How does this happen?
The answer becomes clear when we look at a set of data. If we divide the Smartphones from feature phones table like this:
look at the structure of products, Samsung developed is shown to be almost entirely due to smart phones, While Nokia's stagnant growth seems to be one that doesn't have any pull smart phone.
It is even more apparent when seen mixed on other equipment such as percentage of the total.
Is a percentage of the total, Nokia has been narrowing your smartphone from a peak of 24% in Q3 2010 to 14% the previous quarter. In the same time the portfolio section of the Samsung smartphones of exploding from 10% to almost 50%.
Note that both companies have seen the mass of smart devices is not a contract. Samsung's level is nearly the same as it was in late 2007 and Nokia is lower than at any point in the last six years (maybe longer).
Samsung was able to transform your portfolio on your Smartphone, while Nokia has not done so. This type of transition can only happen from a clear strategic intent on the part of management. Market demand can guide you in any number of directions, but has a vision of the future is a measure of the performance of the big blind.
Nokia bets were made many years ago that there would be a continuing, substantial business in the "low level". And ultimately means lower feature phone. This strategy is demonstrated in last year's "the next billion" users. The decision was not due to see the products that will be hired for various jobs, but they will rank differently. In other words, segment customers by their ability to pay for the equipment, not the sort of work they were hired to do a mobile device.
Perhaps Samsung has not wiser, but they were more pragmatic. Not that the theory is flexible. They run with the off-the-shelf technology and managing the transition to the smart devices faster than anyone expected. It may not be a perfect strategy, but it beat a bad strategy.
I. 5 reasons why Nokia lost phone and sell leads an injury downgraded to ' junk '
Samsung overtook Nokia in the sales of mobile phones, mobile phone operator effectively ended 14 years of Nokia to produce goods in the world, according to IHS iSuppli and Strategy Analytics report.
According to the data of the IHS iSuppli, Nokia launched 83 million handsets in the first quarter of 2012, While Samsung launched 92 million mobile phones. The Strategy Analytics only slightly different, reports that Nokia launched 82.7 million mobile phones and Samsung released 93,500,000 total.
In the mobile phone industry, a 14-year leader is certainly impressive. However Nokia's leadership has fallen steadily over the past years for some very specific reasons. This is what Nokia has done wrong-or, Alternatively, what Samsung has done the right thing-that led to the rise of a mobile phone in another company.
1. Nokia is moving too slow
Nokia is a pioneer in the smart phone market, means the consumer to introduce smartphones Symbian OS Series 60 device initially in 2002 during his next five years, Symbian has had little trouble trouble maintaining a leadership position in smart phones.
But in 2007, Apple introduced its iPhone. With a touch screen application and operating system based on full, the iPhone has changed the definition of what a smart phone should be.
However, Nokia does not meet consumer needs and changes associated with it. Over the years, the Symbian platform age, and age that really shows when compared to iOS and Android are. At the same time, the smart phone market is booming-more and more consumers are choosing small Pocket PC instead of "feature" phones with WAP browser is boring.
On the other hand, Samsung is rapidly moving into the smart phone market. Granted, Samsung has the advantage of working from the ground up, While Nokia has a smart phone platforms with relative success, but it just doesn't want to give up. (The same can be said of RIM's Blackberry OS.)
"If you look at the Samsung a few years ago, they have not found on the Smartphone market, while Nokia and RIM are leading the Smartphone market", Alex Spektor, analyst at Strategy Analytics, told Wired. "It's a lot harder to be nimble and react to changes in the market if you are a top player."
2. Android Paid Off (Samsung) and Windows Phone has not ..., but (Nokia)
Samsung not only fast, it also bet on many platforms, including Android and Windows Phone-and it even has the tree house of your own garden leaves, Bada, just in case none of the others work out. But in the end, Android has been rewarded. And it has been handsomely rewarded.
According to the selected "Samsung Android that Spektor at the right time, and it benefited from the development of the platform "," because Samsung has been the dominant player in the Android space, they were able to ride the coattails of the Foundation there. "
Nokia, on the other hand, has spent his time focusing on Symbian that until recently the cooperation with Microsoft. But leading Lumia Windows Phone from Nokia has yet to pay off, the evidence is Nokia's first quarter profit.
3. Hurt on both ends
not only Nokia moves too slowly in the Smartphone market, it did not foresee the competition in the low segment of the market, either. Other manufacturers such as HTC, Huawei and ZTE from the attack in the lower level in the developing markets such as China.
"They also are tightening at the bottom of the providers of microfinance, the individual is not very big, but when you add them up they pose a lower risk level of the market," Spektor said.
4. Nokia has no panache
The classic Nokia brick phones-and other solid games on it-bring a lot of nostalgia. But there is a problem. Consumers, especially in developing markets, combined with a vast different technology Nokia name. And in today's world, with the latest and shiniest devices is important.
"Nokia has been sort of an old brand, has not had a new panache for it's Samsung as a brand on the market is considered to be a creation of Nokia has a heritage baggage-.. They are the ones who produce brick traditional candy bar phone, "Lin said.
Nokia does not advertise itself as a reformist, and frankly, It has not made many innovations in public. At least not until it entered the Windows phone space. 5
implementation is key
Samsung shines brighter than the Nokia, and many other manufacturers, are made. Apple's plan reflects Samsung's game of dazzling consumers with high-end line of Galaxy S Android called her.
"If you look at what Apple is doing very well, hosted phone under the name iPhone? It was a memorable, recognizable brand that consumers expect, "Spektor said. "Samsung has adopted an approach very similar to their top phone. Each year, consumers know that the new Galaxy S is coming. It helps build and predict consumer demand drives. "
However, Samsung also has an extensive portfolio of smart phone devices, some costing less than $ 200 with no contract, which attract customers who don't want (or can't afford) a high end phone like iPhone or Galaxy S. The company also has advantages in the production process of its hardware.
Unlike other manufacturers, Samsung has incorporated a company effectively vertically, making his screen, your processor; While Nokia has done poorly in recent years, it does not mean that it is not possible to make a comeback with Windows Phone. Nokia and Microsoft have no weaknesses, they have property.
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