Unsurprisingly Nokia’s market dominance is slipping
Recently one of the news agencies i subscribe to ran an article regarding a global survey on mobile phone usage by teenagers. Unsurprisingly, Nokia seems to be less popular.
“Nokia’s dominance at the top of the global chart has been weakened over the last 18 months. In the survey, conducted across 31 countries by Habbo, it is clear that Nokia has lost some favour with teens to Sony Ericsson and Samsung since autumn 2006″
“Despite still being the favoured handset in 15 of the 31 countries polled, Nokia loses out to Sony Ericsson in markets such as the UK, Germany, Denmark and Switzerland. In all of these markets Nokia ranked first in 2006.”
Do you think its pretty surprising?
Lets take a look at why Nokia became darling of the mobile world and why in my humble opinion it will soon be dethroned from it’s position at the top unless it does something drastic.
Back when cellular technology was new ;boring Motorola’ was the king of the hill, with their black flip phones that weighed a ton. Then along came Nokia with funky designs, clip on covers, enhanced SMS (multiple sms), picture SMS’s and predictive text. All of these things were revolutionary at the time, and it ensured that their phones became a ‘must have’ and turned a large number of teenagers into brand loyalists. These teenagers grew up, still caught up in their time warp and brand loyalty continuing to purchase new products even when it provides no ADDITIONAL value. This is a major coup for marketers and consumers are giving up their power but thats the topic of another post.
Now, Since then Nokia has not been revolutionary or changed anything fundamentally about how they do things. Why should they? they have a hoard of willing buyers who will always be willing to buy their new products with minor modifications of the layout of the buttons and additional features.
The problem with this strategy of ‘incremental’ innovation and tweaking of original innovations is that sooner or later someone will come along (i.e Apple?) and leap frog you and consumers will soon realise your products just don’t add that much value to their lives any longer. This is where you start to loose customers and you have to play catch up.
Grow up, Innovate or loose!
Tagged as GSM, Innovation, Mobile Phones, Nokia + Categorized as Uncategorized