Monday, April 30, 2012

Analysis: Even in emerging markets, Nokia's star is fading

Nokia phones once took pride of place in a Manish Khatri the Mumbai market, but now models made by Samsung Electronics to get the attention.
He has nothing against Nokia, he says, but it is better for business to push the most popular models.
This simple calculation is made in thousands of stores across India and similar emerging markets, where Nokia's rivals used to be a relative minnows.
For 14 years the world's largest seller of mobile phones, has been overtaken by Korea Samsung in the first quarter of this year, having already watched both Apple and Samsung leapfrog their lead in the lucrative smartphone segment last year.
In the popular story of Nokia's eclipse, it is Apple's iPhone that steals the light, but the company also loses its luster in the basic phone market, which has been a reliable generator of profits and led to the promise of years of strong growth in emerging markets.
No more.
Its a basic phone sales fell 16 percent in the first three months of 2012, and fell in four of the last five quarters, while competitors such as China, ZTE and Huawei have been growing rapidly.
In India, the second largest mobile phone market, with more than 900 million subscribers, Nokia's market has halved in the three years to 2011, when it sold 31 percent of the total 183 million handsets sold, according to Indian researcher CyberMedia.
Analysts say it is not able to keep with the changing tastes of the growing middle class, and, in a country where the thin-edge network operators do not want to subsidize phones, loses storeowners as Khatri, that influence buyers' choices.
"For vendors like us, we are faced with many problems from Nokia to get even the basic (demonstration phone) dolls to show the client," he said. "There is no push from the company."
He said his store, which sells about 500 phones a month, it is probably not a priority for Nokia, but Samsung was sending staff to visit.
LOCAL FAVOURITES
In China, the world's largest mobile phone market, operators began to play a more important role in selling phones, and this trend is working against Nokia.
"They prioritize domestic vendors on international companies," said analyst Pete Cunningham of Canalys.
In January-March sales here shrank 62 percent from a year ago. Its share of the market has been decreased to 24 percent last year from 39 percent two years earlier, according to research firm Strategy Analytics.
In Africa, too, its market slipped to 51 percent last year from 62 percent two years earlier. It is still before rivals because of its superior distribution on the continent, says Neil Mawston at Strategy Analytics, but must act to arrest the decline.
"Nokia is dried up like a puddle in the sun, and urgently need new products to refill the pool," he said.
Meanwhile, racking up losses, its shares lost more than three-quarters of its value in a year, and this week two agencies cut its credit rating to junk status.
Nokia says it is still investing to attract customers in these markets.
"Our mobile phones portfolio continues to be strong, especially in key markets such as India, Nigeria, Brazil and Mexico, where the Asha products receive a record high scores of consumers," said Mary McDowell, EGP Mobile phones.
She said the company would be announcing data plans for the new Asha 202 basic phone model with five operators in India on Monday.
Missing Touch
Analysts also said Nokia may be slow to react in a popular technology.
In emerging markets, for example, multi-SIM models were equal for people who want to take advantage of freebies doled out by competing companies, but there was no such Nokia phones until the middle of 2011.
Other expensive gap in their basic phone offering is a full touch screen model. Around 105 million such phones were sold last year globally, according to Strategy Analytics.
"Nokia has left the door open for Samsung and others to not give a full touch feature phone. The Koreans figured out three years ago, but Nokia does not have a product," said Ben Wood, head of research at CCS Insight.
"In the meantime, the prices of Android smartphones have fallen, and Nokia in the window of opportunity is almost closed."
Nokia is due to unveil a full touch 306 feature phone model in the coming months.
Slid Hall
"Nokia main challenge this year is to arrest the sharp decline in its flagship smartphone portfolio and use it to rebuild a positive halo-effect for the overall Nokia brand," said Mawston.
The company left its own Symbian smartphone operating system last year in favor of the largely untried Windows Phone alternative after Stephen Elop joined as general manager of Windows maker Microsoft. Symbian sales nosedived before the Windows models out on the ground.
This month began sales of the first Windows smartphones in China with an aggressive marketing campaign and huge advertisements in subway stations, in magazines and newspapers.
There are some positive noises coming from customers.
"I've just bought a new Nokia Windows phone and has not been widely used for its tile design, but the experience was quite good after half an hour. All the basic functions I need are there, and I'm beginning to think that Windows phones will," Wang Xiao said at his Sina microblog.
"Having an operating system is Windows-based does not excite me," said 22-year-old student Akshay Johar in New Delhi, looking at one of Nokia new Lumia models, but added: "The phone has great features, it looks good, the touch screen is a response. "
He is considering buying, he said.
About 27 million people need to make a decision this year, 55 million next year, and 94 million in 2014, according to analysts polled by Reuters.


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Saturday, April 28, 2012

Apple’s new iPad goes on sale in India

New Delhi (Reuters) - The new iPad on sale in India on Friday minus the hysteria that had marked the launch of Apple's latest tablet in the United States and nine other countries in March.
It was not consumers lining around city streets and no agonizing wait loyal fans waiting to get their hands on a new Apple device.
"We sell about 12 to 15 of the new iPads today," said Afzal Ahmed, a team leader at Apple Premium Reseller in New Delhi's Connaught Place. "Also, it was almost 40 which was reserved earlier."
"It's certainly not the kind of mania we saw with the previous iPads."
One reason could be the third generation iPad is more like an improvement, with high-definition "retina" display and better camera than the main innovation.
Raman Kumar, a 31-year-old businessman walked into a 7 in the evening in New Delhi's central business district, and bought a white 64GB wi-fi and 4G version - at 50,900 rupees the most expensive iPad on offer.
But the Apple fan, who already own the iPhone and the MacBook, said he may not get to use the device frequently.
"This is basically for my children to play games," he said.
A Reuters photographer in a store in Mumbai's Bandra district after saw a teenager and two executives browsing to the new iPad but said there was little evidence will be hot seller.
The new iPad on sale in India more than a month after the popular tablet computer was available in 10 countries including the United States.
The third iteration of the best selling device is a price between 30,500 rupees and 50,900 rupees in the Indian market according to the variant.
The iPad with 16 GB of memory that works only on wi-fi networks is the price of 30,500 rupees, while that can run on both wi-fi as well as fourth generation (4G) mobile networks costs 38,900 rupees.
The new iPad, however, is not compatible with the 4G LTE network currently available in India and customers will have to do with the 3G networks.
Bharti Airtel has launched India first 4G network in Kolkata this month and is expanding the high-speed network to Bangalore, Pune and Chandigarh in the coming months.
But the Indian networks are powered by a different radio spectrum band than those used by the 4G iPad, which is supported only on the networks of a handful of U.S. and Canadian carriers.
The iPad is the clear market leader around the world, and the new version with faster chips, fourth-generation wireless and acute exposure expected to cement Apple's lead.
Customers will have the option to buy the new iPad in black or white with 16, 32, or 64 GB of memory, and can choose a model that works only on wi-fi or in both wi-fi and 4G.
The company continued to sell the iPad 2 in India, but slashed their prices, with the 16 GB wi-fi model is now available for 24,500 for the 3G version will cost 32,900 rupees.
"The price is a little high, but who cares?" Said Hans Tenth, 26, a real estate consultant who has seen the device in a recent trip to Singapore. "It's iPad. I bought one for sure.


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Friday, April 27, 2012

Samsung Bests Nokia as World's Top Phone Maker

Two separate reports released today confirmed that Samsung has now struck Nokia as the world's top cell phone maker.
They were at odds, however, about whether Samsung or Apple is the most popular smartphone maker.
According to IHS iSuppli, Samsung shipped 92 million handsets in the first quarter while Nokia shipped 83 million. While Samsung has the whole was 13 per cent drop from the fourth quarter of last year, Nokia's total was 27 per cent drop, helping Samsung nab the top spot after 14 years of Nokia rule, according to iSuppli.
Rounding out the five, according to iSuppli, it was Apple with 35 million shipments, 5 per cent decline from the previous part, LG with 14 million, and RIM with 11 million.
Strategy Analytics reported similar numbers, putting Samsung at 25.4 per cent market for global handset shipments, followed by Nokia at 22.5 percent, and Apple's 9.5 percent.
"Five years after it captured the number two spot from Motorola, Samsung has finally become the world's largest handset vendor in volume terms," ​​Alex Spektor, associate director at Strategy Analytics, said in a statement.
Nokia's drop, according to Strategy Analytics executive director Neil Mawston, can be attributed to a decrease in low-end feature phone shipments, as well as the failure of the new Windows Phone-based Lumia line to compensate for the decline of Nokia's Symbian business.
Who is the Winner Smartphone?On the smartphone front, however, iSuppli put Apple in the number one, while Strategy Analytics indicated Samsung.
According to iSuppli, Apple has shipped 35 million smartphones in the first quarter to Samsung's 32 million. Strategy Analytics, however, said Samsung is the total was 44.5 million to Apple's 35.1 million. Nokia has landed at number three on both lists with 12 per cent of the market.
"With mobile phones now accounting for more than 40 per cent of Samsung's overall revenue, it is clear that the company's ongoing investments in smartphone hardware and software R & D pays off," said Wayne Lam, senior analyst for wireless communications at iSuppli. "The company not only Chasing the market shift to smartphones, but also occurring in other cell phone product categories, enabling it to capture the overall market lead."
Lam said Samsung performance is all the more impressive for their next smartphone, the Galaxy S III, not yet released. We expect unveiled in May 3 event in London. "This indicates a Samsung is likely to make further progress in the market in 2012," Lam said.


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