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Is Lumia Nokia’s Saving Grace?

NOKIA HAD REPORTED BETTER-THAN-EXPECTED SALES FIGURES FOR THE LAST QUARTER OF 2012, MOSTLY THANKS TO ITS LUMIA SMARTPHONES. SO IS THIS PROOF THAT LUMIA IS NOKIA’S SAVIOUR IN THIS HIGHLY COMPETITIVE SMARTPHONE MARKET?

Nokia have recently been losing market share to the likes of Samsung and Apple, however its change of strategy in February 2011 to drop its Symbian operating system and adopt Microsoft Windows Phone may finally be paying off.

Nokia reported sales of 3.9 billion euros in devices and services for the fourth-quarter of 2012. More than half of its smartphone sales were from their Windows-based Lumia handsets and shares have increased by 10.8% as a result (Nokia Corporation).

However, Nokia’s turnaround from reporting losses in the first half of the year to reporting net profit in the last quarter of the year can be attributed to a combination of factors, including the launch of the Asha smartphone which is experiencing high demand, costs cuts, success in other services including its Siemens Network and of course, strong Lumia sales. Nokia’s Windows Phone-based devices have finally outsold Nokia’s other phone devices running Symbian and Meego. Microsoft’s impressive user-base will no doubt also work in favour of Nokia.

“The decision to align with Microsoft has allowed Nokia to benefit from integration of Microsoft services such as Outlook, Office 365, SkyDrive, Skype and Lync to name a few. These services have helped Nokia to provide a sound solution in a business environment, particularly for corporate users who participate in BYOD (bring-your-own-device) initiatives in the workplace,” commented James Watkins, Software Architect at Solentive Software.

Some major organisations have also adopted Nokia’s Lumia range of smartphones for the ease of integration between their devices, particularly for those who are predominantly running Microsoft products. Furthermore, the Windows Phone 8 operating system allows organisations to deploy applications, updates and communications to employee-issued Lumia phones (WMPoweruser).

“For the average consumer, Windows Phone provides services via Xbox Live, games, music and video. Social media integration is also built into the device to offer a complete entertainment solution,” continued Watkins.

“If Nokia is able to fully capitalise on Windows Phone, Lumia will be Nokia’s saviour in the smartphone market, but it will take some time to achieve major success,” offered Watkins.

Moreover, if Nokia continues to expand its range by offering mid-tier smartphones like its Asha phones to developing markets such as China and India, they will be able to compete more aggressively than at the higher end of the market against the likes of Apple and Samsung. According to some analysts, mid-tier consumers tend to show loyalty to the same brand or operating system when upgrading their phones (IBN Live).

References

Surur, Sports Direct adopts Nokia Lumia 820 as corporate smartphone, February 2013 – (WMPoweruser)

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