Friday, October 5, 2012

Microsoft's Killer Strategy

Nokia isn't stressing on Aggressive Marketing as of now. 
Sample Models of Lumia 920 running Windows Phone 8

There are rumors that Microsoft is going to release Surface Phone 8. This can only be found out on Oct. 29th during the official Windows 8 Launch.

We all know that Nokia is giving its best to revive itself in the smartphone world. The Launch of Lumia 920 and Lumia 820 is the last hope for Nokia.

I met up with a Microsoft Engineer in India, he refused to reveal any plans about the Surface Phone 8. He did though explain the strategies Microsoft would adopt if the Phone would Launch.

Getting back to Nokia:
  • Nokia's last success story was the N95 which ran a Symbian OS.
  • After that it released many smartphones but didn't dominate on 2 things: Apps and Touch.
  • As Apple and Google were building capacitive touch screen models on a massive scale, Nokia concentrated on its Hardware strength. 
  • Nokia had one of the 1st apps but it couldn't capitalize on the Developer interest in Symbian.
  • When Nokia realised that they were too late in the touch screen market, their stocks had already crumbled to a mere 4% of the original stock value.
  • The CEO of Nokia wrote a memo to all employees, "Nokia, our platform is burning."
  • He took a bold step, which was needed, he adopted Windows Phone into Nokia and Symbian was history
  • Nokia released a range of smartphones in the "Lumia" series that were a hit but not a sensational one.
  • Nokia's stocks rose by 11% but due to the Eurozone Crisis Nokia is struggling.
Microsoft's So-Called "Surface Phone 8", if launched will kill Nokia's market

Now here Microsoft comes into the picture. Nokia is giving its last shot by launching 2 Windows Phone 8 devices that till now look amazing on paper. If Microsoft launches its own Phone, people will prefer it to Nokia's models due to the Hardware/Software integration. Now Nokia is dead, it has to file bankruptcy. Here Microsoft can save Nokia and benefit from it, they buy out Nokia and a bargain-able cost. This way they get the Nokia R&D and can also break Google's and Apple's market share in the smartphone gamble.

Currently
  • Nokia has only around 400 full time employees.
  • Nokia still has an edge over RIM because RIM has only about 2 % of smartphone share while Nokia still has a respectable 11 %. [Google's devices dominate with 63%, Apple scores a second with 25%]
  • Nokia is planning to shut down it HQ in Finland and shift its business to The USA citing ease of tax burden.
  • Nokia has been fighting a long case with Android Devs for building Android Apps on UNIX 32 platforms (patented by Nokia's Symbian App environment).
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