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It Costs $450 In Marketing To Make Someone Buy a $49 Nokia Lumia
benfrog writes "According to market-share estimations compared to marketing dollars, it costs nearly ten times as much to sell the Windows Phone-based Nokia Lumia as it does to buy one. Other analysts agree with the low sales numbers."
Nokia Lumia does not cost $49 to customers. It costs (and makes profit of) $49 + whatever mobile operators make during the two year contract. God americans are stupid if they still go for this marketing trick. Even Slashdot runs bullshit story like this!!
On top of that Nokia is trying to capture US market, so they can spend more on it while they generate revenue from rest of the world.
How about they give me $400 directly and then I'll pay the $49 for the Lumia.
They've saved $50!
The iPhone worked because people could use it as an iPod, and it had the whole exclusive iTunes infrastructure behind it.
Blackberry's killed it with their keyboard.
Android didn't get popular until the Droid came out with their keyboard, giving it that differentiation from the iPhone, and that it was available outside of Cingular/AT&T.
Windows phone doesn't really offer any exclusive hook that'll sell itself. It has a nice UI, but the other systems are pretty good and ultimately very usable.
I suspect they'll have to tie in deeper with the upcoming Windows 8 infrastructure to get Windows Phone to sell. Or maybe XBox games. But right now it doesn't have that absolutely exclusive must-have killer app or selling point.
It's really shame, because Windows phone is a perfectly fine system that just needs a critical mass to get going.
Uh, Nokia haven't abandoned their other OSs. They're still selling Symbian, dumb and Linux phones.
Uh, Nokia haven't abandoned their other OSs. They're still selling Symbian, dumb and Linux phones.
Never end a completely uninformed argument with the facts. It's just not nice.
Nokia was a giant in the cell industry but has been slipping lately.
Slipping? That's an understatement. Go check out the 1 year graph. You can't even see today's price because it's lost under the markers at the bottom.
Life's a bitch but somebody's gotta do it.
They have been officially in process of abandoning symbian since 2011 or so, and it will officially end in total abandonment in 2016. In reality, symbian has been largely abandoned marketing wise back in 2011 along with the catastrophic "platform burning" memo which made sales go from "increasing by about 5% yearly" to "total collapse" overnight.
Linux smartphone is 100% abandoned. Meego has been abandoned before N9 was even properly out, with team developing it long disbanded. N9 is no longer manufactured and they're just selling the rest of the stock. There has been virtually no marketing push behind N9 either. Fun trivia: it still outsold all lumia phones to date.
Dumb phones are still going, but how long they will last is anyone's guess. Elop has finally gotten around to axing meltemi dev team (linux based dumbphone OS), which means that nokia essentially has no OS for dumbphones past 2016, when it's supposed to fully abandon symbian. WP is unsuitable for dumbphones due to both hardware requirements and software pricing, and Elop's clear main goal is to make nokia into a 100% WP OEM and nothing more. That makes dumbphone division future into a very big question mark.
Heineken and a few other breweries are the only ones that will give a loan to the owner of the bar, since bars and clubs are a high risk investment and most banks won't get involved. Because the breweries aren't banks, they don't have to hold themselves to a lot of regulations that forbid banks from controlling their loaners too much. This means that the breweries often end up owning the building after a previous business goes bankrupt and now most bars and clubs are effectively owned by the breweries. Once they figured out this method, they started to actively buy real estate that houses bars, restaurants and clubs. The real kicker is that those bars pay more for their beers than you and I pay for the same beers in the super market. The innkeepers have to pay rent, make a living and pay their staff, so variation is hard to find and prices are inflated due to the lack of competition this sort of practice brings. Add to that the high alcohol tax and it's no wonder that bars and clubs are such a high risk investment....
I was promised a flying car. Where is my flying car?
Dumb phones are still going, but how long they will last is anyone's guess.
Well, basically, I think they will last for a very long time.
At least until a smart phone becomes cheaper than a dumb phone - which imho is possible considering a smart phone doesn't have all those mechanical buttons a dumb phone has. And a dozen or so buttons may very well be more expensive to produce than a single touch screen display.
And even then there will likely always remain a market for simple phones that do one thing, and one thing very well: making phone calls.
how long they will last is anyone's guess
As long as there are developing countries one would imagine. The Nokia 1100 is the world's best selling phone. 250 million 1100's have been sold since its launch in late 2003. Nokia has recently come up with a replacement the Nokia 110 (that I'm really hoping to get a hold of).
I have a GSM smart phone. It does tricks like check my e-mail and weather. But the other 90% of the time I'm just carrying the 1100. The battery on standby lasts a week give or take. If It gets dropped I don't worry about the screen cracking. And if I'm ever mugged I can always bludgeon the mugger with it.
I'd disagree - The worst CEO of all time is Jerry Yang. Elop took a gamble (and appears to be losing miserably). Yang demolished his stock price simply because he "didn't want Darth Vader buying his company."
If Yang would have sold Yahoo to Microsoft, Microsoft would be in even worse condition AND Yahoo's shareholders would have been thrilled.
Let me guess, when Ballmer did the monkey dance, you were the one person in the world who was sexually aroused?
I have seen some delusional posts in my time but this one takes the biscuit. You don't deny any of the shortcomings, just come up with endless excuses or even downright admitting it is a huge failure and that is what you think of as a rebuttal.
With fans like you, what need has Windows 7 of enemies. You are supposed to damn things with faint praise, not by dragging them through the mud and stepping on their wind pipe.
Thanks for this amazing post, if I had even the slightest incline to perhaps one day try a MS phone, you have thoroughly killed it off. Oh I get, you are secretly an Apple fanboy and seek to discredit MS in disguise? Good job!
MMO Quests are like orgasms:
You may solo them, I prefer them in a group.