Monday, 23 July 2012 12:19

Nokia Considering Exclusive Deals With Carriers, Nothing Good Can Come Of That

Written by

Reading time is around minutes.
Nokia-2110-2

Nokia is laboring under some false expectations with their Lumia phones and the upcoming release of Windows Phone 8. It seems that despite the lack of market share and a dubious demand for Windows Phone in general they feel that building exclusive deals with carriers is the way to go. We find this very odd considering that the numbers they have now are only due to the proliferation of Windows Phone 7 based Lumias in the market. If they were restricted to single carriers in every market they would not have the 10.9 million units shipped that they have now.

Still they might be trying to use the tactic that Apple did when the launched the iPhone. Apple felt (and rightly so) that by partnering up with a major carrier they would be able to create an exclusive feel for the iPhone that would drive sales. The problem with the Lumia is that they have not built up the same hype that Apple had prior to launching the iPhone or even the same hype that other carriers have for their phones. There was a time when Nokia was the name to have in Cellphones. I can vividly remember waiting and spending a ton extra for my Nokia when I signed up with AT&T many years ago back when they were still competing with Bell South.

Nokia Communicator 9000 used in The Saint
nokia communicator 9000

Nokia was also a hot phone in the movies as they appeared in a couple of James Bond films and the Movie The Saint. However the days when Nokia was the cool phone on the market are long gone. They were supplanted by lower cost Windows Mobile and Palm phones that popped up in the mid to late-2000s. With their reliance on Windows phone Nokia might not be able to generate the type of excitement they need to make an exclusive deal work for them. It might end up hurting their sales numbers and in return their profits. They are already bleeding money and simply cannot afford to lose more. What Nokia needs is a compelling phone product that can generate consumer excitement in the way that iOS and Android does. Unfortunately we just do not see Windows Phone 8 being able to give that to Nokia.

To add insult to injury Nokia not only has to compete with Android and iOS, but also with other Windows Phone makers like Samsung, HTC and LG. These companies have better consumer confidence than Nokia does as well as money to spend (with perhaps the exception of HTC). They can afford to work out exclusive deals for their phones and yet they still try to cover the market as much as they can so they can gain the benefit of the extra sales from more carriers. We just cannot see how any type of exclusive deal with a carrier will help Nokia, Microsoft or Windows Phone…

Discuss this in our Forum

Read 2461 times Last modified on Monday, 23 July 2012 12:46

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.