Has Nokia Really Lost Its Decision Making Ability Due To Intense Competition ?

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Nokia’s endeavor to contend rivals such as Apple and Google in battlefield seems once in the vague after decline of its Smartphones’ sales in the Q4 last quarter by 31%. Less competitiveness of its own OS “Symbian” led the company to work on Microsoft’s Windows platform last year. And also, the emotional attachment of new CEO of Nokia- who served Microsoft 2008-2010 prior to join Nokia, last year–might force to the company to work together with Microsoft . However, Nokia had high expectation from its windows Phones- based Lumia models in Q4 last year.

The company sold over 1 million Windows phones-based Lumia brand in Q4 last year.  Lumia phones are available for sale in Europe, Hong Kong, India, Russia, Singapore, South Korea and Taiwan. The awaited models have just given its presence in the United States—a version capable to run superfast 4G broadband network. Despite of all these, the company lost $1.38 billion in Q4 last year.

President and CEO of Nokia—Stephen Elop—said, “In the war ecosystems, clearly there are some strong contenders already on the field, and with Lumia, we have demonstrated we belong on the field. An acceleration of the anticipated trends towards lower-priced Smartphone with specifications that are different from Symbian’s traditional strengths.”

Nokia’s income from the phone is declining with dizzying pace than the volume of handsets sold. Presently, the company is getting intense competition from cheaper Android handsets, which has forced to slash down the prices of its Smartphones. The average price of the Smartphone declined to € 140 ($183) in 2011 from €154 ($201) in the Q4 of 2010.

Nokia’s global handset shipment declined 8% annually to 113.5 million units in Q4 2011. The volume of handsets increased due to huge sales of Nokia’s low-end dual SIM models in emerging market like Southeast Asia. Nokia sold 4 million units of its newly release Symbian OS–S^3—based Smartphone in Q4 2011, which is 4 times that of total Windows Phones-based Lumia sold.

There’s a comprehensive global collapse in the one year period with Nokia, considering the case of Motorola, it has also collapsed but it has taken three years. In Q4 Apple sold 37 million Smartphone which is approximately twice as Nokia’s 19.6 million Smartphone sold during the same period last year. What has happened with Nokia? It has still a great faith over Microsoft and also, it  has declared to release Lumia 900–which will run on Windows Phone platform. If Nokia really wants to die, it’s better to die with its own OS instead of Microsoft Windows.  However, number of Symbian Smartphone sold in last quarter was far better than Microsoft’s Windows Phone.

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