Shining a Light on Nokias Lumia Launch

Barely a week passes without some analyst or piece of research tipping Windows Phone 8 as a contender – not for the top spot, necessarily, but at least as a viable third way alongside Android and iOS. However, its fortunes seem inextricably tied with that of Nokia, which hasnt had the best year so far, posting operating losses of €827m for Q2, 2012.

Its nearly time to put all that theory into practice, with Nokia finally unveiling its first smartphones running the OS yesterday. Nokia was beaten to the punch by Samsung just a week earlier, as the first manufacturer to show off smartphones for the OS – but the latest batch of Lumia smartphones look rather impressive in their own right.

David McQueen, principal analyst at Informa Telecoms & Media, thinks Nokia could find itself in in prime position to capitalise on the upsurge in interest resulting from the Windows 8 launch, and climb back into the affections of the smartphone user.

“The arrival of Windows Phone 8 is a welcome boon for Nokia, and the wider Windows Phone ecosystem in general,” said McQueen. “The ability now to pack better hardware into the devices gives Nokia and other WP OEMs the opportunity to level the playing field against the likes of Apple iPhone and the best that Android can offer. With a few new stand-out features in the Lumia 920, such as the impressive screen, PureView, OIS and wireless charging, added to a host of peripherals and Nokia’s new class of navigation and mapping services, the device is undoubtedly a desirable, impressive piece of kit.

“However, it is the ability to translate this message at the point of sale and prove its value proposition to the consumer that will determine the success of Nokia’s WP devices and help grow the platform. The company aims to do this through improving its retail execution and simplifying its marketing messages – with versions specifically for the enterprise – while also having its devices in a range of colors to create some level of DNA at retail.”

Tony Cripps, principal analyst at Ovum, points out that while Nokias attempts at differentiating its handsets in a crowded market are wise, the Lumia is almost as important a launch for Microsoft as it is for Nokia.

“Despite recent gains, Windows Phone is not yet performing to Ovums expectations,” said Cripps. “This is, at least partially, a consequence of the strength of the opposition, but partly, we think, as a deliberate move by Microsoft and its hardware partners to avoid flooding the market too quickly with the platform before they are in a position to play up its synergies with other Microsoft products, especially Windows 8 for PCs and tablets, and its business apps. The clear benefits to businesses from the ready integration possible across Microsofts products set will set a benchmark for BYOD strategies focused on out-of-box device capabilities once Microsofts full range of new platforms is available.

“As for Nokia itself, the companys focus on improving the imaging capabilities of its smartphones is a reasonable strategy in an age when meaningful differentiation between different makes of smartphone can be hard to identify. This also applies to the design language of the new Lumia 920, which while it follows closely that of its predecessor remains distinctive and not overly familiar as yet. There could be also a real opportunity here for Nokia and Microsoft to exploit any shortage of Samsungs Android-powered smartphones in the market following the US court ruling against the Korean giant in its patent dispute with Apple, although anything too blatant on that front would seem like a low blow.”