Samsung grabbed the crown of number-one phone maker in the world, but Nokia's Windows Phones may help the company get back in the game.
The South Korean electronics giant shipped more than 90 million handsets from January through March, dethroning Nokia, which had topped cell phone shipments dating back to 1998.
Samsung rose to the top in part due to Nokia's absences in the market, which helped the company gain over the past year. The Finnish phone company struggled to rebrand itself as a smartphone maker with its first Windows Phone handset, closing the window on opportunity in the transition.
In the meantime, Samsung's Galaxy smartphones raised the company to a new level in the mobile market, but Nokia has big plans for the rest of the year that may help it reclaim its title.
Nokia now has a presence at T-Mobile and AT&T in the U.S. with its Lumia phones and is planning to bring a device to Verizon by the end of the year. As Nokia becomes more established in the smartphone arena, it will become a much more formidable opponent for Samsung.
Nokia works to build its smartphone cache and broaden distribution for its handsets, but it faces tough competition that may stunt its growth significantly. Apple remains the world's top smartphone shipper, and it will be difficult for Nokia's Windows devices to gain a foothold against an established handset like the iPhone.
In addition, Samsung achieved its strong first quarter numbers without the help of the Galaxy S3, which many experts believe will be the company's best-selling device. Even if Nokia does gain momentum, competing with behemoths like the Galaxy S3 and the iPhone may hurt its chance to bounce back.
Samsung's top rank is not etched in stone, as Nokia can attest. And, if Nokia's Windows Phones don't find a sweet spot with consumers, it will have a hard time keeping up, much less climbing back to the top spot.
Nokia lost $1.76 billion in the first quarter, as the company attempts refocus its business strategy on its partnership with Microsoft and Windows Phone.
Nokia patented a body tattoo with magnetic ink connected to its smartphones, as science and technology merge in innovative and strange new ways.
Ferromagnetic ink in the tattoo, applied to the body via stamp, tape, or ink, reacts to a smartphone's magnetic field, meaning calls or voice mails received on a smartphone can then trigger a vibration in the tattoo's magnetic ink.
While most users probably won't rush out to get a new Nokia tattoo, other haptic innovations that use magnetic vibrations are changing the technology landscape, building on the capabilities of mobile devices.
Haptic tablets are helping blind students navigate computers via tactile vibrations, and are also being implemented into a range of upcoming mobile games to improve game play and response.
OmniTouch, a wearable touch screen sensor system created by Microsoft, superimposes a touch screen on any surface, such as a wall, table, or even the palm of a hand. The depth-sensing camera tracks finger movements so users can paint, type, or take notes by tapping and dragging on the object's surface.
In Nokia's case, magnetic fields could create different kinds of alerts for different notifications. For example, a text message might trigger staccato vibrations and an incoming call a steady rhythm, allowing tattoo-wearers to distinguish the type of message by feel.
Nokia didn't offer more insight into the hybrid technology, and many questions remain, including whether users can disable vibrations when they're trying to sleep.
As mobile technology continues to expand, creators increasingly think outside the box with eccentric new innovations. Many of these new inventions will likely prove helpful, but if Nokia's tattoo is any indication, we soon might be literally attached to our cell phones.
Nokia patented a body tattoo with magnetic ink connected to its smartphones, as science and technology merge in innovative and strange new ways.
Ferromagnetic ink in the tattoo, applied to the body via stamp, tape, or ink, reacts to a smartphone's magnetic field, meaning calls or voice mails received on a smartphone can then trigger a vibration in the tattoo's magnetic ink.
While most users probably won't rush out to get a new Nokia tattoo, other haptic innovations that use magnetic vibrations are changing the technology landscape, building on the capabilities of mobile devices.
Haptic tablets are helping blind students navigate computers via tactile vibrations, and are also being implemented into a range of upcoming mobile games to improve game play and response.
OmniTouch, a wearable touch screen sensor system created by Microsoft, superimposes a touch screen on any surface, such as a wall, table, or even the palm of a hand. The depth-sensing camera tracks finger movements so users can paint, type, or take notes by tapping and dragging on the object's surface.
In Nokia's case, magnetic fields could create different kinds of alerts for different notifications. For example, a text message might trigger staccato vibrations and an incoming call a steady rhythm, allowing tattoo-wearers to distinguish the type of message by feel.
Nokia didn't offer more insight into the hybrid technology, and many questions remain, including whether users can disable vibrations when they're trying to sleep.
As mobile technology continues to expand, creators increasingly think outside the box with eccentric new innovations. Many of these new inventions will likely prove helpful, but if Nokia's tattoo is any indication, we soon might be literally attached to our cell phones.
IPads and IPhones will still be available in the Netherlands, after a judge rejected yet another Samsung bid to ban the devices, and Verizon now owns another small regional carrier in its quest to tie up more spectrum.
Meanwhile, politics is in tech news, with Sir Jonathan Ive, Apple's creative designer, invited to a state dinner tonight at the White House and former President Bill Clinton tagged as the keynote speaker for this year's CTIA converence in New Orleans. Nokia also touched on plans to build a tablet it hopes can compete with the iPad.
Court Rejects IPhone, IPad Ban
A Dutch court has rejected Samsung's bid to ban iPhone and iPad sales in the Netherlands, but Samsung said the court ruled it can still seek a ruling over Apple's use of Intel chips.
The Hague court Wednesday ruled Samsung can't assert its 3G patent claims against Apple's products that use Qualcomm's baseband chips, as Samsung has a licensing deal with the chipmaker.
The Dutch ruling comes as Apple returned to Samsung for the initial supply of touch-screen panels to make its latest iPad, which hits stores Friday and deepens the companies' business ties.
Verizon Snaps Up Pennsylvania Carrier
Verizon is buying Cellular One of Northern Pennsylvania, which won't add a lot of customers but will give it some more sought-after spectrum.
Financial terms haven't been disclosed, but the deal includes a spectrum license covering 114,000 Pennsylvania residents. Subscribers affected by the deal won't see changes for a while, but eventually, they'll become Verizon customers as well, which could change calling plans and device availability.
Apple's Ive Dining with Obama
Sir Jonathan Ive, Apple's senior VP of industrial design, will attend a White House state dinner tonight in honor of British Prime Minister David Cameron's visit to the U.S.
He'll join other British dignitaries, such as actor Hugh Bonneville from "Downton Abbey," golfer Rory McIlroy, actor Damien Lewis from "Homeland," Richard Branson and U.K. rock band Mumford & Sons, for the state dinner. Other guests include actor George Clooney and billionaire Warren Buffett, as well as New Orleans-based actor Wendell Pierce.
They'll all dine on bison Wellington, salad from first lady Michelle Obama's garden and other gourmet food on the lawn of the White House under a tent, a departure from the usual White House dinner procedure.
Nokia Working on IPad Competitor
Nokia design chief Marko Ahtisaari is working to create a tablet that will stand out among the other iPad challengers.
Nokia's CEO Stephen Elop said tablets are an interesting development for the Finnish company, but said a different approach needs to be taken to compete against the iPad. Nokia is expected to launch a tablet using Microsoft's Windows 8 software later this year.
Clinton To Deliver CTIA Keynote Speech
Former U.S. President Bill Clinton will be the final keynote speaker at this year's International CTIA Wireless event, planned for New Orleans the weekend of May 8-10.
Clinton will "share his unique perspective on preparing leaders to meet the challenges of global interdependence and implementing innovative solutions to some of the world's most pressing issues," officials said. His address will come on the final day of the event.
Nokia plans to release a Windows 8 tablet later in 2012, showcasing the company's decision to diversify and capitalize on its partnership with Microsoft as it enters a crowded tablet market.
Nokia will enter the tablet market with a 10-inch dual-core Qualcomm-powered Windows 8 tablet, according to reports by Digitimes.
The Finnish company is betting on Microsoft's upcoming OS to revitalize its smartphone line, and Nokia is doubling down on Windows 8 by featuring the platform in this impending tablet line.
The tablet reflects Nokia's larger plan to diversify its offerings, and build upon the surging popularity of tablets.
"We manufacture mobile devices, but currently no other adjacent products, such as tablets, computers and other connected devices," Nokia's most recent SEC filing notes. "As a result, Nokia products with Windows Phone may be a less compelling choice for consumers who wish to purchase multiple mobile products from the same manufacturer."
The company's decision to produce tablets reflects concerns that its narrow product line may not appeal to customers looking for integrated devices. By offering Windows 8 smartphones and tablets, Nokia addresses consumers who want to buy multiple interconnected mobile products from the same line. Cloud services are gaining momentum, so Nokia's decision to hunker down on Windows 8 products reflects its ambitions to capture consumers looking for access to services on multiple devices.
Nokia chose a tough time to enter the tablet market, as the new iPad's promising pre-sale shows Apple's continued dominance, and Google is readying its own line of integrated tablets, ramping up the competition.
Nokia unsuccessfully branched into netbooks with the Nokia Booklet in 2009, and sales faltered due to its slow Atom processor. The impending tablet's up-to-date operating system and quick Qualcomm processor underscore the company learned from previous missteps and is working to ensure it does not repeat the same mistake twice.
Nokia's upcoming tablet will rise or fall on Windows 8's popularity and the company's ability to differentiate its offering from the crowd. Windows 8's preview is receiving good reviews, which bodes well for Nokia. As Google prepares for a concentrated push into tablets and Apple rides high on the new iPad's hype, Nokia is pinning its hopes on Windows 8's unique characteristics as its best chance for success in the tablet market.
Nokia plans to offer an array of less-expensive Windows phones, diversifying its range of devices to ramp up competition against Android.
At the Mobile World Congress in February, the Finnish phone maker announced the $250 Lumia Windows 610, the least expensive Lumia offering so far. The 610 expands Nokia's already diverse array of lower-end feature phones with modern upgrades, imitating Android by offering a broad scope of products to draw customers across multiple sectors, a crucial move if Nokia wants to compete with other industry giants.
The company is eager to become even more competitive against Android with a drop in prices. According to Nokia vice-president Niklas Savander, "Android is in many markets at the $130 price already, so that would suggest that if we are at $250 with the Lumia 610 we still have work to do when it comes to creating a lower-end first-time user smartphone."
Nokia and Windows have both struggled to make a splash in the U.S. smartphone market, and face an uphill battle against the likes of Apple and Android to achieve success.
But Lumia phones, with their Microsoft Windows software, stand a solid chance of generating competition. Apple dominates the high-end smartphone market, but iOS runs only on Apple devices. Google's Android operating system, however, is already entrenched in thousands of lower-and-mid-range devices worldwide, and Nokia seems poised to steal some of that momentum.
The Lumia line also offers an ideal working partnership between Nokia, a hardware expert building performance-oriented devices, and Microsoft, targeting functionality with the Windows Phone Tango update.
Windows Phone Tango intrigued initial testers, and many say it's a smoother, more user-friendly operating system than Android. Tango can also run on devices with as little as 256MB of RAM, offering a more seamless experience for users starting at a lower price point.
Microsoft also launched a Windows 8 consumer preview at the Mobile World Congress, showing the company's determination to break into the mobile market.
Focusing on lower-end phones as well as powerful smartphones is a sound concept, but it could also backfire for Nokia. Higher-end models like the iPhone 4S and Samsung Galaxy are flying off shelves, especially in the U.S. where nearly half of adults own a smartphone.
Dividing its energies is a risky move for the once-dominant phone maker, but with a strong base in emerging markets like Asia and India, upgraded low-range devices could also give a safety net should the Windows Lumia line fail to make the big entrance its makers hope for.
Still, reaching a wider array of markets is a solid way to increase revenue and customer loyalty, and Nokia is forging ahead with a new global strategy to do just that. In the end, Nokia and Windows could give Google Android a run for its money.
Nokia will offer a diverse range of phones this year, boosting both its feature phone business, while betting big on Windows to propel its high-end smartphones to success.
Nokia announced the new budget-friendly Windows Lumia 610 at the Mobile World Congress and played up several upgraded basic phones that run on the older Symbian operating system, including the Asha 202 and 203, the Asha 302 equipped with keyboard, and the mid-range 808 PureView, which boasts a camera with 41-megapixel resolution.
Nokia is banking on the Windows Lumia line, already successful in the U.K., to launch the company into the high-end smartphone market. The focus on feature phones running its aging Symbian platform surprised many at the showcase, but shows the company broadening its focus to include various markets.
The Finnish phone maker maintains a strong following in emerging markets like India and the Middle East, with 1.5 billion feature phones sold globally. Offering a new Windows feature phone, in addition to upgraded basic options on lower-priced models, will likely help the company keep a stable bottom line. That allows Nokia to please existing customers while rolling out the higher-end Lumia phones in Europe and North America, and eventually China.
Nokia, once a major player in the U.S. smartphone market, lost significant ground to the rapid rise of Apple and Android smartphones. Microsoft is also struggling to make a splash with its operating system, which failed to gain ground in other devices. The partnership between the two companies aims to regain Nokia's lost ground and offer Windows the chance to become a major player in smartphone software.
The lack of apps in Nokia Windows phones could set the phone maker back in the crowded U.S. smartphone market, however. The Windows platform now offers 65,000 apps in its store, but lags behind giants Apple and Android, which offer hundreds of thousands of apps and games. Consumers repeatedly list apps as a high priority when choosing new devices, and Nokia and Microsoft are working furiously to close the gap by bolstering incentives and relationships with app developers.
Still, there is potential for success with a planned marketing blitz for the U.S. Lumia launch on AT&T topping $100 million and a focus on first-time smartphone buyers. Nearly half of U.S. residents own smartphones, and new activations are soaring. A user-friendly phone with Microsoft's software is expected to appeal to new customers to enter the smartphone world.
Nokia is wisely diversifying its offerings, catering to existing customers with upgraded feature phones and new customers with the Lumia line, perhaps learning from its past mistakes not to put all its Symbian phones in one basket.
Nokia's recent loss in profits highlights the company's difficult transition, as it shifts towards Windows phones and gears up for big changes in this year.
Nokia took a sizable hit in last quarter, continuing to lose its dominant place in the global mobile market due to the increasing popularity of higher-end smartphones. The Finnish company saw a 23 percent decrease in smartphone sales, partly due to fallout from its abandonment of the Symbian platform, which shifted users toward Samsung and Apple.
CEO Stephen Elop took the losses in stride, emphasizing the inevitable bumps along the road to change. "We still have a tremendous amount to accomplish in 2012, and thus, it is my assessment that we are in the heart of our transition," said Elop.
Nokia's reports belie the strong early performance of its Windows phones, the company's new featured product. Nokia launched the Windows Phone-based Lumia in several international markets to positive results. The phone sold out in the U.K., and shipped more than a million headsets overall.
AT&T will exclusively carry the Lumia 900 in North America in the upcoming months, demonstrating confidence in Nokia and Window's partnership and marketability.
Nokia partnered with Windows and dropped development of its Symbian platform in 2011, dramatically shifting its focus to rekindle and re-market its brand. The quarterly reports are disappointing, but exceeded analyst expectations, with Nokia chalking it as part of its transition.
The company isn't expecting to rake in profits during this difficult period. Nokia sees the transition as an investment in its future appeal, and likely expects to feel some growing pains during the process. The company remains optimistic about what it will blossom in a few years' time, anticipating a significant resurgence.
In the meanwhile, it will continue to lean on its strengths in feature phones and emerging markets, though the rise of low-cost Android phones in regions like India, China and the Middle East is expected to challenge Nokia in its strongest sector.
Nokia's transition has its risks, but analysts share the company's confidence that they will pay off in the future. Despite the quarterly reports, Nokia is focused on maximizing its Windows partnership's potential and will likely continue to face challenges until its strategy bears fruit.
Nokia's Windows Phone-powered Lumia 900 will sell for $100 when it launches at AT&T later this year, according to reports, in a move that will raise the profiles of the maker and the OS.
The Finnish phone-maker will sell its flagship device at half the price of other manufacturers' phones, starting on March 18, according to BGR. Nokia has not confirmed the report, but a $100 price tag would make the Lumia 900 one of the best values on the market for a smartphone.
The Lumia 900 will feature a 4.3-inch display, a 1.4-gigahertz processor, a 8-megapixel camera capable of 1080p video and support for AT&T's LTE network.
A $100 Lumia 900, selling along with the Lumia 710, which many outlets offer free with a two-year contract, would give Nokia two of the strongest options in the low and mid-range smartphone categories. These devices may struggle to compete if priced similarly to other handsets with the same specs, but now they stand out in their price group as very strong options.
The Lumia 900 may not be a big moneymaker for Nokia in the U.S. at a $100 price point, but it will likely sell well, opening the door for the manufacturer to expand further into the U.S. market. The Finnish phone-maker is easing its way back into the U.S., after falling out of favor with consumers by failing to offer smartphones that measured up to competitors. The low price is a strong first step in gaining consumer attention, though it still must compete against a slew of handsets from Samsung, HTC, Apple and more.
The attractive price is also good news for the Windows Phone platform. Wide adoption of Nokia's new handsets will lead to a boost in market share for Microsoft's operating system, which lags well behind Apple's iOS and Google's Android. Microsoft, Nokia and AT&T will launch an extensive marketing campaign, and the Lumia deal will help raise Windows Phone's profile in the market as well.
If the Lumia 900 sells well at $100, Nokia will make great strides in establishing a greater presence with American consumers, and Windows Phone will also have more exposure than ever before. Once Nokia can prove customers are willing to buy its devices, it can test whether they're willing to buy them at premium prices.
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