Nokia accused of failing to compete with iPhone

old-nokia-littleTelecommunication market analysts have labelled Nokia’s three-year attempt to come up with a suitable rival to the iPhone a failure.

Despite persistent efforts by the Finnish mobile giant, no progress has been made in the high-value smartphone market that remains dominated by competitors, primarily Apple.

Leading consulting and research firm Strategic Analytics has estimated that Nokia lost USD 8 billion (EUR 5.7 billion) in sales last year alone due to its weak performance in the touch-screen smartphone arena. These calculations are based on the assumption that the touch-screen market share would be similar to that of the general mobile phone industry.

Strategy Analytics said Nokia’s share of mobile phone sales was around 38 percent in 2009. Their cut of the touch-screen device market was less than half that, however, which has been attributed to the fact that the Nokia model is the most expensive in the US. Strategic Analytics said that as the US boasts the world’s most important market, underperformance there could only be blamed on strategic error, reports Helsingin Sanomat.

Despite launching an iPhone lookalike in 2007, and repeated promises of things to come since, no serious challenger to the iPhone has yet been released by Nokia. Research organisation CCS Insight spokesperson Ben Wood said that it was widely believed that Nokia’s refusal to alter its design process had led to the failure.

“It is unforgivable that Nokia has lost three years in developing a competitor to the iPhone. Nokia is unable to even imagine how large of an internal change it would take to be able to develop a device such as the iPhone,” said Wood.

Comments are closed.