, the Lumia 610 could have better potential in the local market. “The most successful phone to date in SA is the Nokia 5130 XpressMusic, so if Nokia can leverage that success with the 610, it could capture the part of the youth market that is not just looking for the 'cool' factor but for compelling features. The music offering could also make up for the lack of data.”

According to Brandjes, music is fundamental to Nokia's strategy in SA, and across Africa. “We are very proud of the fact that we currently offer the largest source of legal music downloads in the country with over 12 million tracks in our music store which includes a considerable portion of local music.”

Goldstuck says that, while sales figures are not available, the impression he has on the ground is that the Lumia range is yet to have any real impact on the local market. “Nokia's problem is that consumers are waiting for the release of Windows 8 to see what happens - it would have been useful for them to declare whether the current devices will be upgradable or not.

“From what I've seen, Windows 8 is a dazzling OS that has the potential to capture the imagination of consumers. But, it's the same issue as with BlackBerry - there is the need for certainty about the road map ahead.”

When asked about the possible Windows 8 software update for the Lumia devices, Nyati says the path ahead is “not necessarily clarified”, but that he believes this is not hurting sales. Looking ahead, Nyati believes South Africans currently using platforms like BlackBerry will be looking to switch, and this will be the one of the key trends happening in the local mobile space over the next 18 months.

According to Goldstuck, SA is entering a period of massive smartphone growth, with 2013 set to be the year in which smartphone sales are expected to outstrip feature phone sales for the first time. “Only then will we have a clear picture of the market. So it's too early in the positioning of the brands to declare anyone dead in the water. Windows 8, BlackBerry 10 and the iPhone 5 are all expected soon and will be critical to defining the market.”

Brandjes echoes this sentiment, adding that smartphone adoption is growing by between 30% and 35% month-on-month. “The question must be asked though of what exactly is meant by the term 'smartphone'. People often forget that there is a significant proportion of the SA population who are still living from hand to mouth, and a smartphone by the current definition, at the current price point, is simply out of their reach.

“That is why we are actively driving the smartphone 'lite' concept with our Asha range of handsets which provide all the functionality at a fraction of the price. But, of course, on top of that drive at the lower end of the market we are also driving devices like the Lumia 900 at the top end.”

While recent estimates have shown that Samsung and Apple control over 50% of the smartphone market and 90% of the profits, Goldstuck says there is a problem with drawing conclusions from a 12-month trend line. “If you look at the market over five years, Nokia was the dominant phone maker for a long time. If we were to only look at a very short timeline, then at one point everyone would have written off the iPhone. There's still a lot of growth left in the mobile and tablet markets, so no one should be giving up,” says Goldstuck.