Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s chief executive, Stephen Elop, reiterated the company’s desire to continue using Windows phone as its preferred smartphone platform, quashing speculations that the Finnish giant was rethinking its strategy. Nokia adopted the use of Windows phone at the expense of its own Symbian O.S two years ago, a decision that has seen the company lose a huge chunk of the market share to Android and iOS devices. Google Inc (NASDAQ:GOOG)’s Android O.S is widely used across many devices and by different companies. Android Apps are available for free in Google Play, which makes the O.S more attractive compared to rivals.
Following the continuous drop in market share, critics held different opinions on Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)’s next step towards a turnaround. There is no doubt that Google’s Android O.S has played a huge part in Nokia’s fall, but again, there are several other factors contributing to the fall. The O.S is one, but also gross margins and brand popularity have had their part. Nokia is no longer the world’s leading brand in the mobile phones market. Korea’s Samsung has probably edged it out in that perspective, while the iPhone, despite the challenge of Samsung, claims the top spot in the smartphone market.
Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB), who today launched BlackBerry Z10 in India for $800, could easily rank above Nokia in the smartphones Industry, while Motorola Mobility Holdings Inc (NYSE:MMI), HTC Corp (TPE:2498), and Huawei are not to be ruled out. In fact, they have a huge advantage over Nokia smartphones because they run on Android, and are arguably priced cheaper.
It would have been fitting to say that Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) would probably, at least, consider bringing in another O.S to its smartphone product line – which continues to underperform at the industry level. When Nokia launched its Lumia phone 900 and 920 last year, media reports suggested an initial upswing in demand for the devices compared to their predecessors However, this momentum cooled down with time, reducing the device’s challenge to peers to negligible levels.
Windows phone O.S is yet to forge a formidable traction in the market currently dominated by its two rival players. One would call it a “Two Horse” race. Something similar to what Google Inc (NASDAQ:GOOG) executive, Eric Schmidt, famously referred to as the defining battle in the technology industry. The two have been identified as the leading ecosystems and a third place remains ‘up for grabs’ as Windows Phone 8 and BlackBerry 10 battle on. Indeed, Nokia’s smartphone success depends on Windows phone success, and agonizingly, the battle is no where to be compared to what Android and iOS have tabled.