Nokia’s Lumia Windows Phone Smartphones – Worryingly Uncompetitive, Says Analyst

Nokia’s New Handsets Not Expected to Reverse the Smartphone Market Trends

by Anton Shilov
10/27/2011 | 03:55 PM

After Nokia Corp. said it would dump Symbian operating system for smartphones in favour of Microsoft Corp.’s Windows Phone platform, sales and marker share of Nokia’s advances cell phones began to collapse. But even the availability of the company’s first smartphones powered by Windows Phone 7.5 “Mango” will not be able to reverse the trends and quickly regain lost market share to Apple, HTC, Samsung and others.

 

“[The new phones are] worryingly uncompetitive. [Nokia] is unlikely to see a meaningful change in trends as it launches these products,” Pierre Ferragu, an analyst at Sanford C. Bernstein, reports Tech Trader Daily blog.

The new Nokia 710 and 800 are based on Qualcomm MSM8255T 1.4 GHz "Scorpion" system-on-chip with one ARM Cortex-A8 core, Adreno 205 graphics processor with hardware acceleration for high-definition video playback, dual-channel LPDDR2 memory controller as well as GSM (GPRS, EDGE) W-CDMA/UMTS (HSDPA, HSUPA, HSPA+), MBMS support. The phones have 512MB of RAM and are equipped with Bluetooth 2.1, 802.11b/g/n, G-sensor, digital compass, A-GPS, micro-USB, 3.5mm audio jack, 3-axis accelerometer and so on. Both smartphones include "signature Nokia experiences" optimized for Windows Phone, including navigation and multimedia software.

“If the Lumia 800 appears like a well rounded phone with a nice and fairly distinctive design (similar to the N9), I see the launch price point as a deal breaker. I don’t think Nokia can regain anything in the $580 price band, in which Android and iOS probably have over 95% market share. This phone [is] condemned to be either anecdotic or go through massive price cuts in the next 6 months. The Lumia 710 comes across as cheap build in its bulky plastic form. At $375, the phone doesn’t appear fit to compete against Android phones and is much closer to $100-$150 phones from Huawei and ZTE that are ramping up,” added Mr. Ferragu.

At present it is hard to draw any balanced and objective conclusions about Nokia’s first handsets powered by Windows Phone operating system. Nokia did not reveal a substantial amount of details about the new handsets, including battery life and others. Thus, the phones may become more successful than initially thought. Still, it should be admitted that the Lumia lacks eye-catching unique design, advanced hardware and advanced feature set.