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« Sherlock Holmes & Hound of the Nokiaville? Why Did Nokia Market Share Crash-Dive? I May Have An Answer.. | Main | Paging Stats Police: Canalys jumped gun rather badly, Android is NOT yet ahead of Symbian (but will be soon) »

January 31, 2011


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I can think of one another reason why market segmentation could be very important for Nokia.

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So how many is the 'unique' user count? That is 3.7 billion people. It is already over half of the total population of the planet - and considering most of the planet lives in very poor conditions, mobile phones are by a very wide margin the most widely spread technology on the planet. Yes, 54% of all people alive on the planet have a mobile phone.

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However, that is my stubbornness, I can still see that it is a very nice smartphone and I happily bought it for my daughter.

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Dear Tomi,
Your marketing strategy is sound, and you have some good points about segmentation, but otherwise you totally lost contact with reality. The engineering reality (which you despise so much) is that Nokia, which is a hardware company, did not gain the ability to implement the next generation of smartphones, which have a focus on software. They tried, and they failed the implementation again and again.

Hardware-wise, they also lost the plot and missed the emergence of vertically integrated companies, such as Samsung and Apple, who develop and own the entire hardware stack, from flash to microprocessors and screens. Nokia's highest-end phones have outdated hardware specs, slow CPUs and low-resolution screens, simply due the fact that they cannot afford to put the same quality components that Samsung puts (which it manufactures in-house), and still stay profitable. As a result, Nokia's prices are high-end, but their specs low to middle range. Customers are irational, but not stupid. They can pay $1000 for the best phone, for social reasons, but wont pay the same for the poorly done iPhone me-too as for the original. At half price tho, $200-$300 I would be happy to buy their slower and uglier phones (MeeGo and WP7 included).

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