Forbes: Low-end Windows Smartphone Sales Finally Igniting (Nokia Lumia 5xx)

Tero Kuittinen from Forbes writes that the Nokia Lumia 5xx range are a hit across Asia and US. T-Mobile and AT&T apparently find it a substantial hit. Popular retailers in India, Flipkart and Snapdeal are said to indicate good traction.

http://www.forbes.com/sites/terokuittinen/2013/08/13/low-end-windows-smartphone-sales-finally-igniting/

But Tero asks at what cost? Are sales of low end Lumia undermining the higher end? With Nokia Lumia’s consistent user experience across the board why opt for the more expensive devices? Well those are entry level phones. Quite rightfully, that’s why they’ve been praised by reviewers because Nokia isn’t compromising on user experience as you would with cheaper, stuttering, laggy entry level droids (I mean you can even get some  reported lag on Quadcore let alone lesser spec’d droids) Whilst ASP is declining, at least it isn’t at the cost of consumers who are attracted with cheap phones but feel trapped on a horrendous user experience (aka cheap Symbian touches). It might improve relationships with operators, make the platform more attractive for developers and boost confidence in Nokia’s long term viability.

“but it’s worth noting that volume growth with plunging ASP level is still preferable to the deep volume disappointments HTC and BlackBerry have delivered.”

It may be the right fight for Nokia at the moment to target entry level and middle ground whilst it waits for MS to open the gates to much higher end specs and features. Nokia can build marketshare and has done, by snatching 3rd place from BlackBerry who were recently reported to be considering options (one of which is to sell the company). Tero says that Nokia might be preemptively attacking the deep value territory where Apple, who has cheaper colourful versions of the new iPhone coming soon, cannot go (he expects cheap iPhones to be still in the $400 range).

Will it pay off? Tero suggests that we won’t know until 2014/2015.  The long term game being to extinguish the likes of BB/HTC (and it’s somewhat working for one at least). Volume shipments now, longer term profitability later? The fear for Nokia fans is how the Borg-like Samsung will shift and adapt. Like the strong Noia before, Samsung can break into any market by throwing out new models and seeing what sticks. Any indications that there’s something popular, you will see a Sammy copy. Thankfully we’ve been given somewhat of a breather in WP as Samsung doesn’t see it as a threat. Even without much effort it has managed to displace HTC for 2nd place (though HTC have been more preoccupied trying to stop Samsung snatching up all the droid space).

Thankfully, Nokia’s Lumia WP devices have differentiation with Nokia software, Nokia design and as you ascend, Nokia hardware innovations like the PureView 41mp camera that has recently been trouncing all other mobile phones including Samsung’s attempt at going for PureView’s neck with the ugly S4 Zoom.

Source: forbes

Cheers jiipee for the tip!

Category: Lumia, Nokia