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Nokia Losing its Cell Phone Dominance

supersandra writes "The Boston Globe is reporting that Nokia is struggling to offer features, such as cameras and flip-phones, that are luring customers away to phones by other brands such as Motorola, Samsung, and Siemens. While Nokia used to account for 1 in every 3 phones sold worldwide, they are down to 28.9 percent. Nokia plans to bring 35 new phone models to market this year to win back more users."

37 of 303 comments (clear)

  1. 1/3 is still just 33% by wankledot · · Score: 3, Insightful

    While Nokia used to account for 1 in every 3 phones sold worldwide, they are down to 28.9 percent. Holy Cow, they lost a whole 4.4%?! That's a really interesting way to make it sound like a big loss, when it's really not.

    --
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    1. Re:1/3 is still just 33% by stecoop · · Score: 5, Insightful

      No, they are down 4.4 percentage points but take (33 - 28.9) / 33 the orignal is the way to find the percentage change which is down 12.42%.

    2. Re:1/3 is still just 33% by angst7 · · Score: 5, Insightful

      It's 4% of the total market, but it represents a 12% loss within their customer base. Further the Cell phone market base is increasing at a fairly brisk pace, so it represents quite alot in terms of revenue $$$.

      Secondly, if you're an investor in a company that was the big player, and you see declines like this, you start thinking of other investment opportunities.

      It's a pretty big deal.

      --
      StrategyTalk.com, PC Game Forums
  2. Re:Hmph by ets960 · · Score: 4, Interesting

    Hopefully more competition will give us new features on phones and maybe a drive for better service.

  3. Man... by aptenergy · · Score: 5, Insightful

    Is it really worth it to have 35 new phone models?

    1. Re:Man... by micolous · · Score: 5, Interesting

      What happened to mobile (cell) phones that just make phone calls and send SMS? They're turning rather rapidly into PDAs.

      --
      SSdtIGFzIGJvcmVkIGFzIHlvdSBhcmUK
    2. Re:Man... by rokzy · · Score: 5, Insightful

      yeah and what happened to PCs that just let you add numbers and print dot matrix? They're turning rather rapidly into complete work and entertainment centres.

      d'uh, it's called progress. my mobile has calendar, email, internet, mp3 and lots more and that's the way I like it.

    3. Re:Man... by hendridm · · Score: 4, Insightful
      d'uh, it's called progress. my mobile has calendar, email, internet, mp3 and lots more and that's the way I like it.

      Progress is in the eye of the beholder. Someone like me who is interested more in battery life and not getting my phone banned from certain buildings because it has a camera on it might not agree. Not to mention I like my phone to have a simple-to-navigate phonebook, which I use extensively, rather than a complex menu for games, utilities, overpriced slow Internet, settings, etc.

      My two biggest desires in cell phones I buy are a) battery life and b) simple to use interface. Also, I want my ringer to sound like a telephone ring, not Flight of the Bumblebee or the theme from Cheers. I've always thought that the selection of ring-tones that actually sound like a telephone ringer are quite lousy on some phones, but thank god they offer a cheesy MIDI version of In Da Hood by 50 Cent.

    4. Re:Man... by rokzy · · Score: 5, Insightful

      I have a Sony Ericsson P900. the battery takes ~3 hours to fully charge then lasts for 4 days typical use. it has a huge touchscreen and stylus handwriting input (plus the usual T9, virtual keyboard), plus a very well designed 5-way jog wheel. so you can't get any easier input than that.

      as for ringtones, since it can play mp3s you can have anything you want, including old-fashioned ring. it also comes with a PC sync/dock and loads of internal memory (plus flash cards) so getting a new ring tone means drag and drop from PC file manager, not phoning some crappy company that will charge you $5/min for a barely recognisable sequence of beeps.

      smartphones are fantastic. people who bitch about wanting "simple" things are either ignorant of how well-designed phones like the P900 are, or are just too poor to afford them.

  4. 35 new models? by rgoldste · · Score: 5, Insightful

    The article says that Nokia's problem is not having features that consumers want, like clam-shell phones. Yet their solution is not to include those features in their new phones, but to offer consumers 35 different models this year (only 6 of those are clam-shell). I'm all about consumer choice, but does this make sense to anyone?

    1. Re:35 new models? by sjwt · · Score: 5, Interesting

      What i think the oohone market shoudl look at moving to is custom phones, or at lest semi custom.

      Order body X, featuers Y,ZA and C.

      I put off geting a new phone becase i couldnt get what i wanted, in the end i finaly had to get a compromise, but thats life i guess.

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    2. Re:35 new models? by crackshoe · · Score: 4, Informative

      on the other hand, clamshells break regularly - and the popular motorolla line of clamshells i've seen has an antena that ops off regularly, and breaks at the hinge periodically. on the other hand, i've checked my nokia non-flip phone 50 feet, bounced it off a brick wall and a car (all in one go) and the replacable plastic case was a bit scratched, but no actual damage to the phone.

      --
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    3. Re:35 new models? by BasilBrush · · Score: 3, Insightful
      The article also says they are having trouble doing camera phones, which is pretty clueless given that Nokia were the first outside Japan to offer cameraphones, and they are the biggest force pushing MMS.

      Having said that Nokia have been very arrogant in the last couple of years in thinking that their designs were sensible when everyone that didn't work for Nokia was taking one look at then and saying "What is THAT?". People actually like to have a rectangular numeric keypad layout with the speaker above, and the point where the user thinks the microphone is below it. It's not just the NGage that got that wrong.

    4. Re:35 new models? by Reverberant · · Score: 4, Interesting
      on the other hand, clamshells break regularly

      I know the reputation that clamshells have (and it's at least partially deserved) but having owned a variety of phones (flip phones and otherwise) IMO clamshells absolutely cannot be beat for convenience.

      One big issue I have is that I do a lot of travel, and depend on my cell phone for client communications. That means being able to answer the phone quickly when a client or contact calls (frequently I find that if I miss a call, it may be *days* before I can contact that client again).

      The thing I like about flip phones is that you open it to take a call, and close it to finish the calls. With non-flip phones, you can leave the keyboard unlocked to take calls, but then you have to deal with accidently dialing people when the phone is in your pocket or bag. Or, you can lock the keyboard, but that gets in the way when you want to make a call, or want to receive a call and you can't forget the unlock combination or the "quick key" to answer the call.

      My next phone will most definitely be a flip phone.

    5. Re:35 new models? by fermion · · Score: 3, Interesting
      What apes break these phones. I am the most ruthless mobile device owner I know. I have broken portable computers, PDA, Walkmans, MP3 players, mostly within the first year or two. Most of my working equipment has nicks all over it where I have dropped the device.

      OTOH, my startac, maybe three years old, is mechanically in very good condition. I had to replace my original because it got water in it and rusted the electronics. It may be that new phones are not as durable, but that is true across the board.

      Frankly I would be terribly afraid to carry around those long thin phones. I think it would be very easy to accidently develop enough torque at the midpoint to snap it. Even more silly are those phones that have a bulge for the antennae.

      Also, I have no need to pay for such overengineering. My temper is well under control, i stay away from psychos, and if I want at attack someone i live in a state where i can carry gadgets made for such a purpose.

      --
      "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  5. Design Problems by Smitty825 · · Score: 4, Insightful

    Nokia's phones have recently been designed really poorly, IMHO. They are either too big or have a weird, non-standard design that doesn't always improve functionality.

    That being said, for the most part, their GSM phones work better than most of their competitors for call quality and reception, but their competitors are quickly catching up!

    --

    Doh!
  6. Is it Nokia, or their service partners? by mad_ian · · Score: 3, Interesting

    I know I'm leaving Sprint, which sells and promotes tons of Nokia phones, because T-Mobile offers camera phones and (most importantly) BLUETOOTH.

    Every other major cell phone service provider has had bluetooth compatible phones for a while, but not Sprint. If people are leaving the providers that Nokia sells the majority of their phones thought, they will definatly be losing marketshare.

    ~Donald

    --
    ~Donald / Just RTFM
    1. Re:Is it Nokia, or their service partners? by Vlad_the_Inhaler · · Score: 3, Insightful

      My Nokia 7650 is 18 months old. It has a camera and Bluetooth. I am in Europe so I am not sure if there was a version which ran in the US. The model is obsolete now anyway.

      Now to what is wrong with it: It runs out of power after 5 days. For the last 36 hours or so of those 5 days, if you actually want to telephone with it then it powers down. You can power it back up again and send messages, take photos, whatever, just phoning takes too much power. This thing is supposed to be a telephone. What use is a shrinking violet phone which hides whenever someone calls it?

      When I originally got it, it was set up so one of the two main buttons went into camera mode and the other one went into some Internet function. Hey guys, this is supposed to be a telephone. Calling (or messaging someone) needed 5 or 6 separate inputs and some positioning with a trackball. It was only when I found out how to reconfigure the beast that it actually became useable. Apparently a lot of phones do not allow reconfiguring.

      Having said that, my next phone will probably be a Nokia as well, friends have Siemens phones - I will never go there - another friend has a Sony. The menus in both cases are simply too cryptic.
      Whatever it is, it won't be a 7610. The keyboard layout is simply insane.

      The advantage of a Nokia used to be that they were good phones which were really easy to use. Some of the more recent models are poorly designed toys, overloaded with too many useless functions which just added unnecessary complexity.

      --
      Mielipiteet omiani - Opinions personal, facts suspect.
  7. 35 New Phones? by atlasheavy · · Score: 4, Interesting

    This seems a bit overkill to me. I feel like this is more of a knee-jerk reaction than a solid business move for some reason. Perhaps the real question is not "how far can we boost our market share with these 35 new phones," but instead should be "what's wrong with our existing phones?"

    Realistically, you shouldn't have to add this many different products to your line to snag the coveted clamshell and camera buyers.

    I bought a Motorola MPX200 a little under a year ago because I could write software for the damned thing, but before that I had always been a Nokia owner. Clearly, this is not a standard line of reasoning for most buyers. Nevertheless, perhaps Nokia should make it a little more obvious where their SDKs live for their phones and hold student developer contests or something.

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    1. Re:35 New Phones? by KillerCow · · Score: 4, Interesting

      This seems a bit overkill to me. I feel like this is more of a knee-jerk reaction than a solid business move for some reason. Perhaps the real question is not "how far can we boost our market share with these 35 new phones," but instead should be "what's wrong with our existing phones?"

      Realistically, you shouldn't have to add this many different products to your line to snag the coveted clamshell and camera buyers.


      This is what happens when the marketing group takes over an engineering company. Rather than develop a new product to fix the real reason for the slide (which takes time and money), they go for the quick fix of a new marketing push. This works in the short term (single quarter) as the old technology is not too far behind, but as this is reapplied over and over again, the products that they are pushing fall further and further behind.

      This is what happened to Palm when the guy from Pepsi took over. Rather than sink money into R&D (which made the tech company a success in the first place) they focussed on marketing and branding (that is how you sell sugar-water, after all). Then a couple of years later, palm was all marketing and hadn't improved their products while the PocketPCs had marched forward, caught up technically, and then kept going to leave Palm in the dust. Once they realised what was going on, Palm ousted the Pepsi dude and started playing catch-up.

      Just my opinion... hopefully I remember the facts correctly.

  8. Ngage! by Mr.+Vandemar · · Score: 5, Funny

    How could they possibly be doing poorly when they invented the wonder of sidetalking?

  9. Re:Hmph by Fizzl · · Score: 4, Informative

    Then....

    This model looks kinda goofy, but anyway... S90 will have full support for mp3, AAC and so on.

  10. P910 by zeth · · Score: 3, Interesting

    Who would ever need a Nokia when SonyEricsson has the P910!
    The _perfect_ phone/PDA.

  11. Able to leverage their brand this way. by Stubtify · · Score: 3, Insightful
    Everyone seems to be complaining that 35 phone models seem to be far too many. However Nokia has to offer phones for different providers to be able to compete. They've always offered one or two CDMA phones and they continue to do so, an increase here would likely account for the high number of new phones.

    However, Nokia is a smart company. What do they care if they have 35 models? The average (not anyone reading slashdot) Cell phone user cares about two things: One, the phone looks good to them, and right now this means flip phones. And two, the phone has the features they want. That second request is going to be different for every person.

    It is this diversity that can help nokia. A soccer mom who calls a max of 10 minutes a day and a corporate executive who needs a high capacity battery are two totally different segments of the market. However the Nokia brand can keep both by releasing phones taylored for each.

    Lastly, you'd be surpirsed how many millions of people hate learning a "new" phone. I personally can't stand nokia phones, they're bulky, have features I never need, and I can't seem to get used to the menus. But I hear from everyone i know with one that "they're so easy to use." And if you know how to use one nokia, you know how to use them all. That's their best kept secret.

  12. Nokia is too expensive by kyknos.org · · Score: 3, Interesting

    Nokia is too expensive. For half the price I can buy Siemens with the same functionality.

    --

    SHE does throw dice.
  13. Nokia has been tremendously successful by prostoalex · · Score: 4, Insightful

    Well, first of all, Nokia has been very successful in the cell phone market, and generally when you have high-quality competing players, the competition kicks in, and things even out. Nokia boasted 34.7% global marklet share in 2003, and in Q1 2004 grew in European region with those new concept devices like N-Gage and what not. Suchy growth is hardly sustainable, especially when competition largely is just as good.

    Second, US is a large market for cell phones in regards to global sales. However, few of US customers ever choose their cellphones, since in the United States the phones are purchased by the operator, not customer. Which still creates some sort of competition, but it's way tougher to push newer phones and newer features, while the operator still has the year-old models available and runs those commercial "and now get a free blah-blah-blah phone with the signup for 1-year plan".

    Realistically I think slipping to 28.9% is not too big of a deal, and Nokia will kick back after maybe just one sweet deal with US operator like Cingular or Verizon, where new models get pushed.

  14. Too little too late, in the US at least... by Chuqmystr · · Score: 4, Interesting
    Unfortunately for Nokia they probably won't be able to win back many here in US anytime soon. Our wonderful carriers have such a convoluted aproval process that it can take over a year to get a new handset to market. The CDMA guys are the worst too. Still waiting for some sort of functional bluetooth. (Nokia has been trying to get VZW to show more interest in their CDMA chipset for a very long time now. Qualcomm has it pretty sewn up. Oh, not hold my breath for the moto V710 either) Hell, even IR ports are rare. Guess the CDMA guys here hold stock in some data cable manufacturers? Hmmm...

    N'way, my point being that by the time some of those new handsets make it to market here many consumers may just be starting to forget about Nokia. Credit where it's due though, T-mobile got the 6600 out fairly fast. But then they're not an American (or CDMA) carier either. Just my $0.02

  15. Hey Nokia! by Psychic+Burrito · · Score: 3, Insightful

    Hello Nokia! If you're reading this, we have already figured out your trick: You never sell a phone will all the features. I guess you do this to artificially "keep the hunger up" for your phones, because people will then have to buy a phone which has one more feature the next year. And then again.

    Well we have found out your trick already 3 years ago. Other companies sell phones with the whole nine yards, and they're light too. So we now buy these phones. Bad Nokia, bad!

    If you want my business back, give me a phone that has every feature in it. Every acronym, even if I don't know what it means. I want to have it. It's some sort of spiritiual thing, you know.

  16. It's a shame too... by mo · · Score: 4, Interesting

    The real bummer about this is that Nokia has far and away the most open platform for development of any phone manufacturer. They provide a huge array of sdk's and example code for both symbian and j2me developers.

    Contrast this with an LG phone running brew on verizon and you have to pay all kinds of money and jump through all kinds of hoops just to write an app that verizon decides it doesn't want to distribute anyway.

    My (very small) company is developing a cellphone app, and the costly barrier for starting Brew/Verizon devleopment is preventing us from using that platform. You pay through the nose for the development suite, then it's 300 bucks to register as a qcomm developer, then you have to jump through all of these verisign hoops to get a DRM key to sign your apps with, then you have to mail in your phone to be flashed into development mode, then you have to deal with verizon for distribution.

    Meanwhile we're downloading compilers, tools, and example apps off the net for the nokia symbian platform that just work on an unmodded handset we bought at the store.

  17. I Just Want To Call People! by Farrside · · Score: 3, Interesting

    I think they could increase their sales a bit if they'd offer a phone that JUST MAKES CALLS. I don't want to play games. I don't want voice features. I don't mind customized rings, but I don't need them either. I especially don't want the bloody animations whenever I do anything with the phone- I just want it to do whatever it was I asked it, and then stop showing off so I can press more keys without waiting for the phone!!!
    I can't believe I'm alone- there must be a lot more folks out there who just want a phone!

  18. Why Nokia ain't selling more phones by bmo · · Score: 5, Interesting

    Because the old models are more durable than anything by Motorola, Samsung, or the rest.

    I've dropped mine on concrete, had it go skidding 'cross the shop floor, etc etc etc.

    It still works. The only thing it could use is a new plastic shell.

    I dropped a Motorola *once*. Within a week, the screen died.

    My Nokia is an old 3390. It doesn't fold in half and doesn't have an external antenna. It doesn't have a camera. It doesn't have a fancy qwerty thumb keyboard. The display is rugged. Since the case is an external component to the phone itself, cracking the case isn't always going to crack the phone itself.

    IOW, it's well engineered, even for a cheap phone. This probably (definitely) means that people aren't replacing them as often as say...Motorola phones.

    It's like whether you buy a Federal Products dial indicator (I've got 3, plus 2 CDI indicators graduated in .0001 inches), or a cheap Chinese knockoff. I've got a Federal indicator that's pre *WWII* by the looks of it. It's just as smooth and accurate as anything new.

    You can have my 3390 when you pry it from my cold dead fingers.

    --
    BMO

  19. Why flip phones ? by Frog+in+the+well · · Score: 3, Interesting
    Of the reasons for the popularity of the flip phones over the traditional 'block' phones, the first one is the better audio clarity. The reason being the absence of dense 'sound wave' absorbing electronic components and other structures near the earpiece speaker. So you get better acoustic properties, obviating the need to press the earpiece of the phone to your ear to hear better.

    The second reason is the clamshell models have a better 'ear to mouth' length advantage, which is difficult to obtain with the 'block' design unless you want to make the phone 'thin and long' like one of those Sanyo models, which again are more prone to breakage.

    The third reason is the 'ear frying' problem with some of the non-clamshell models (I have noticed this problem with many 'block' phones, atleast when they are new). Because of the proximity of the heat producing components to the earpiece and due to conduction, the region around the earpiece becomes quite warm to cause significant discomfort. But this problem is non-existant with the clamshell, because the bulk of the heat producing electronics is away from the earpiece with little or no conduction.

    The fourth reason being the less scratch prone screen and buttons. Also you dont have the problem of accidental dialing from the speed dial buttons when carrying around, or the discharge of the battery from the frequent turn on due to the accidental key presses.

    The case of Nokia is like a 'hare and tortoise' story, they were sleeping when the others were running. If you have observed the company, there was not much activity atleast for the past 18 months, not many new phones or variety (like clamshell or camera phones). Not much of advertising, so they were effectively getting erased from the collective memory of the consumers. They were in the hibernate mode, now you see the results.

  20. When it take just one model .. by apankrat · · Score: 3, Insightful

    .. that can make phone calls and NOT take pictures (Ah!), NOT allow changing a faceplate in under 5 seconds (Oh!) and NOT do something else as usefull as baking a cake or running an embedded Java (why not Perl, BTW ? ;)).

    Seriously, I've been looking for a new phone with no extra features - just wanted GSM phone, which is light and small to carry in a pocket. It also must look good, but that's subjective. Something like this (Nokia 8910), but triband or at least Canada-compatible.

    And guess what - I'm still looking :-/

    --
    3.243F6A8885A308D313
  21. Ya know what would get me buying a phone? by jez9999 · · Score: 3, Interesting

    The ability to clacklist certain numbers would get me buying a phone. It's #1 on my desired features list for my next phone, which is probably why I haven't yet bought an other phone - NO phones seem to offer the ability to blacklist (or auto decline) the most important number of all - Number Withheld. If Nokia actually implemented useful functionality such as this in just ONE of their phones instead of concentrating in making them look weird/stupid and play ever larger numbers of Java games, they'd have earned a sale from me, that's for sure.

  22. one thing I'm waiting for by fyonn · · Score: 4, Interesting

    is a mobile phone that takes 2 sim cards and can use both at the same time.

    I have a mobile phone of my own, up to now I've not taken a work phone as I don't want to take 2 phones with me everywhere. surely it can't be too difficult to have 2 sims in a phone, both acive so that you can get calls on either number (each having it's own contract and possibly, different operator) and the phone call tell you who it's from and what number it's going to, so you can see at a glance what the situation is. ideally you could maintain 2 seperate address books too, ie a work and a home one (possibly a field in a single address book maybe)

    yes, you can get dualo sim adapters for phones, but thats crap as it's an "either or" situation. you can only have 1 active at once which isn't good enough. I have my home phone on my desk at work and no-one minds if I get personal calls on it.

    dave

  23. keypads by Refrag · · Score: 3, Insightful

    They might sell more phones if they didn't put stupid non-standard keypads on all of theirs. I know I used to love Nokia, but I switched to Sony Ericcsons for the Bluetooth, Java, and a normal keypad. I never use the stupid camera on the phone.

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  24. Bluetooth by metamatic · · Score: 4, Insightful

    I loved my Nokia phone. But I wanted it to sync with my computer, and Nokia didn't have any Bluetooth phones for sale in the US. So, I got a Sony Ericsson.

    The Sony Ericsson is slow and poor quality compared to my Nokia, but Nokia still only have one Bluetooth phone on the market, and have a ton of stupid designs--circular keyboards, keyboards with two buttons on each key, slanted keypads, and so on. Idiots.

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