It is now official: Nokia has sold its luxury-segment subdivision Vertu to EQT and released official information about the company’s plans for the future. These are seemingly discouraging and disappointing.
There can hardly be found a person in the whole world (not even just engaged in IT), who has never heard of Nokia. Moreover, at a certain point in the past the majority of us used to have Nokia phones, as those were in some way pioneers in the global mobile industry, along with Ericsson, for example. Of course, those were not smartphones, yet their quality and reliability were, undoubtedly, impressive.
Nonetheless, with the time on, the competition on the mobile market has grown so intense, that Finnish Nokia hasn’t managed to resist it. At least, that’s what the situation looks like from the objective perspective.
In particular, the company has already fired a great number of its employees over the past several years and is now selling its luxury brand Vertu, not to mention its claimed “renovation” strategy, which presupposes the change in forecasts for the 3rd quarter (apparently for worse) and the massive reduction of costs, which will, certainly, presuppose another stage of laying off a lot of people.
It’s not that hard to define logical reasons why Nokia is falling deeper and deeper down, whereas its rival, like Samsung and Apple are reaching the highest levels of popularity. The most obvious one is, perhaps, the Symbian OS that can’t compete against either Android OS or iOS, which turn out more advantageous in usage. Further on, there simply goes the chain: worse OS –less/ worse apps – less popularity.
Here, even though, the large companies, like Facebook, Twitter or 4shared have developed their apps for Symbian, due to the curtailed popularity of Symbian phones, they still earn more from Android and iOS users and are consequently ready to invest much more into these 2 operational systems. This is how we’re getting back to the described chain: worse OS –less/ worse apps – less popularity.
For what it takes, what has always distinguished Nokia from other competitors is the highest quality of its phones. In this respect, as far as Nokia smartphone variety is concerned, the quality hasn’t deteriorated at least for a little bit. Yet, whereas the current diversity of choice has already forced other companies to create cheaper smartphones of a decent quality, Nokia can’t boast about this much. The logic ”what is cheaper is worse” doesn’t work like it used to anymore, as there has been added one more statement to the phrase, saying that good quality should be sold for quite an affordable price.
All things considered, there’s something nostalgically sad in today’s position of old-known grandees, like Nokia, or Blackberry, for example. There’s too much in our memories, associated with them. Still, the changes in IT industry have always been and will always be very fast and pretty much irreversible, so the ones, who change their vision slower, tend to lose most of the time.