Nokia’s re entry into the mobile phone market is a nostalgic moment for many of the Indian mobile phone users. For many of us, Then Android came and swept the market, catching Nokia off guard, which misread the new wave of smartphones and consumer needs in emerging markets. As a result, it ended up losing significant market share to
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New deal: A win-win situation for all
It is a win –win for HMD global Oy ("HMD"), FIH Mobile Limited ("FIH") and Nokia Technologies. FIH & HMD will get the Nokia branding rights and business assets, including its Hanoi manufacturing facility, global distribution, fulfillment and supply chain networks. HMD ‘s market entry with an existing leading brand name will surely help in bringing the products to the market quickly. Meanwhile, Nokia technologies will continue to receive the royalty for its brand name and patents.
Here are the five things Nokia should consider for re-entering India
India’s mobile market has dramatically changed in last few years. LTE devices shipment has increased from 11% in Q1 2015 to 66% in Q1 2016 adding many new players who are exclusively taking their game on 4G devices. E-tailers have become a significant contributor for selling the devices across India. However, the dynamic nature of Indian market suggests that it is not too late to re-enter considering a few critical aspects like:
The game is still on for feature phone – Feature Phone market in India is declining but still constitute around 56% of the overall mobile phone market and bigger players are taking the share in this segment. Nokia was the undisputed leader in the Feature Phone market and still enjoys a high brand recall especially in the lower tier cities and rural parts of the India. It will add a significant value if HMD uses “Nokia” brand name to capture this segment quickly.
Provide a pure Android experience – In presence of so many Android smartphone options at all price points, Indian smartphone users never really embraced Windows mobile OS running on Nokia Lumia range of smartphones. With the reentry, Nokia should target to provide pure Android experience while adding some of its popular features from its existing apps library. Nokia’s device design capability coupled with the leading OS ecosystem will give a compelling reason for smartphone users to consider Nokia.
A focused portfolio in the entry level & camera focused devices in the mid end segment – In India, 3/4th of smartphones sold in CY2015 were priced below $150. Affordable devices with Nokia’s brand name will definitely appeal to first time smartphone users. Also, Nokia Lumia devices were known for great camera and image capturing capability, which should be capitalized upon in the mid segment.
Rebuild its existing distribution network – Nokia should start rebuilding its distribution network with its old partners. Reviving the relationship with erstwhile distributors and network operators and bringing them back to the fold will be crucial to the reentry.
Leverage the edge of
(The article is authored by Jaipal Singh, Market Analyst at IDC)
(Image: Indiatimes)