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.
Verizon is planning a big marketing push for the launch of Windows Phone 8 later this year, giving the struggling OS momentum to take on Apple and Android.
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.
Microsoft plans to release Windows 8 in October, aiming to give the OS a leg up in a starkly competitive market.
According to Bloomberg, Microsoft will finish work on the Windows 8 during the summer. The report also confirmed predictions that the OS will work with devices using Intel chips, as well as ARM, the first Microsoft's OS tackles the seamless integration.
The October release will help Microsoft stake its claim in the tablet market, and a fall debut provides good timing to create hype for the holiday buying season and let hullabaloo surrounding Apple's new iPad die down.
Microsoft designed Windows 8 to run on tablets, traditional PCs and smartphones, and the company hopes to bridge the gap between different devices and capitalize on users' desire for an integrated experience.
Windows 8 features an app store with a player allowing users to run Android apps, and Microsoft continues to search for unique app entries.
In addition, the company is relying on its already-popular Kinect gaming features to integrate unparalleled gaming technology on laptops running Windows.
Microsoft is betting its upcoming partnership with Nokia will help propel Windows 8 into the tablet market, and both companies are gearing up for intense competition with Google's forthcoming integrated tablets and Apple's popular iPads, not to mention solid opposition from Amazon's Kindle Fire.
Windows 8 is up against stiff competition in the tablet market, but it has some strengths to play on for overall success. Despite dips in traditional PC sales, Microsoft's domination of that market means the operating system will have a robust conventional desktop audience to tap into for mobile customers. Dominating the PC market could sway consumers to try out the OS on more mobile devices, upping Microsoft's share in a crucial market.
Windows 8 is getting good reviews from critics, but it must contend in the mobile market with the established supremacy of Apple and emerging competition from Google. The October release date will give Microsoft a marketing advantage, but even with this possible edge, Windows 8 will have to be a powerhouse to overtake its rivals.
Microsoft plans to release Windows 8 in October, aiming to give the OS a leg up in a starkly competitive market.
According to Bloomberg, Microsoft will finish work on the Windows 8 during the summer. The report also confirmed predictions that the OS will work with devices using Intel chips, as well as ARM, the first Microsoft's OS tackles the seamless integration.
The October release will help Microsoft stake its claim in the tablet market, and a fall debut provides good timing to create hype for the holiday buying season and let hullabaloo surrounding Apple's new iPad die down.
Microsoft designed Windows 8 to run on tablets, traditional PCs and smartphones, and the company hopes to bridge the gap between different devices and capitalize on users' desire for an integrated experience.
Windows 8 features an app store with a player allowing users to run Android apps, and Microsoft continues to search for unique app entries.
In addition, the company is relying on its already-popular Kinect gaming features to integrate unparalleled gaming technology on laptops running Windows.
Microsoft is betting its upcoming partnership with Nokia will help propel Windows 8 into the tablet market, and both companies are gearing up for intense competition with Google's forthcoming integrated tablets and Apple's popular iPads, not to mention solid opposition from Amazon's Kindle Fire.
Windows 8 is up against stiff competition in the tablet market, but it has some strengths to play on for overall success. Despite dips in traditional PC sales, Microsoft's domination of that market means the operating system will have a robust conventional desktop audience to tap into for mobile customers. Dominating the PC market could sway consumers to try out the OS on more mobile devices, upping Microsoft's share in a crucial market.
Windows 8 is getting good reviews from critics, but it must contend in the mobile market with the established supremacy of Apple and emerging competition from Google. The October release date will give Microsoft a marketing advantage, but even with this possible edge, Windows 8 will have to be a powerhouse to overtake its rivals.
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 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.
Microsoft plans to unveil Windows 8 on February 29, and push into mobile by unifying its software on all its devices.
The Redmond, Wash.-based company will hold the event at the Mobile World Conference, marking the first time the public will get to go hands-on with the new operating system, which is expected to be the cornerstone for a unified Microsoft brand.
Microsoft's decision to lift the curtain on Windows 8 at a conference that will showcase mostly mobile devices and products is out of the ordinary. However, the company may have chosen MWC for its big reveal so it can show how the new OS will interact with its mobile Windows Phone platform. Microsoft is in the process of making a tremendous push in the mobile market, and its devices' compatibility with Windows 8 products is key to their success.
The company has made strides to unify the look of its operating systems for PC's, future tablets, smartphones and the Xbox, and analysts speculate the software giant is grooming these offerings to interact. Microsoft now appears to be echoing Apple's strategy of creating an ecosystem of products that allows users to move from one device to another without having to relearn how to use certain apps or adjust to a new interface.
The goal of Windows 8 is to have devices in different classes that can be used together. For example, a Windows-powered Nokia Lumia smartphone that can control the dashboard of the Xbox 360, or a tablet running Windows 8 that can be synced wirelessly over the air with a user's PC at home.
Microsoft will reportedly have several apps in its Windows 8 beta software for attendees to test-drive. The showcased apps include Camera, Messaging, Mail, Calendar, SkyDrive, People, Photos, Video and Music, according to a leak reported by The Verge. In addition, the Windows 8 interface will be different from past versions of the platform, with a start screen consisting of a tile design, similar to the style of Windows Phone and the Xbox 360 dashboard.
One key to Windows 8's success will be the way these key apps integrate into the operating system's new UI and how easy they are to use and sync across multiple devices. The addition of an app as simple as Mail can be a tremendous positive for the platform if it features user-friendly design and is easily accessible.
Windows 8 is arguably Microsoft's riskiest endeavor yet, so the stakes for the OS are very high. The company needs the operating system to succeed in order to transition from personal computing, a market that has stagnated in recent years due to the rise of tablets.
If Microsoft's current customers become accustomed to the new OS and like the way it works on their laptop or PC, they'll be more likely to pick up devices that run a similar platform like Windows-based phones or tablets, helping the aging tech giant transition into an increasingly mobile era of computing.
The launch of Windows 8 is one of the biggest things happening in the world of tech this year. Microsoft's presence at MWC will likely be a covted glipse of the new OS yet, creating hype and expectations that will last until its release later this year.
Microsoft plans to unify its app, gaming and other platforms, as it abandons its point system and moves to real currency for purchasing digital content.
The Redmond, Wash.-based company will phase out the point system this year, according to Inside Mobile Apps. Users purchasing content from Microsoft on the Xbox or Zune market will be charged a real dollar amount directly to their credit card, rather than purchasing points that are then used to redeem digital downloads.
Microsoft Points have been highly criticized by analysts since their inception. In the system, 80 points was the equivalent to one U.S. dollar; however, they could only be purchased in pre-determined package sizes. Users' inability to purchase the exact number of points wanted often led to spending more money than needed.
For example, if a customer wants to purchase an item priced at 1,400 points, the system doesn't provide a way to buy exactly that number of points. Instead, customers must purchase a $20 package of 1,600 points.
Microsoft will not confirm reports that its point system will be phased out, but analysts believe the move would be a good decision for the company. Competitors like Apple and Google sell digital items across various markets and services using dollar amounts, and have had incredible success in becoming large platforms for serving content across devices and media.
Now, as Microsoft attempts to unify its product lines, the best interest of the company will likely be unifying its method for purchasing digital content. The company has launched a marketing campaign that attempts to show the benefits of using all of its products together, from the Xbox, to a Windows Phone, to a Windows-powered PC.
This message would likely come across clearer if the method for making digital purchases on each platform were the same, especially as the company angles to launch Windows 8 this year, which will integrate phones, tablets and PCs across one OS.
The amount of revenue generated from digital purchases through mobile devices and even the Xbox has skyrocketed over the past two years. Microsoft's point system may have forced many customers to steer clear of the company's content.
But if Microsoft puts a simpler, unified system for making purchases across all its platforms in place, it will be in a better position to compete with companies like Apple and Google, especially as its plans for Windows 8 unfolds.
Nokia shipped more than one million Lumia handsets last year, analysts estimate, signaling early success for the company's critical Microsoft partnership.
The Espoo, Finland-based phone maker shipped between 800,000 and 2 million Lumia handsets to carriers, averaging around 1.3 million, according to Bloomberg. The promising forecast will help renew investor confidence in the company as looks to its line of Windows phones to rebuild its struggling brand this year.
The Lumia 800 went on sale in Europe in mid-November, while the Lumia 710 launched in four Asian markets and Russia in December. The 800 got off to a strong start in the U.K., selling out in many locations and leaving Nokia scrambling to meet customer demand for it, which hints at good things to come for the company's diversification into Windows devices.
Nokia is the top mobile phone maker in the world by volume, but that rank does not ensure either investor confidence or economic success for the Finnish company since low-end, low-cost handsets account for most of those sales.
Analysts project Nokia could nab third place in the global smartphone market if its Windows gamble pays off, lagging behind Apple and Google but beating out struggling BlackBerry maker RIM. Lumia sales could top three million this quarter, Bloomberg predicts, especially if the company's Windows phones sell well in Asia, a market where Nokia succeeded before with its Symbian devices.
Apple and Google garnered top spots in North America in recent years, offering high-end handsets that appeal to users looking to do more data-intensive activities on their phones. As a result, Nokia was largely left behind. The company is banking on momentum gained with strong, early Lumia sales to propel its journey back to the top of the smartphone market this year.
North America is next on Nokia's list, as AT&T readies for launch of the Lumia 900 later this quarter, giving the handset maker a potential foothold in a market dominated by Apple's iPhone and Google's Android-powered smartphones.
T-Mobile began offering the Lumia 710 this month, providing a low-end re-entry into the U.S smartphone market for Nokia. The true test for Nokia's recovery strategy, however, is the upcoming Lumia 900 launch. As Nokia's first LTE Windows phone and a Consumer Electronics Show award-winner, the 900 aims to attract users looking for a high-end, full-featured smartphone who want to try another option besides an iPhone or Android model.
If analysts predict correctly, Nokia's Windows phones could be strong competitors against Apple and Google in a market where some consumers are looking for fresh options. If the Lumia 900 gains a foothold in the U.S. market, it will signal the first real step in Nokia's turnaround.
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