Nokia's launch of what its CEO, Stephen Elop, called “the first real Windows Phone”, has been called a turning point for the Finnish cellphone giant, as it tries to regain its ailing position in the smartphone market.
At Nokia World, in London, yesterday, Nokia finally unveiled the Lumia 800 and 710 devices, based on the Windows Phone platform.
The Lumia 800 is very similar in appearance to the Meego-based Nokia N9, but features some significant changes. Both the Lumia 800 and 710 have 1.4GHz processors, hardware acceleration, a graphics processor and 16GB of internal memory.
The devices are differentiated by camera resolution, basic body design and price, with the Lumia 800 and 710 catering for the high-end and mid-end of the market, respectively.
MD of Strategy Worx Steven Ambrose is currently at Nokia World, and says: “The new Nokia Lumia range showcases Nokia's manufacturing prowess and possesses a sleek, smooth finish that is hard to put down.”
Ambrose says, ultimately, the market will decide if the phone connects with their expectations, but the combination of Nokia's manufacturing ability with the Microsoft OS is “very competitive” among the other platforms and devices in the market.
“They are actually very innovative in most aspects, and extremely well integrated, and should find converts fairly easily,” says Ambrose.
“Some of the key services that look truly competitive are navigation and maps - historically a Nokia strength, and the free music system, called MixRadio, which offers on-device unlimited music consumption, which will definitely differentiate the ecosystem, even from other Windows Phone devices.”
Back in the arena
Other analysts have also welcomed the release of the new handsets. Senior industry analyst for ICT Europe at Frost & Sullivan Saverio Romeo says the renaissance of Nokia has started.
“The European telecommunications industry can be pleased to see one of the most successful stories of its history revamping.”
Romeo says Nokia provided a clear strategy for its future direction. “On one side, there is a strong focus on emerging markets, where the future opportunities of the mobile industry lie. On the other side, there is a decisive move into the smart mobile device battleground in the developed world, with the clear intention to be back and as big as in the past.
“Certainly, it did not pass unobserved that for the first time the key speakers at the event were not Finnish. Clearly, Nokia has given its renaissance over to US minds,” notes Romeo.
“I think the European telecommunications industry has a lot to think about in this regard. Europe is not able anymore to influence the change in telecommunications. It is not the centre of gravity anymore. It is the periphery of a world located in Silicon Valley and Asia.”
Romeo says Nokia is finally down in the arena, ready to take back its leadership in the smartphone market.
“The Nokia Lumia is not just a Windows Phone. It brings together some key Nokia technologies such as location, the design tradition of Nokia, the software from Nokia ecosystem and Mango from Microsoft.”
A bit plain?
It's not all sunshine and roses for Nokia, however, as some analysts still remain unconvinced. Reuters quotes director of research at telecoms analysis firm CCS Insight, Ben Wood, as saying: "These devices are a good start, but the reality is that they are pretty much plain vanilla Windows Phone products. The real fruits of Nokia's and Microsoft's labours will come next year, but it remains a Herculean task to recapture this lucrative market from Apple and Android."
However, Ambrose says Nokia clearly saw the precipice last year, and made bold and significant changes to the entire business.
“What is impressive is how fast the changes have taken hold, and in a mere eight months Nokia has gone from announcement to shipping product.”
According to Reuters, Nokia's market value has halved since February, as investors are unsure whether it can ever regain its once-commanding market share. The company's smartphone sales have dropped 38% compared to a year ago.
Ambrose says: “Crisis often precipitates change and with Nokia, this change has been hugely positive. The new products are leading in many respects and should assist in propelling Nokia back onto the stage as far as mobile is concerned.
Best yet
“The mobile phone arena has never been more dynamic, with Nokia and many other manufacturers ending 2011 with some of the best devices we have ever seen,” says Ambrose.
“More than just technical prowess on the actual handsets, the latest generation of mobile phones also display a maturity in their services and applications that is overdue and very welcome.”
The Lumia range will not be available in SA until early 2012, but Ambrose says the handsets may be worth the wait.
“They present significant competition to the best from other manufacturers, and should finally propel Microsoft Windows into the forefront of mobile operating systems.”
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