Nokia Banks on Smart Phones
- By Lawson Ovih
- Published September 13th, 2010
- ITWorld
- Unrated
Nokia Banks on Smart Phones
NOKIA, the world’s biggest cell phone maker by volume, will introduce new smart phone models this week to assure investors the company is on track to recovery.
Nokia, whose profit and share price have dived in the last few years, is now betting on the renewal of its line of smart phones, which could save the career of embattled Olli-Pekka Kallasvuo, the chief executive of Nokia.
The cell phone maker will unveil its new flagship model E7, which comes with a large touch screen and full keyboard. Nokia will also introduce to the public its new N8 model, which is the first phone to use the new Symbian 3 software, along with other new smart phones.
The N8, unveiled in April and due to go on sale later this month, stands out among its rivals for its 12MP camera, but has a slower processor than Samsung’s top model Galaxy S and the latest iPhone.
“As the N8 starts shipping and other devices are unveiled, Nokia will be hoping that it can lay the foundation stones for its recovery given the onslaught of competitive products currently hitting the market,” Ben Wood, director of research at CCS Insight, said. “It has made some big commitments on fixing Symbian and its first flagship product using the refreshed Symbian operating system. Failure is not an option,” Wood said.
Nokia’s Symbian operating system has yet to attract a large number of software developers interested in creating compatible applications, a key selling point for high-end cell phones.
Nokia controls 40 per cent of the smart phone market with its Symbian software, but has lost its leading position among the most expensive models to easier-to-use phones from Apple and Research in Motion.
Nokia’s failure to roll out successful high-end cell phones, which have fatter margins, has hit the company’s profit and share price hard over the last few years. Its stock has dropped to roughly a third from mid-2007 when the iPhone went on sale.
Last year, Apple surpassed Nokia as the handset maker generating the largest total profit, despite selling only one iPhone for every 13 phones Nokia sells.
Kallasvuo, whom industry sources say Nokia is looking to replace, has promised the usability of Nokia’s Symbian smart phones would not be an issue by the end of this year.
NOKIA, the world’s biggest cell phone maker by volume, will introduce new smart phone models this week to assure investors the company is on track to recovery.
Nokia, whose profit and share price have dived in the last few years, is now betting on the renewal of its line of smart phones, which could save the career of embattled Olli-Pekka Kallasvuo, the chief executive of Nokia.
The cell phone maker will unveil its new flagship model E7, which comes with a large touch screen and full keyboard. Nokia will also introduce to the public its new N8 model, which is the first phone to use the new Symbian 3 software, along with other new smart phones.
The N8, unveiled in April and due to go on sale later this month, stands out among its rivals for its 12MP camera, but has a slower processor than Samsung’s top model Galaxy S and the latest iPhone.
“As the N8 starts shipping and other devices are unveiled, Nokia will be hoping that it can lay the foundation stones for its recovery given the onslaught of competitive products currently hitting the market,” Ben Wood, director of research at CCS Insight, said. “It has made some big commitments on fixing Symbian and its first flagship product using the refreshed Symbian operating system. Failure is not an option,” Wood said.
Nokia’s Symbian operating system has yet to attract a large number of software developers interested in creating compatible applications, a key selling point for high-end cell phones.
Nokia controls 40 per cent of the smart phone market with its Symbian software, but has lost its leading position among the most expensive models to easier-to-use phones from Apple and Research in Motion.
Nokia’s failure to roll out successful high-end cell phones, which have fatter margins, has hit the company’s profit and share price hard over the last few years. Its stock has dropped to roughly a third from mid-2007 when the iPhone went on sale.
Last year, Apple surpassed Nokia as the handset maker generating the largest total profit, despite selling only one iPhone for every 13 phones Nokia sells.
Kallasvuo, whom industry sources say Nokia is looking to replace, has promised the usability of Nokia’s Symbian smart phones would not be an issue by the end of this year.
