Nokia Fights Notion It's Losing Ground
By Scott M. Fulton, III | Published September 26, 2006, 5:42 PM
In its most concerted effort to date to recapture what some have perceived as waning brand interest, Nokia kicked off a four-city worldwide tour today with a gala event in New York City, where five new handset models took center stage. At the high end is the innovative N95, with a two-way sliding keypad that flips its mode between media player and cell phone, a built-in 5-megapixel camera, and speakers Nokia says will produce a "3D stereo effect."
The fact that the N95 is an HSDPA device will likely mean that Cingular will be the first, if not the only, major US carrier to offer the phone to its customers. Competitors Sprint and Verizon are still heavily entrenched in EV-DO -- the other "third-generation" (3G) wireless data technology -- while T-Mobile, which supports HSDPA in Europe, has yet to announce a 3G strategy for North America.
HSDPA is one high-speed extension of W-CDMA cellular technology, in which Nokia remains firmly positioned.
Three weeks ago, Nokia demonstrated in Hong Kong an upgrade to W-CDMA networks there that enabled a 3.6 megabits per-second (Mbps) data-driven phone call, using the company's new 16QAM modulation scheme. Nokia believes it can implement similar "simple upgrades" to existing CDMA and EDGE cellular networks worldwide, to achieve a possible tenfold increase in data throughput speeds.
The key to staying on top of the CDMA evolutionary juggernaut may be deciding in a flash which evolutionary path to follow - and there are several. Earlier this month, wireless analyst firm ABI Research predicted overall 3G cellular subscriptions worldwide to top 285 million before the end of this year.
In addition, W-CDMA -- the evolutionary path from which both HSDPA and EV-DO sprout forth -- may represent a larger share of 3G subscriptions than CDMA2000, the evolutionary trend from a few years back. That changing of the guard, however, ABI believes, could take place in 2012.
There's been considerable confusion of late with regard to what "side" these new 3G technologies are truly on. While the UMTS Forum -- which represents technology partners in the 3G space -- openly tout HSDPA, both in its native Europe and worldwide, as "the successor to GSM," technologically, it is actually an upgrade to GSM's cellular technology rival, CDMA.
In fact, proponents of both EV-DO and HSDPA technologies position them as upgrades to the existing CDMA cellular infrastructure (the "EV" in EV-DO stands for "evolutionary"). Communications technology giant Qualcomm has stakes in both technologies, and has even advanced them both on parallel courses.
Yesterday, Reuters cited a Strategy Analytics report stating that Nokia's US market share had slipped to just 13%, behind Samsung with 16% and #1 Motorola with a remarkable 44%. To show just how much of a disconnect there is between the US market and the worldwide cellular market, iSuppli's global numbers for Q2 of this year still show Nokia on top worldwide with 35% market share -- actually gaining 1% from the prior quarter -- shipping an estimated 78.4 million units during the quarter.
Motorola, however, did gain 2% over the prior quarter, closing the gap against Nokia a bit, with 23% share; Samsung had a 12% share in Q2.
In turn, the N95 could represent Nokia's best opportunity to date to close the loop, and bring North American performance back in line with the rest of the world. With US regulators giving the final nods to the merger of AT&T Inc. and BellSouth, Cingular now has one owner, and may feel more empowered to make a name for itself as the continent's only HSDPA provider.
Europe will probably be the first major market to see the N95, per usual, with Nokia estimating prices for its Q1 2007 launch at about 550 euros (just under USD$700).
Can't stand motorola. I like samsung more and more. Nokia doesn't seem to even be exposed as much, it wasn't pushed by sales the last two phone's I've had.
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|I have owned Nokia cell phones since 2001. I've had 4 of them. And each one has gotten progressively worse.
Nokia lacks design and function. The latest phone has only 4MB of non-expandable memory, a horrible camera, and the hinge broke within 3 months. They are apparently behind in technology. They wait to see what companies like Motorola and Samsung do and try to emulate it.
I will most likely be looking elsewhere next time. $700 is way too much considering it doesn't have a full keypad.
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|I think a cell phone should work under every circunstance, not "be fun" or nice or reproduce nice tones. Of course, other functions are welcome, but the focus is the quality of service and the good interface. The rest is marketing noise. Nokia prooved to work flawesly in every phone from them I had. I can't say the same for Motorola, Samsung, Panasonic or Ericson (now branded as Sony). Long live to Nokia!
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|Nokia's phones really are nothing special. Back in the day I think they were the only phone's out there except for motorola. Samsung and motorola are the best in my opinnion now days. I very rarely even see nokia's phones. I won't miss them if they go under that is for sure.
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|Has Motorola finally fixed the very serious bluetooth bug in their phones? The one that gives the error message "Bluetooth module not attached" when trying to pair a bluetooth headset?
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|I work for a wireless provider. Nokia is losing ground because their phones are BORING!! Even their new 6255 flip that we had was buggy. They need to diversify their and improve their flip phones as well as expand into the Smartphone/Pocket PC playground more.
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|I think that Motorola know how to market themselves better in the US. The RAZR and ROKR are the iPods of the cell phone universe. While I think the comparison is fair - I don't think the RAZR is a good phone for several design defects. I own one and the entire screen is disappearing in dust that has magically managed to get stuck in the screen - this started after one month of owning it.
Ouch!
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|The Motorola RAZR phone is not the only phone with the dust under the screen defect. The Samsung t809 phone is another phone with the same defect.
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|Go Moto !!! Moto's have had the same gui for like forever. Boring, and any new user to Moto will be wanting to bash dislexic programer who designed it.. but had a few Motos now and wouldn't go back.
My v3x has been bashed dropped and neglected but still works flawlessly. I can update the firmware, modify it, alter the keymapping play whole movies listen to my mp3's check my emails, surf the web but hey if I feel like modding it for the sake of it I can.
There's been bugs but check out the Motorola modding community... Any new Moto phone will have modified firmwares, skins, bug fixes tips and new apps available almost as quickly as they release their phones. Even Mac and linux users have Moto modding apps available for their OS's.
Besides other phone companies are making exact replicas of Moto phones... even the v3x has a mirror image copy from anotehr phone company. Motorola is doing something right. Hope they kick some Nokia butt.
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