Nokia may be making fewer devices in 2010, I think this is a good thing
According to Reuters UK Nokia will be halving the number of smartphones it released in 2009 when 2010 rolls around and in my opinion that should be a good thing for the company as they try to maintain their worldwide market share. The article states that around 20 smartphones were introduced in 2009, but looking through all the Nokia models I could find online (check out the Mobiledia) it looks more like around 35-40 devices were released. Maybe they are not counting the lower end S60 devices and are just focusing on the mid to high end devices.
I remember back in the day when Sony released CLIE models every 3 months and I spent a LOT of money on them trying to keep pace. We see this a bit with both HTC and Nokia today and I personally may be able to save some money if Nokia slows down their releases a bit.
Either way, I think limiting the number of phones released helps more than hurts for a couple of reasons:
- Consumers can buy with a bit more confidence knowing that their device will be relevant for a longer period of time.
- Nokia can spend a bit more time with each device and release a more refined product with follow-up updates that make the device more stable and feature packed.
- Nokia devotes more resources to fewer projects, thus making them better and more complete.
- Nokia saves money in terms of manufacturing, support, etc. and can again stay competitive in the market.
Can you think of any other reasons fewer devices is a good decision? Do you disagree with me and think this is a bad thing?
5 Comments to Nokia may be making fewer devices in 2010, I think this is a good thing
I don’t know if they need to make fewer devices but they do need to make devices people really want to buy. Right now the only new device I see as worthy of purchasing is the E72 and while highly functional I’m sure even it will feel old in six months. I really like Nokia, I hope they can right the ship in 2010.
From Nokia’s viewpoint, this is a very good step, considering the fact that it has posted a loss in the July – Sept quarter. I see the following advantages to their strategy :
- Focus on high end means better margins. This should improve profitability
- Lower number of models and releases means lower inventory carrying cost as well as lower factory costs (due to better managability)
Also, Nokia is losing to iphone in high ends. Unless they address this issue, their bottom line will be endangered.
Aman
Twitter id : amancool5
People are going to be pleasantly surprised the first time they play with an Nokia N900… and even more so when its successor comes out in 2010.
December 8, 2009
[...] Why Fewer Nokia Devices in 2010 is a Good Thing [...]
Unbelievably smart choice… Turn-by-turn on 2xxx devices! Not so **** for smartphone users but it’ll sell. At $160 you could hardly pick a good one up from rather shrinking PND market.
December 5, 2009