Yesterday could have been a big day following concurrent announcements on new smartphones by two major companies, Nokia Corporation (NYSE:NOK) and Motorola. However, it would seem as though these two company’s had no game plan in mind coming into the launch, or either, that was their game plan.
Many people expected to hear some very important details regarding the company’s product, but this came in vain, as Nokia Corporation (NYSE:NOK) gave no hint on when they would roll out the Nokia Lumia smart phones, nor the expected prices. According to Stifel Nicolaus & Co. Inc., Nokia might have lost a brilliant opportunity to throw one against one of their biggest RIVALS, Apple Inc. (NASDAQ:AAPL), as it was set to make its announcement only seven days later.
Nokia’s launch was more of a joint launch with Microsoft’s Window’s 8 O.S, as its two Lumia phone models, of 4.5″ and 4.3″ respectively, will run on Microsoft’s new operating system. Additionally, Nokia Corporation (NYSE:NOK) even failed to announce a carrier, making things fall far short of expectations.
On the other hand, Motorola made an announcement on three new Droid Razr models, set to run on Verizon (NASDAQ:VZ). Stifel Nicolaus analysts admit surprise at the third unit, as they were only expecting two from the announcement. The only pricing and availability announcement made was for Motorola’s Droid Razr M, which is set to roll out on September 13. According to the report, pre-orders have already started.
This is perhaps the only adverse impact on Apple Inc. (NASDAQ:AAPL), as it prepares to make the eagerly awaited announcement on September 12, that will definitely set the date for the roll-out and pricing for its iPhone 5, and iPad mini.
What If?
As discussed earlier, Nokia and Motorola failed to release critical information regarding their products, especially, pricing and roll-out dates.
The first scenario, that is, if the companies made announcements on pricing and roll-out dates, would they have been accompanied by pre-orders, as illustrated by Motorola’s Droid Razr M?
This could have resulted in handsome revenues from impatient customers, and especially, those who have been anxiously waiting to acquire the product. The companies would have taken advantage of the period between now and Apple’s big announcement, to make some quick sales.
This would protect them for the wrath of Apple’s exquisite devices, that are set to hit the market soon after its announcement. The moment, Apple announces the pricing and availability of its iPhone 5 and iPad mini, it could literally render other high-end mobile devices a no contest challenger, making it difficult to record a sale.
The Second Scenario, that is, the current status quo; what could be the reason behind their discretionary announcement?
The only logical explanation could be pricing, and perhaps also, the reason why the roll-out dates went missing. So then, what about pricing? Well, I believe these companies could be holding on to evaluate Apple Inc. (NASDAQ:AAPL)’s announcement, with a keen interest on pricing and features of the new iPhone, as well as iPad mini.
The two companies could be holding on to the prices of their products, so as to follow up with a revised price following Apple Inc. (NASDAQ:AAPL)’s announcement in order to try and claim a share of the anxiously awaiting market. If this happens to be the case, then they could be trading safely, as they could set up prices for their products, which definitely couldn’t match Apple devices’ quality, only to find that Apple’s devices are trading a little lower. This could definitely spell doom for them, forcing an immediate, embarrassing downward revision.
Nonetheless, the failure to announce pricing, and availability details still, remains a great disappointment to customers, and will definitely be overshadowed by Apple’s big announcement, as the company is expected to give a complete schedule.
